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ATTEMPT BY EUROPA MANAGEMENT TO STRIKE DEAL TO AID PROXY FIGHT BACKFIRES, COSTING STOCKHOLDERS $75,000

 LAS VEGAS, Oct. 26 /PRNewswire/ -- The Europa Stockholders Committee today announced that it has learned that management recently forfeited $75,000 which they had paid for an option to purchase 40 acres of land adjacent to the company's Diamond Head property in Mississippi. The option to purchase the property was exercisable at a price of $1,350,000 cash and was for a period of 45 days.
 "Clearly, the company should not have entered into an option for such a short time period if management were not certain they could obtain the financing to close the deal.
 "Management's decision was undoubtedly clouded by their hope that they could complete an acquisition on the eve of the Oct. 29 stockholders meeting which they could point to as an example of their ability to run the business. Unfortunately for stockholders, they continue to demonstrate a nearly perfect record of strategic mistakes.
 "They certainly owe stockholders an explanation as to why they would enter this kind of a transaction with no money to close and no clue where it was coming from.
 "This may not seem like a lot of money to Charles Reddien, the president, or to his sponsors at Casinos Austria, but on top of the loss of $491,917 reported for the first two quarters of 1993, this latest fiasco is but another example of the poor business judgment that management has exercised as reflected in the company's financial situation and stockholder values.
 "Throughout this proxy fight, the company has attempted to mislead stockholders by pinning every business reversal on the committee and its members. This time even the company will find it hard to blame others and maintain a semblance of credibility."
 The Europa Stockholders Committee is engaged in a proxy fight to replace the current board. The committee claims that the incumbent management lacks experience to reverse the company's deteriorating financial condition and that the incumbent board is running the company for the benefit of Casinos Austria instead of the stockholders.
 -0- 10/26/93
 /CONTACT: Mark H. Harnett or Jeanne Carr of MacKenzie Partners,


Inc., 212-929-5500/

CO: Europa; Casinos Austria ST: Nevada IN: CNO SU: RLE

TW-TS -- NY019 -- 6724 10/26/93 08:45 EDT
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Publication:PR Newswire
Date:Oct 26, 1993
Words:368
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