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DION ENTERTAINMENT TO RAISE $4 MILLION THROUGH A PRIVATE PLACEMENT

DION ENTERTAINMENT TO RAISE $4 MILLION THROUGH A PRIVATE PLACEMENT
 CALGARY, Alberta, Oct. 27 /PRNewswire/ -- Dion Entertainment Corp. ("Dion") (Toronto: DIO) is pleased to announce that the company has approved an offering of special warrants to raise approximately $4 million by way of private placement. The offering will be underwritten by Gordon Capital Corp.
 Dion will use the proceeds of the offering to finance the expansion of its commercial bingo operations and other gaming ventures, as well as retiring certain short-term indebtedness and increasing working capital.
 The company expects to issue 12,121,214 special warrants at a price of $0.33 per special warrant. Each special warrant will be exercisable without further payment to acquire one common share of the company and one-half of warrant, each whole warrant entitling the holder thereof to acquire one common share at a price of $0.45 per share within the two year period following the date of issue of the warrant. The special warrants will be exercisable at any time on or before the earlier of:
 I) 5:00 p.m. (Toronto time) on March 25, 1993, and
 II) 5:00 p.m. (Toronto time) on the sixth business day after a receipt is issued for the final prospectus of the company qualifying the common shares to be issued on exercise of the special warrants by the last of the securities regulatory authorities of each of the provinces of Canada where purchasers of special warrants are resident.
 In the event that a receipt for such final prospectus is not received prior to March 25, 1993, each special warrant will entitle the holder to acquire 1.1 common shares of the company and one-half of a share purchase warrant upon the exercise thereof.
 The company has agreed to pay Gordon Capital Corp. a fee equal to 4 percent of the gross proceeds of the offering. The company has also agreed to grant Gordon Capital Corp. an option to acquire, within 18 months of the closing of the offering, 1,212,121 common shares (1,333,333 common shares in the event that the last receipt for the final prospectus is not received by March 25, 1992) for $0.33 per share and warrants to purchase 606,060 common shares within 18 months from the date of issue at $0.45 per share.
 The closing of the offering, which is subject to regulatory approval, is expected to occur on November 12, 1992.
 Leo Dion, president and chief executive officer of the company, commented, "This financing should enable our company to strengthen its position as a leader in commercial bingo operations in Canada and to capitalize on the unprecedented growth in legalized gaming in Canada."
 Dion recently announced that it had entered into an agreement with Bally Gaming Inc. ("Bally"), a wholly owned subsidiary of Bally Gaming International Inc. (NASDAQ: BGII) of Las Vegas. The agreement provides for Dion to become the exclusive Bally distributor in Canada of all Bally manufactured gaming equipment, including slot machines and Video Lottery Terminals.
 Dion Entertainment Corp. is a public company listed on the Toronto Stock Exchange under the trading symbol "DIO." Dion is the first Canadian publicly traded gaming company and is presently the second largest operator of commercial bingos in Canada. Dion owns and operated bingo operations in Saskatchewan, Alberta and Czechoslovakia.
 Dion's expansion plans include the acquisition and start-up of further bingo operations while at the same time initiating activities in the Video Lottery Terminal, Indian Gaming and charitable casino markets.
 -0- 10/27/92
 /CONTACT: Leo Dion, president and CEO, 604-684-8104, or Sid Dutchak, 403-266-2680, both of Dion Entertainment; or Bradley D. Griffiths, partner, of Gordon Capital Corp., 416-868-5425/
 (DIO.) CO: Dion Entertainment Corp.; Gordon Capital Corp. ST: Alberta IN: CNO SU: OFR


JB-LS -- LA022 -- 5542 10/27/92 14:52 EST
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Date:Oct 27, 1992
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