Press Release: Leisure Industries Corporation of America
August 22, 2002
LAS VEGAS, NV -- Leisure Industries Corporation of America (Nasdaq: LESR) yesterday announced that it has acquired
2,109 acres of land in northern Arizona, which it intends to develop and market as second home and vacation home
sites through its wholly-owned subsidiary, Leisure Homes Corporation. The land was purchased from Arizona Acreage,
L.L.C. for a combination of $250,000 cash and 540,416 shares of the Company’s common stock valued at $6.00 per
share for this transaction. Leisure Industries expects this property to provide inventory for the next three to
five years of operation. As part of this transaction, the Company has acquired the right of first refusal for participation
in the development of an additional 20,000 acres adjacent to these lots.
Leisure Industries is required to construct approximately 50 miles of basic roadway as part of the agreement. Construction
of the infrastructure is underway and the sale of parcels in one-acre increments is expected to begin November
1, 2002.
“The Company’s land sales revenue during the past year has been restricted by a lack of inventory. Land sales historically
contributes almost 30% of our revenues. The acquisition of this property provides us with inventory for our land
division for a minimum of three years. At an average sales price of $19,000 per acre, the site has the potential
to produce $40mm in gross revenues for the Company,” said Floyd W. Kephart, Chairman and CEO.
“Our long-term plan required us to make certain changes in our land sales practices as well as the kind of product
we provided to our customers. This property meets all of our criteria to develop a land program that is not constrained
by accessible inventory or a lack of development in the immediate proximity to the property,” said Kephart.
“Our goal was to provide our customers with recreational property where they could develop a leisure lifestyle
in the future. I believe we accomplished this for those customers fortunate enough to be able to obtain property
in this development,” continued Kephart.
Located off US 93, approximately midway between Las Vegas, NV and Kingman, AZ, the property is bordered by the
Lake Mead National Recreational Area. Improvements to US 93 between Phoenix and Hoover Dam are part of the CANAMEX
Corridor project. US 93 will be widened to four lanes and the construction of a bypass bridge around the dam is
slated for completion by 2008.
The Company announced on April 12, 2002, the launching of its new corporate identity with a name change to Leisure
Industries Corporation of America, subject to shareholder approval. Leisure Industries Corporation develops and
operates vacation ownership resorts, develops properties, and provides consumer financing to purchasers of vacation
ownership interests and land parcels through its wholly owned subsidiary, Leisure Homes Corporation. Leisure Industries
is headquartered in Las Vegas, Nevada and has properties in Nevada, New Jersey, Colorado, Florida and Hawaii.
This press release contains "forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties or
other factors which may cause actual results, performance or achievements of Leisure Industries (Mego Financial)
to be materially different from any future results, performance or achievements expressed or implied by such forward-looking
statements. Factors that might cause such a difference, include, but are not limited to, those discussed in the
Management's Discussion and Analysis of Financial Condition and Results of Operations in Mego Financial's Annual
Report on Form 10-KT for the year ended December 31, 2001, and in the Form 10-Q for the quarter ended June 30,
2002, and subsequent documents filed by Mego Financial Corp. with the Securities and Exchange Commission.
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Contact: Bethany Eppner Golin/Harris beppner@golinharris.com (212) 697-9191