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Carnegie Cooke Reports Increase in 2002 Fiscal Report

Jay Goldberg, CEO, explained: "We are pleased with these results, especially when you consider that outstanding shares have been increased to about 25 million upon completion of our private placement.

"All of the growth trends noted throughout the year remain the same. During the last 3 months of the year, we have inaugurated the Virtual Reality Machine portion of our business, already have machines operating in Porto Alegre and have begun installation of these machines in Sao Paulo.

"We have invested heavily in these machines. As of June, 2002 a portion of these machines had been received, and a deposit placed on the rest of the initial order of 200. During the last quarter of this year, we have been installing these machines and see no problem with meeting our initial goal of over 400 machines by 12-31-02. As of June 30, 2002, these machines account for less than 2% of the twelve-month income. We expect to see dramatic increases in this percentage as we near our 400 machine goal.

"As you can see from the following condensed Balance Sheet and highlighted Income Statement, the trends we have noted in the past continue. We are constantly building working capital, and have at this date invested some of that capital into the race tracks and the machines. This investment in the tracks, machines, and other tangible assets accounts for the reduction in cash of 64%. At June 30, 2001 we had not begun these capital expenditures, and had cash from the beginning of the private placement. This cash was used for these expenditures. However, our working capital of $4,140,758 is still an increase of 189% over June 30, 2001's working capital of $1,428,342.

"Although we use an SG&A figure equal to 16% of Net Revenue for our decision making and projections, the actual SG&A continues to decrease well below this point so that as of June 30, 2002, it is 9% or 53% lower than it was at June 30, 2001. This reduction of SG&A as a percent, of course, contributed to our increase of 142% in Net Income."

                              Twelve-Months Ending             Percentage
                         June 30, 2002   June 30, 2001    Increase/(Decrease)

     Net Revenue         $4,314,179       $2,012,989            114%
     SG&A                   398,759          392,965           (1.4%)
     Net Income           3,915,420        1,620,024            142%

     SG&A as a % of
      Net Income              9.2%             19.5%            (53%)

     EPS (Fully Diluted)
      24,927,132 shares       $0.16            $0.07            129%


     The following represent highlights from the balance sheets at
     June 30, 2002 and June 30, 2001.

                            June 30, 2002    June 30, 2001      Percentage
                                                          Increase/(Decrease)

     Cash on Hand              $317,480        $892,890            (64%)
     Current Assets           4,235,573       1,462,890            189%
     Long Term Assets        13,291,036      11,463,658             16%

     Total Assets           $17,526,609     $12,926,548             36%

     Retained Earnings        6,440,956       2,525,536            155%
     Shareholders' Equity    17,056,636      12,503,457             36%

     Total Liabilities &
      Equity                $17,526,609     $12,926,548             36%

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