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Equus Gaming Company, L.P. Reports Q3 2000 Results

Equus operating results are attributed to the following racetracks: El Comandante in Puerto Rico; V Centenario ``Galapagos'' in the Dominican Republic; Presidente Remon in Panama (the host of the XXXII International Caribbean Classic in December of 1999); Los Comuneros in Medellin, Colombia.

Equus had a net loss of $3.0 million, or a net loss per unit of $0.36, for the quarter ended September 30, 2000 as compared to a net loss of $428,000, or net loss per unit of $0.05, for the quarter ended September 30, 1999. For the nine months ended September 30, 2000 Equus had a net loss of $ 5.8 million, or a net loss per unit of $0.69, as compared to a net loss of $337,000, or a net loss per unit of $0.04, for the nine months ended September 30, 1999.

The net loss for the quarter and the nine months ended September 30, 2000 was primarily attributable to the following:

(1) non-recurring expense charges to cost of operations in Puerto Rico of approximately $1.2 million, incurred in this quarter and during the nine months, composed of $800,000 related to fees and costs for termination of financing negotiations, and $400,000 related to new horseowners' contract;

(2) increase in operating expenses of approximately $1.5 million relating to the Company's subsidiary, Satellite Services International, Inc. (SSI) for the planning, engineering and development of the VSAT system, and satellite leased time, throughout the Company's operations;

(3) start-up of operations and costs associated with the development of the Company's agency system in Colombia which produced a loss from those operations of approximately $500,000 for the quarter and $1.4 million for the nine months ended September 30, 2000;

Commissions on wagering decreased by $762,000, or 4.7%, for the three months ended September 30, 2000 to $15,477,000 as compared to $16,239,000 for the three months ended September 30, 1999. For the nine months ended September 30, 2000 commissions on wagering decreased by $1.7 million, or 3.4%, to $47,906,000 as compared to $49,594,000 for the nine months ended September 30, 1999.

The decrease in commissions was primarily attributable to temporary suspension of simulcast (broadcast) of live races to the Dominican Republic during the first quarter and to regulatory delays in the implementation of new simulcast program approved under the new horseowners' contract in Puerto Rico.

The Company is moving ahead to establish the new VSAT system during the next 12 months throughout its extensive off-track agency betting network in all of its operations. The Company has completed the communication center (HUB) at El Comandante.

The financing of the new VSAT system is in process of being completed. The Company's service subsidiaries, Satellite Services International, Inc. (SSI) and Agency Betting Network, Inc. (ABN) will continue to carry out the development and installation of the high-tech satellite communication system throughout the Company's off track betting network which currently exceed 1,400 agencies, and are projected to increase to more than 2,000 by the end of 2001.

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