Company Press Release: American Bingo
February 15, 2000
AUSTIN, TX -- American Bingo (Nasdaq SmallCap: BNGO) announces that it has obtained a lease to develop a new bingo
hall in southeast Montgomery, Alabama. This will be the Company's second bingo hall in Montgomery. The existing
bingo hall is located in northeast Montgomery.
The space is approximately 20,000 SF and will enable the Company to incorporate new design concepts to differentiate
its product from competitive offerings. The new bingo hall's location in southeast Montgomery is expected to have
minimal cannibalistic impact upon the Company's existing hall in northeast Montgomery.
Planning on the new bingo hall will begin immediately with design expected to be completed within one month. Construction
is anticipated to be completed within ninety days of examining competitive bids and awarding a construction contract.
The bingo hall will open immediately upon completion and is expected to deliver stable financial results within
twelve months of its opening.
In addition to the new Montgomery location, American Bingo will shortly finance its plans for a new bingo hall
in Centre Point, Alabama -- a suburb of Birmingham with an advantageous bingo regulatory climate. This bingo hall
will be developed concurrently with the new Montgomery bingo hall and will be completed shortly after the new Montgomery
hall. A future announcement will address the specifics of this new endeavor.
In commenting upon American Bingo's plans, Jeffrey L Minch, the President of American Bingo, said:
``These two new bingo halls are an excellent example of the refocusing of American Bingo's energies on its core
competency -- the development and management of charitable bingo halls. They represent a logical extension of our
intimate market knowledge, the leveraging of existing management talent at minimal marginal cost and the embrace
of prudent, quantifiable risk to create substantial financial returns.
``We are excited about the opportunity to simultaneously support deserving Alabama charities in their noble crusades
and to deliver a profit to our shareholders.
``These two new bingo halls will enable us to harness our creativity to develop a more appealing and attractive
bingo hall. This will be the first time in some great while that American Bingo has been able to inject positive
energy into its product offerings and customer relationships.
``This action is consistent with the new strategic direction that I have planned for the Company since becoming
its President late last year. The Company is ready to go back on the offensive and grow. I am looking forward to
the challenge.''
The attainment of participating charities to play at both halls is substantially complete. Concurrent with the
completion of design and the solicitation of contractors, the Company will obtain financing for both of the new
halls from financial institutions that have previously expressed interest.
American Bingo manages a diverse portfolio of twenty charitable bingo halls in Texas (11), Alabama (3) and South
Carolina (6). The charitable bingo industry is a $7 billion market in the United States.
Until the recent South Carolina Supreme Court decision declaring the impending 2 November 1999 Referendum unconstitutional,
effectively outlawing video gaming in South Carolina as of 30 June 2000, the Company also operated approximately
800 video gaming machines located exclusively in South Carolina. The Company will continue to operate these video
gaming machines until 30 June 2000 or until it is no longer profitable.
American Bingo is committed to growing its business through acquisition and the selective ``de novo'' development
of charitable bingo balls in markets in which it currently operates.
Except for historical information contained herein, certain matters set forth in this press release are ``forward-looking
statements'' within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to substantial
risks and uncertainties, including government regulation, taxation, competition, market risks, customer attendance,
volatile customer spending patterns, general economic conditions and other risks detailed in the Company's Securities
and Exchange Commission filings and reports. Actual results may be materially different from those expressed or
implied by these ``forward-looking statements.''
SOURCE: American Bingo