MEDIA RELEASE – for immediate release
Tuesday 12 December 2000

SKY CITY CONFIRMS INTENT TO ACQUIRE 33% OF CANBET

Australasian gaming and entertainment company, Sky City Limited, today confirmed it had completed due diligence on Australian online wagering company Canbet Limited and plans to proceed to acquire up to 33% of the company at a revised price.

Sky City currently holds a 6.8% interest in Canbet which was acquired in July 2000 at A$0.30 per share.

Completion of the investment is conditional upon regulatory approvals, Australian Stock Exchange approval of proposed amendments to Canbet’s constitution, and the agreement of Canbet shareholders to the transaction.

If the conditions are satisfied Sky City will acquire a further 96.33 million shares, plus an equivalent number of options in two equal tranches at A$0.15 for each new share and option. The total cost of the transaction, including the initial investment, will be A$19.45 million (NZ$24.88 million). The options will be exercisable on or before 31 March 2002 at A$0.20 each. Sky City will also have the right to appoint two directors to the Canbet board.

Sky City Managing Director, Mr Evan Davies said: “We are delighted to have agreed terms to acquire a strategic shareholding in Canbet. The acquisition confirms Sky City’s intention to participate in the electronic wagering market through a well established, licensed operator.

“We believe online wagering will be an important feature of the gaming industry in the future and Canbet is one of the leading brands in this sector, with a loyal customer base and a state of the art technology platform.

“Canbet’s internet wagering business is experiencing significant revenue growth and has a global customer base through its coverage of a range of popular sports. Sky City’s investment will provide Canbet with further capital to expand and take advantage of the growing demand for online wagering.

“Online wagering is a complementary business to Sky City’s successful casino gaming and entertainment business, and provides a significant diversification opportunity within this industry.”

For further information please contact:

Mr Mike Drogemuller
General Manager Communications
Sky City Limited
Tel: 64 9 363 6007
Mob: 64 21 445 336

EDITOR’S NOTE

Established in 1996, Canbet is an A.C.T. licensed, internet-based, bookmaking company based in Canberra, Australia, offering internet-based wagering on Australian and international sporting events.

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