SOURCE: International Thunderbird Gaming Corporation
December 5, 2001
SAN DIEGO, CA -- International Thunderbird Gaming Corporation (TSE:INB.) announces that it has published the following
open letter to Mexico's President Fox in yesterday's edition of the Washington, D.C. Roll Call, which is a publication
that every Congressional leader will review.
THIS IS A STRANGE WAY TO DO BUSINESS, MR. FOX
On August 15, 2000 International Thunderbird Gaming Corporation, a public company with offices in San Diego whose
shares are traded on the Toronto Stock Exchange received a letter from Mexico's Department of Internal Security
(Gobernacion) stating that a proposal to set up several facilities in Northern Mexico where individuals could play
video ``games of skill'' would not violate Mexico's laws against gambling. The letter, which is binding on the
Mexican Government, was based on the legal conclusion that skill games are a form of entertainment not prohibited
by law and are clearly distinguishable from games based on luck, such as slot machines, which are prohibited.
The letter was issued after Thunderbird presented Gobernacion with extensive information relative to its business
operations and specifically the type of video games that would be offered at its facilities.
Based on that letter, Thunderbird opened three facilities in Mexico, in Nuevo Laredo, Matamoros, and Reynosa, representing
an investment of well over $6 Million, and employing almost 200 people.
A month ago, after a brief administrative hearing in which the Director of Gaming for Gobernacion announced that
the 2000 letter was nothing more than a ``thesis,'' Mexican Federal police closed two of the facilities down and
are threatening to close the third. After making a major commitment to Mexico and operating precisely under the
terms of Gobernacion's letter, we have become the victims of the arbitrary and capricious behavior of the Mexican
Government's most powerful agency.
We at Thunderbird assumed that this was precisely the type of behavior that NAFTA would end, namely governmental
actions which are inconsistent from year to year, from Administration to Administration, and for which officials
do not take responsibility. We assumed that as a Canadian publicly traded company with United States based subsidiaries
doing business in the territory of one of our NAFTA partners, we would enjoy protections similar to those which
all companies expect in the administrative processes of the United States and Canada. We also assumed that the
Fox Administration, which took office on December 1, 2000 was bound by the legal decision of its predecessor absent
a change in the law, which is not the case here.
Were we wrong in our assumptions, Mr. Fox? We hope not. A year ago we were enthusiastic about doing business in
Mexico. Now, we wonder why anyone would want to do business in your country. As a former businessman you know that
economic success depends on the willingness of investors to take risks. Our investors are willing to take the risk
that our product might not prove as popular as we thought, or that the location we chose to do business in was
not as visible as we had hoped.
But we never assumed in the post-NAFTA era that doing business in Mexico meant taking the risk that the same government
agency that last year encouraged us to invest in Mexico would, without warning or justification, arbitrarily change
its mind.
As Congressional Leaders and the Administration debate ways to strengthen cooperation with Mexico not just in business,
but in areas relating as well to National security and mutual defense, they would be wise to look at how this dispute
is resolved. In making our initial decision to invest in Mexico, we trusted in the Mexican Government's written
word. Unfortunately, that has proven to be a serious mistake.
It may be that what has happened to us is a mix-up in the bureaucracy which can be resolved, and that the things
you have said, President Fox, about wanting American companies to invest in Mexico are true. We are respectfully
asking for your assistance in the hope that you will do the right thing, to show us Mexico is the country we thought
it was. You can clarify this point easily by using your authority to stop these actions and by ordering Gobernacion
to stand by its promises.
That would send the right message not just to us but to others who might see our experience as a good reason to
go somewhere else.
International Thunderbird Gaming Corporation is an owner and manager of international gaming facilities. Additional
information about the Company is available on its World Wide Web site at www.thunderbirdgaming.com.
On behalf of the Board of Directors,
Jack R. Mitchell
President and CEO
Cautionary Notice: This release contains certain forward-looking statements within the meaning of section 21E of
the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical
fact, included herein, including without limitation, statements regarding potential revenue and future plans and
objectives of the Company are forward-looking statements that involve risk and uncertainties. There can be no assurances
that such statements will prove to be accurate and actual results could differ materially from those anticipated
in such statements. Important factors that could cause actual results to differ materially from the Company's forward-looking
statements include competitive pressures, unfavorable changes in regulatory structures, and general risks associated
with business, all of which are disclosed under the heading ``Risk Factors'' and elsewhere in the Company's documents
filed from time-to-time with the TSE and other regulatory authorities.
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Contact:
International Thunderbird Gaming Corporation
Alex Winch, 416/712-1488 or 858/451-3637
info@thunderbirdgaming.com
or
Mexico Legal Counsel
Luis Ruiz de Velasco at Baker & Mckenzie, 52/555-279-2900
luis.ruiz-de.velasco@bakernet.com
or
Mexico Media Relations
Hugo Sherrer, 52/555-629-9903
bicigon@netservice.com.mx
or
Political Strategist
Evan Migdail, 202/371-6056
emmigdail@verner.com