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Las Vegas Sands Reports 100% Return on Macau Casino

16 November 2004

MACAU – As reported by Bloomberg: "At the $265 million Sands Macau, the first Las Vegas-style casino in Asia, gamblers spend $1.37 million on average each day. Profit equals an annual 100 percent return on investment for owner Las Vegas Sands Corp., according to gaming analyst Jonathan Galaviz.

"'Those kind of returns are unheard of in any other casino gaming business,' said Galaviz, 28, a partner at Las Vegas-based equity research company Galaviz, Ong & Co.

"Galaviz's assessment is based partly on Las Vegas Sands filings to the U.S. Securities and Exchange Commission. Sands opened in Macau in May and wants to raise $350 million in an initial share sale to expand in Asia.

"Harrah's Entertainment Inc. and MGM Mirage, the second- and third-largest U.S. gaming companies, are following Sands to Asia, where Singapore is weighing its first casino. Local operators such as Australia's Tabcorp Holdings Ltd. and Malaysia's Genting Bhd. may struggle to thrive amid increased competition, investor Lynn Cheah said.

"…Macau has 15 casinos, 13 of which are run by Hong Kong-born Stanley Ho, who held a 42-year gambling monopoly until this year. More than 20 casinos will be operating by 2007, according to Macau Gaming Control Board Director Manuel Joaquim das Neves.

"The Singapore government is still studying the possibility of a casino and hasn't set a date for proposals, the Trade Ministry said in an e-mailed statement on Nov. 1.

"…Macau's gaming revenue rose 50 percent to $4.12 billion in the first 10 months of this year from 2003, said das Neves of the Gaming Control Board…"

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