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Century Casinos Closes South African Transaction28 September 2006COLORADO SPRINGS, Colorado – (PRESS RELEASE) -- Century Casinos, Inc. (Nasdaq: CNTY; Vienna Stock Exchange) announces the closing of the previously announced agreement to sell its interest in the Gauteng, South Africa, development project to the Akani Group (comprised of Akani Leisure Investments (Proprietary) Limited and Gold Reef Resorts Limited). Century's interest in the project included a 30-year casino and resort management agreement as well as certain rights to buy equity stakes in Silver Star Development Ltd., the company licensed for the casino development project. The agreement with the Akani Group provides for a cash payment in the amount of R 43,290,376 (approximately $5.7 million), which has been received by the Company yesterday. The Akani Group will now seek approval of the Gauteng Gambling Board ("Board") for this transaction. Should such approval not be forthcoming by June 30, 2007, the Akani Group has the right to amend the terms of the management agreement to a reduced scope of services and fees, again subject to Board approval. If such Board approval is not obtained by September 30, 2007, Century has the right to have all of its interests (including the management agreement and the rights to buy equity stakes in Silver Star Development Ltd.) reinstated against a payment of R40,290,375 (approximately $5.3 million). "We are pleased with the closing of this transaction and the income we have been able to generate out of this development project. The planned openings of our casino resort in Edmonton, Canada, on November 7, 2006 and the new facility for our casino in Newcastle, South Africa, on November 25, 2006 are the next milestones we look forward to," said Co CEO and President Peter Hoetzinger. |