New Horizon Kids Quest, Inc. Announces Agreement with Red Lake Gaming Enterprises and Seven Clans Thief River Falls Casino, Hotel, and Indoor Water Park

Business Wire, Dec 19, 2000

Business Editors

MINNEAPOLIS--(BUSINESS WIRE)--Dec. 19, 2000

New Horizon Kids Quest, Inc. (Nasdaq SmallCap: KIDQ) announced the signing of an agreement to provide a Kids Quest hourly child care center for the Seven Clans Casino, Hotel, and Indoor Water Park in Thief River Falls, Minnesota. The agreement calls for a 7,000 square-foot facility as part of a major expansion of the resort that includes a 151-room, all-suite hotel; a 40,000 square-foot indoor water park; three new restaurants; and a remodeled casino. Opening is expected in the spring of 2001.

Commenting on the agreement, New Horizon Kids Quest, Inc.'s President, Sue Dunkley, stated, "We are very pleased to have been selected by Red Lake Gaming Enterprises to be a part of the expansion of its Thief River Falls casino into a full-service family entertainment destination. In addition to providing traditional hourly child care, we will be developing a Kids Quest Adventure Club which will provide exciting water park and outdoor activities for children from ages six weeks to twelve years."

Marvin Hanson, Chief Operating Officer for Red Lake Gaming Enterprises, and Dan King, Tribal Treasurer, stated, "It is very important to the Tribe that we create a destination resort with high quality amenities for the entire family. We are very excited to have a company with the reputation for quality that Kids Quest has as part of our resort." Mr. Hanson stated, "We are confident that the very highest level of service and care will be provided for the parents and their children."

New Horizon Kids Quest, Inc. provides hourly child care at twenty-one Kids Quest locations in ten states, including three with supervised, non-violent video entertainment centers. The company also provides traditional child care at ten New Horizon Child Care locations in Boise, Idaho, and has added traditional care at its Mall of America location. The company also operates employee child care centers in Joliet, Illinois, for Empress Casino and the Mobil Oil Company; in Las Vegas, Nevada, at the Venetian Resort~Casino~Hotel; and in Morton, Minnesota, at Jackpot Junction Casino Hotel. Additionally, the company added employee child care in Marksville, Louisiana, at its Grand Casino Avoyelles location earlier this month.

The company's common stock trades on the Nasdaq SmallCap Market tier of the Nasdaq Stock Market under the symbol "KIDQ".

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by the company) may contain statements that are forward looking, such as statements relating to plans for future expansion and other business development activities, as well as other capital spending, financial sources, and the effects of regulation and competition. Such forward-looking information involves important risks and uncertainties that could significantly affect future results and, accordingly, such results may differ from those expressed in any forward-looking statement made by or on behalf of the company. These risks and uncertainties include, but are not limited to, those relating to development and construction activities, dependence on existing management and third party contracts, domestic or global economic conditions, changes in federal or state laws or the administration or enforcement of such laws, litigation or claims, as well as all other risks and uncertainties described in the company's filings.