Great Canadian Gaming Corporation Announces Acquisition of Casino in Washington State Stage One Closing.

Business Editors

RICHMOND, British Columbia--(BUSINESS WIRE)--Feb. 16, 2000

Great Canadian(CDNX:GCD)

Thomas Bell, Corporate Relations Manager of Great Canadian Gaming (GCGC) is pleased to announce that the Company has closed Stage One of the acquisition of 50% interest in SBD Inc. (SBD), the owners of the Riverside Casino in Tukwila Washington located south of Seattle.

GCGC, through its wholly owned subsidiary Great American Gaming Corporation (GAGC), after receiving regulatory approvals, has purchased 49% of the issued and outstanding common shares of SBD. The purchase price has been revised to be an all cash purchase of U.S. $1.4 million of which $850,000 has been paid with the balance due on or before March 24, 2000. GCGC will not issue share purchase warrants as previously announced on October 7, 1999. The purchase of the remaining 1% of SBD common shares for further consideration of $1.00 has been deferred pending GAGC's successfully obtaining a Service Provider license from the Washington State Gambling Commission and other regulatory approvals.

At the Stage Two closing, which is conditional upon all required regulatory approvals having been obtained, GAGC will purchase and the Sellers will sell an additional 1% of the issued and outstanding common shares of SBD, in return for payment of the further sum of $1.00. Stage Two closing shall occur within 10 business days following the day upon which such regulatory approvals are obtained. If such approvals are not obtained by March 31st, 2000, then GAGC may, by written notice delivered to the Sellers prior to May 31st, 2000, require that the Sellers repurchase the SBD shares acquired by GAGC at the Stage One Closing for a price equal to U.S. 1.4 million plus an amount equal to the undistributed portion of GAGC's 49% share of SBD's net income, calculated up to the date of such repurchase.

The Riverside Casino is a fully licensed entertainment facility consisting of a restaurant, nightclub and table games including Blackjack, Caribbean Stud Poker and Let it Ride. In addition to the Riverside Casino, SBD has a second undeveloped casino license and an 11,000 sq. ft. building on two acres of land.

Mr. Ross J. McLeod, President and CEO of Great Canadian Gaming Corporation stated, "Great Canadian has always been a company of vision. Our goal is to expand our success beyond BC's borders. There are many opportunities for expansion outside of the province and we are actively seeking out those areas where we can apply our proven expertise to new markets. This acquisition is the first step of our strategic plan to develop such markets."

Mr. Steven B. Dowen, President and CEO of SBD stated, "Our objective is to maximize the performance of the Riverside Casino and we believe that Great Canadian has the background and expertise to help us in this endeavour."

Great Canadian Gaming Corporation is the largest community-based gaming management company in British Columbia with six casinos and over 1000 employees. The Company is focused on improving profitability at its existing casino facilities and is pursuing its objective to become a fully licensed multi-jurisdictional gaming operator.

The Canadian Venture Exchange has not reviewed the contents of this release, and does not accept responsibility for the accuracy of the contents of this release.