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Carnegie Cooke & Co. Reports Improved Financial Results

Jay Goldberg, CEO commented: ``The results released today come from the OTB's that were fully operational and the 7 Jockey Clubs that were fully mechanized at October 31, 2001. Our working capital position has increased from $7,717 at October 31, 2000 to $2,898,978 at October 31, 2001. In addition, the portion of working capital made up of cash and cash equivalents continues to increase. For example, only 60% of working capital was made up of cash and cash equivalents at June 30, 2001 compared to 88% at September 30, 2001, and 91% at October 31, 2001.

"Further to this point, working capital has increased $1,470,636, or 102%, since June 30 2001. During the past 4 months, all of the increase in Working Capital was derived from revenue. Any increase in invested capital has been used strictly for the mechanization of the Jockey Clubs and the purchase of machinery and equipment for the OTB's. As of October 31, 2001, the Jockey Clubs that have been mechanized show increases in revenue of well over 300% from the same period in 2000, and this increase is based on local racing only. This makes me very confident in our future, since the plans we are working from did not anticipate such an increase in local racing alone.

``SG&A expenses have decreased to 11.5% of Net Revenue, well below our budgeted goal of 16% to 18% of Net Revenues. After these deductions, the company had Net Income of $2,174,993 and $851,485 for the ten months ended October 31, 2001 and October 31, 2000 respectively, or an increase of 155%. However, by reducing our SG&A from 20% of Net Revenue in 2000 to 11.5% of Net Revenue in 2001, we have increased Net Income by 155%. We also feel that as more and more OTB's come on line, we can further reduce this percentage and therefore increase even more what we consider to be a very impressive revenue stream.''

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