American Gaming Reports Year End 1999 Results.

Business Editors

GLEN ROCK, N.J.--(BUSINESS WIRE)--April 6, 2000

American Gaming & Entertainment, Ltd. (the "Company") reported in its Form 10-KSB that net income for common stockholders for the year ended December 31, 1999 was approximately $61,417,000 or $4.90 per share (including an extraordinary gain of $47,181,000 or $3.76 per share) as compared to a net loss for common stockholders of ($6,720,000) or ($0.54) per share for the year ended December 31, 1998, based upon a weighted average number of 12,532,102 common shares outstanding for each period. The primary components of such increase in net income for common stockholders are discussed below.

As a result of the confirmation of a plan of liquidation for the Company's two Mississippi subsidiaries (the "Mississippi Plan") and the dismissal of an adversary complaint filed by the creditors of such subsidiaries challenging the Company's title to a casino barge, the Company recognized "Deferred Charter Revenue" of approximately $11,743,000 as revenue for the year ended December 31, 1999.

The Company has not received any financial statement information or payments relating to its interest in a gaming project in Rising Sun, Indiana (the "RSR Interest") for the year ended December 31, 1999 and therefore has not recorded any revenues attributable to the RSR Interest for such year. For the year ended December 31, 1998, the Company recorded revenues of approximately $445,000 attributable to the RSR Interest.

Selling, general and administrative expenses were approximately $910,000 for the year ended December 31, 1999, representing a decrease of approximately $723,000 or approximately 44% when compared to the year ended December 31, 1998. Such decrease was primarily due to a decrease of approximately $609,000 related to a casino property in Nevada which was sold in June 1999, a decrease in insurance expense of approximately $67,000, a decrease in legal fees of approximately $40,000 and a decrease in directors fees of approximately $32,000.

Depreciation and amortization costs were approximately $526,000 for the year ended December 31, 1999, representing a decrease of approximately $818,000 or approximately 61% when compared to the year ended December 31, 1998, as a result of the sale of its casino barge in August 1999.

For the year ended December 31, 1999, the Company recorded a reversal of bad debt expense related to lease expenses of approximately $2,785,000 based on the sale of the Nevada property and approximately $7,000 based on a settlement for management services rendered prior to 1998. The Company also recorded a reversal of net liabilities for subsidiaries in bankruptcy of approximately $75,000 based upon the sale of its casino barge and the anticipated distributions under the Mississippi Plan. For the year ended December 31, 1998, the Company recorded a reversal of net liabilities for subsidiaries in bankruptcy of $781,000 based upon the anticipated distributions under the then proposed Mississippi Plan.

For the year ended December 31, 1998, the Company wrote down the value of a note receivable by approximately $165,000, to reflect the agreement by the Company to accept the payment of $300,000 in full satisfaction of such note.

Net interest expense for the year ended December 31, 1999 was approximately $4,410,000, an increase of approximately $1,473,000 or approximately 50% compared to the year ended December 31, 1998. Interest expense increased approximately $1,444,000 while interest income decreased approximately $29,000 during the year ended December 31, 1999 compared to the year ended December 31, 1998. Interest expense for the year ended December 31, 1998 included (i) the reversal of interest expense of approximately $2,120,000 on charter payments received by the Company that were recorded as indebtedness to Shamrock Holdings Group, Inc. ("Shamrock"), the Company's major stockholder, (ii) a reversal of previously recorded interest expense in the amount of approximately $160,000 on indebtedness due Shamrock on which the Company has determined no interest was due and (iii) a reversal of previously recorded interest expense in the amount of approximately $62,000 due to a refund of such interest pursuant to a legal settlement.

The Company recorded a net gain of approximately $4,098,000 resulting from the cancellation of indebtedness to Shamrock in exchange for all payments, distributions, dividends and proceeds of any type to which the Company is entitled pursuant to or in connection with the RSR Interest, in accordance with the terms of a previously disclosed restructuring agreement (the "Letter Agreement") between the Company and Shamrock. The Company also recorded a net gain of approximately $48,000 for the year ended December 31, 1999 related to the sale of the GM&O Building in Mobile, Alabama. Additionally, for the year ended December 31, 1999, the Company recorded a net gain of approximately $40,000 as the result of the settlement of a lawsuit brought by the Company against the purchaser of one of the Company's keno systems. The associated account receivable had been written off in 1996. No such gains were recorded for the year ended December 31, 1998.

Pursuant to the Letter Agreement, Shamrock released the Company from all debts and liabilities in excess of the amount of the Transferred Assets. Accordingly, the Company recorded an extraordinary item of approximately $47,181,000 resulting from the extinguishment of indebtedness to Shamrock.

As a result of the transactions agreed to in the Letter Agreement, the Company recorded a decrease in assets of approximately $9,915,000 and a decrease in liabilities of approximately $64,347,000 as of December 16, 1999. Additionally, net income increased by approximately $51,279,000 as discussed above, and, additionally due to the reversal of previously accrued dividends of approximately $3,153,000, net income for common stockholders increased by approximately $54,432,000 for the year ended December 31, 1999. The transactions agreed to in the Letter Agreement shall become effective twenty days after mailing an information statement discussing such matters to the Company's stockholders. A preliminary information statement was filed with the Securities and Exchange Commission on March 27, 2000.

From 1997 through October 4, 1999, the Company's Common Stock traded under the symbol "AGEL" on the OTC Bulletin Board. Effective October 4, 1999, the Common Stock has traded under the symbol "AGELE" on the OTC Bulletin Board. The Company has been informed by the OTC Bulletin Board that the symbol was changed because the report of the Company's independent public accountants on the Company's financial statements for the fiscal year ended December 31, 1998 contained a disclaimer of opinion. As a result of such disclaimer, the OTC Bulletin Board can decide to remove the Common Stock from the OTC Bulletin Board. In such event, there would be no public trading market for the Common Stock. The report of the Company's independent public accountants on the Company's financial statements for the fiscal year ended December 31, 1999 contains an unqualified opinion with a going-concern explanation, but not an adverse opinion or disclaimer of opinion, and therefore the Company intends to apply to the OTC Bulletin Board to ensure that the Common Stock is not removed from the OTC Bulletin Board and to have the symbol reversed to "AGEL".

This press release contains forward-looking statements regarding the Company's future plans, objectives and expected performance. These statements are based on assumptions that the Company believes are reasonable, but are subject to a wide range of risks and uncertainties, and a number of factors could cause the Company's actual results to differ materially from those expressed in the forward-looking statements. These factors include, specifically, the uncertainties related to the Company's ability to obtain sufficient funds for its operations.