Playboy bid for Greek gaming license accepted

Business Wire, Nov 7, 1995

CHICAGO--(BUSINESS WIRE)--Nov. 7, 1995--Playboy Enterprises, Inc. (PEI) today announced that the Greek government awarded its consortium a gaming license on the island of Rhodes.

The license provides PEI and its partners with a 12-year exclusive agreement for gaming rights on the island, which is one of Greece's most popular tourist destinations. The company said that it has an equity participation in the venture and that additionally it will receive a fee for marketing and for the use of the Playboy name and Rabbit Head logo.

As part of the agreement, the consortium will renovate Rhodes' historic Hotel des Roses into a mixed use facility that will include retail shops and restaurants as well as a casino. The Hotel des Roses is located on the water overlooking the Aegean Sea near the center of the city of Rhodes. The company said that renovation on the hotel will begin as soon as possible with a goal of opening the casino during next summer's tourist season.

The other participants in the successful bid, all local companies, are Michaniki S.A., a major construction company; the Commercial Bank of Greece, the country's second largest commercial bank; Theodore Charagionis, a real estate developer/architect; and Rose and Emmanuel Geronikolas, Rhodes-based hotel operators.

"We are very pleased that our group was awarded this opportunity," said Christie Hefner, chairman and chief executive officer of Playboy Enterprises, Inc. "Our goal is to create the kind of high-quality entertainment complex that will make this already popular tourist destination even more attractive to visitors. I am confident that our group offers the expertise to make this venture a success.

"From a strategic perspective, we see this an opportunity for PEI to re-enter gaming, a business in which we have a successful history and that is a logical extension of our franchise. We continue to look at similar gaming ventures in which we would work in partnership with strong local companies." -0-

Playboy Enterprises, Inc. is an international media and entertainment company that publishes Playboy magazine and related media, including newsstand specials and calendars; operates a direct marketing business, including the Critics' Choice Video, Collectors' Choice Music and Playboy catalogs; creates and distributes programming for domestic pay television, worldwide home video and international television; and markets the Playboy trademarks on apparel, accessories and products sold throughout the world.

CONTACT: Playboy Enterprises, Inc.

Martha Lindeman, 312-751-8000 x2650

312/440-5493, night line