Trans World Gaming Reports 12.5 percent gain in pro forma 1994 earnings per share

Business Wire, March 8, 1995

NEW YORK--(BUSINESS WIRE)--March 8, 1995--Trans World Gaming Corp. (NASDAQ NMS: IBET, IBETW) today reported pro forma net income for the year ended December 31, 1994, of $0.45 per share versus year- earlier pro forma earnings of $0.40 per share, an increase of 12.5 percent.

On a pro forma basis, 1994 net income was $1.1 million versus $1.0 million for 1993, and revenues rose 6.2 percent to $6.7 million from $6.3 million.

The pro forma results reflect Trans World Gaming's acquisition of the Woodlands Travel Plaza on October 18, 1994, during the company's development stage, its initial public offering December 15, 1994, and its acquisition of the Gold Nugget gaming facility December 23, 1994. The pro forma consolidated results give retroactive effect to the acquisitions and IPO as if they had occurred at the beginning of 1993 and 1994.

The company reported actual revenues of $509,000 and a net loss of $532,000, equal to $0.42 per share, including those businesses acquired during the fourth quarter.

R. Kenneth Merkey, chairman and chief executive officer, said the Gold Nugget continues to be one of the top revenue-producing video gaming parlors in Louisiana and is expected to be a strong contributor to Trans World Gaming's 1995 results, its first full year of operation as part of Trans World. In addition, he said, construction of a video gaming parlor at Woodlands, Trans World's travel plaza in DeRidder, Louisiana, is in the final phase.

Merkey noted that a previously announced letter of intent for the acquisition of Post Office Casino in Henderson, Nevada, had not led to a definitive agreement and negotiations were terminated.

"We continue to evaluate opportunities for Trans World Gaming to acquire and operate video-game casinos in neighborhood settings. As is demonstrated by our operations in Louisiana, our emphasis is on developing gaming locations that primarily serve local players," he said.

Trans World Gaming specializes in advanced-technology, machine- based games generally offered in small to medium-sized casinos and gaming parlors in neighborhood locations.

Trans World Gaming Corporation Financial Highlights

Pro Forma Consolidated Results(a)

Year Ended

December 31

1994 1993

Revenues $6,709,000 $6,319,000 Operating income 3,451,000 3,182,000 Pre-tax income 1,883,000 1,675,000 Net income $1,130,000 $1,005,000

Earnings per common share $0.45 $0.40

Weighted average common shares outstanding 2,544,285 2,544,285

(a) Pro forma consolidated results give retroactive effect to the acquisition of the Gold Nugget gaming facility and the Woodlands Travel Plaza as if they had occurred at the beginning of each period presented.

Actual Results(b)

Year Ended December 31, 1994

Revenues $509,000 Operating income (loss) (774,000) Pre-tax income (loss) (933,000) Net income (loss) $(532,000)

Earnings (loss) per common share $(0.42)

Weighted average common shares outstanding 1,274,000

(b) Actual audited results cover 12 months of Trans World Gaming Corporation as a development stage company, Gold Nugget operations from December 23, 1994, to December 31, 1994, and the Woodlands Travel Plaza from October 18, 1994, to December 31, 1994. -0-