Holly Holdings announces global settlement between Country World Casinos and New Allied Development

Business Wire, May 30, 1997

BALA CYNWYD, PA.--(BUSINESS WIRE)--May 30, 1997--Holly Holdings Inc. (NASDAQ:HOPR, HOPRW; BSE:HOP, HOPP) today announced an agreement between its majority owned subsidiary, Country World Casinos Inc. and New Allied Development Corp.

Counsel for both sides are currently finalizing documents and formal closing is set for Monday, June 2.

The terms of the agreement call for a global settlement of all outstanding issues between the parties, including but not limited to, the dismissal of all federal and state litigation, the forgiveness of all indebtedness due from Country World to New Allied and the conversion, pursuant to its terms, of the Series A Preferred Stock held by New Allied into common stock of Country World.

William H. Patrowicz, president of Holly Holdings Inc. stated, "A three phase solution was required to allow the casino and hotel complex to be built. Phase one was to emerge from bankruptcy; phase two was to settle all issues with New Allied Development Corporation and phase three is to secure the financing. With phase one and two completed, we look forward to signing formal documents for the financing in the next few weeks so construction can begin at the earliest possible date. Negotiations for the financing have been ongoing during phase one and two and are substantially complete. A hospitality group and construction company have been chosen and negotiations are ongoing at this time."

Holly Holdings Inc., headquartered in Bala Cynwyd, has three wholly owned subsidiaries; Navtech Industries Inc. of Shiprock, N.M.; Nightlife Printing and Promotions Inc. and American Publishers Company Inc. of New Hyde Park, N.Y., as well as a majority owned subsidiary, Country World Casinos Inc. of Denver. Navtech Industries Inc. is a manufacturer and tester of electronic components for casino equipment, hotel equipment and signage. Nightlife Printing and Promotions Inc. is engaged in a color "print on demand" commercial offset printing business. American Publishers Company Inc. is a wholesaler, marketing educational products to schools and libraries throughout the United States. Country World Casinos Inc. is a development corporation, whose plan is to construct a casino in Black Hawk, Colo., as well as a hotel complex.

This press release contains forward-looking statements. All forward-looking statements involve risks and uncertainties, including, without limitation, the risks detailed in the Company's filings and reports with the Securities and Exchange Commission. Such statements are only predictions and actual events or results may differ materially from those projected.

CONTACT: Holly Holdings, Bala Cynwyd

William Patrowicz, 610/617-0400

or

Martin E. Janis & Company, Inc., Chicago

Elliott Jacobson, 312/943-1100