Queenco Leisure International Announces Changes to Shareholding in Casino Beograd

Queenco Leisure International Announces Changes to Shareholding in Casino Beograd

RAMAT GAN, Israel, January 6/PRNewswire-FirstCall/—  Queenco Leisure International Ltd (LSE: QLI) (the “Company” or
“QLI”), a developer, owner and operator of casinos and resorts, today
announced that Club Hotel Loutraki S.A., a partially and indirectly owned
company of QLI (“CHL”), informed QLI that it has entered into an agreement
with Casino Austria AG (“CAAG”) for the purchase from CAAG of 51% of the
shares of Grand Casino d.o.o. Beograd (“Casino Beograd”), the operator of a
casino in Belgrade (the “Purchased Shares”), for a purchase price of Euro 42
million. On completion, CHL will increase its holding in Casino Beograd from
39% to 90%, and as a result QLI’s indirect holding in Casino Beograd will
increase from 13.3% to 30.7%.

  The price for the Purchased Shares is payable in two parts:
the first amount of Euro 8.4 million (the “First Tranche”) is payable upon
completion of the acquisition of the Purchased Shares (the “Closing”), and
the balance amount of Euro 33.6 million (the “Second Tranche”) is payable no
later than six months following the Closing. To secure the payment of the
Second Tranche, CHL has agreed to grant CAAG at the Closing a first priority,
fixed and continuing pledge over 60% of Casino Beograd’s issued shares
(reflecting two thirds of CHL’s holding in Casino Beograd upon Closing),
which will be removed upon payment to CAAG of the Second Tranche. Completion
of the Closing is conditional upon, among other things, receipt of approvals
from certain Serbian regulators. All conditions to Closing need to be met by
30 June 2009. The foregoing transaction is referred to as the “Beograd
Acquisition”.

  In addition, Casino Austria International Holding GmbH
(“CAIH”), an affiliate of CAAG, has granted CHL an option to acquire either
50% or 75% of the issued share capital of Grand Casino Brussels, a
wholly-owned subsidiary of CAIH, by paying CAIH either 50% or 87.5%,
respectively, of CAIH’s actual investment in the Brussels casino as reflected
in the relevant financial statements to be audited by an internationally
reputable accounting firm to be selected jointly by CAIH and CHL. This option
shall expire on 10 March 2009. The exercise of this option by CHL is subject
to completion of the Beograd Acquisition.

  Furthermore, Vasanta Holdings Ltd., a 50%-owned subsidiary of
QLI (“Vasanta”), informed QLI that it has received from CAIH an irrevocable
offer (the “Offer”) to enter into an agreement pursuant to which CAIH will
have a call option (the “Call Option”) to purchase from Powerbrook Spain
S.L., a company controlled by Vasanta and the parent company of CHL
(“Powerbrook”), and Vasanta will have a put option (the “Put Option”) to
cause CAIH to purchase from Powerbrook, ordinary shares of Powerbrook
constituting 11.74% of the fully diluted share capital of Powerbrook and
certain other securities of Powerbrook providing for special rights.

  The Offer includes an agreement that provides that the
transactions contemplated by the Offer may only be completed following
completion of the Beograd Acquisition. The aggregate exercise price of the
Call Option is Euro 54.9 million and the exercise price of the Put Option is
Euro 49.5 million.

  There is no assurance that the Offer will be accepted by
Vasanta. The Offer will expire if it is not accepted by Vasanta by 31 January
2009.

  About Queenco Leisure International

  Queenco Leisure International Ltd., the emerging markets
casino developer and operator, owns, operates and manages casinos and
adjacent leisure properties in Greece, the Island of Rhodes and Romania’s
capital Club Hotel Casino Loutraki, in which the Group has an interest via a
joint venture, is believed by the Company to be Greece’s leading casino by
drop and win with more than one million visits each year, and is located 80
kilometres from Athens. Casino Rodos, located by the sea, is the only casino
on the island of Rhodes Casino Palace is located in the centre of Bucharest
in one of the City’s historic buildings. The Group employs approximately
3,000 personnel worldwide.

  Queenco Leisure’s shares are traded on the London Stock
Exchange under the ticker symbol QLI.L.

  For further information please visit http://www.queencoleisure.com or
contact:

 
  Queenco Leisure International
  Uri Ben-Ari, CEO
  Neomi Enoch, CFO
  T: +972-3-7566-555
  .(JavaScript must be enabled to view this email address)

  ING
  Chris Godman
  T: +44(0)20-7767-6896

  Cardew Group
  Tim Robertson
  David Roach
  Daniela Cormanno
  T: +44(0)20-7930-0777

Source: Queenco Leisure International Ltd

Queenco Leisure International, Uri Ben-Ari, CEO, Neomi Enoch, CFO, T: +972-3-7566-555, .(JavaScript must be enabled to view this email address); ING, Chris Godman, T: +44(0)20-7767-6896; Cardew Group, Tim Robertson, David Roach, Daniela Cormanno, T: +44(0)20-7930-0777