Equus Gaming Company, L.P. Reports Restated Results of Operations For Six Months and Second Quarter Ended June 30, 2000 San Juan, Puerto Rico, Sept. 21 - Equus Gaming Company, L.P. (Nasdaq: EQUUS) (``The Company''), a publicly traded partnership with thoroughbred horse racing and entertainment interests in Latin America and the Caribbean, has filed an amended 10Q revising its operating results for the three and six months ended June 30, 2000. Equus operating results are attributed to the following racetracks: El Comandante in Puerto Rico; V Centenario ``Galapagos'' in the Dominican Republic; Presidente Remon in Panama (the host of the XXXII International Caribbean Classic in December of 1999); Los Comuneros in Medellin, Colombia. The Company restated the financial statements for the six months and quarter ended June 30, 2000 to correct information primarily related to: (1) reclassification of interest income of approximately $445,000 from other revenues to be netted with interest expense in the statement of operations; (2) increase the federal tax provision by approximately $40,000; (3) recomputation of currency translation adjustments for its Colombia operations. This adjustment increased the operating expense in the statement of operations by approximately $168,000; (4) recomputation of the minority interest to correct for currency translation adjustments not properly computed in this and prior quarters. These adjustments reduced the minority interest share of the loss to $193,000 for the six months ended June 30, 2000. The minority interest adjustment for the quarter ended June 30, 2000 increased the net loss absorbed by the Company. The following table summarizes the results of the restatement on operating results: Six Months Three Months June 30, 2000 June 30, 2000 As Previously As As Previously As Reported Restated Reported Restated Net loss $2,209,687 $2,812,949 $1,602,403 $2,205,665 Basic and diluted net loss per unit (0.26) (0.34) (0.19) (0.26) Based on the restated results of operations, Equus reported a net loss of $2.2 million, or net loss per unit of $(0.26), for the quarter ended June 30, 2000 as compared to a net loss of $490,000, or net loss per unit of $(0.06), for the quarter ended June 30, 1999. For the six months ended June 30, 2000, Equus had a net loss of $2.8 million, or net loss per unit of $(0.34), as compared to net income of $90,000, or net income per unit of $0.01, for the six months ended June 30, 1999. The net loss for the quarter, excluding the effect of the above changes to currency translation adjustments and minority interest, was primarily attributed to start-up and development of off-track agency operations and associated costs in Colombia, and to reduction in wagering commissions in the Dominican Republic and Puerto Rico, due to temporary suspension of simulcast (broadcast) of live races during the first quarter of year 2000 from Puerto Rico to the Dominican Republic. Commissions on wagering decreased by $133,000, or .8%, to $15,912,000 for the quarter ended June 30, 2000 as compared to $16,046,000 for the quarter ended June 30, 1999. For the six months ended June 30, 2000, commissions on wagering decreased by $927,000, or 2.8%, to $32,428,000 as compared to $33,355,000 for the six months ended June 30, 1999. Total expenses during the three and six months ended June 30, 2000 increased by $1.3 million and $1.6 million, respectively, as compared to the same periods in 1999. The increase in expenses was primarily attributed to operating expenses relating to marketing/satellite expenses for the planning, engineering and startup expenses on the wagering system and leased satellite time not yet utilized for the new video and data telecommunication (VSAT) system. The VSAT system is expected to be installed during the third quarter of year 2000. These start-up expenses are expected to be recovered once the new VSAT system is operational. The Company is moving ahead to establish the new VSAT system during the next 12 months throughout its extensive off-track betting network in all of its operations. The Company has completed the communication center (HUB) at El Comandante. The financing of the new VSAT system is in process of being completed during the coming weeks. The Company's service subsidiaries, Satellite Services International, Inc. (SSI) and Agency Betting Network, Inc. (ABN) will carry out the development and installation of the high-tech satellite communication system throughout the Company's off track betting network which currently exceed 1,400 agencies, and are projected to increase to more than 2,000 by end of 2001. For the second quarter ended June 30, 2000 the EBITDA of Equus was $ 1.3 million compared with an EBITDA of $2 million for the same quarter in 1999. For the six months ended June 30, 2000 Equus' EBITDA was $4.0 million as compared with an EBITDA of $5.8 for the same period in 1999. In Puerto Rico, a new 10- year contract expiring on December 31, 2010 was signed on July 1, 2000 with the Horseowners' Association. The contract leaves the distribution of the ``Take'' or commissions on wagering at the same 50% split between the Horseowners and El Comandante. The contract also provides for: (1) three imported races per live racing day, (2) increase in the number of races per day from 7 to 8, (3) guarantees a minimum of at least 8 horses in each race, (4) also allows for additional simulcast (broadcast) of live races from Puerto Rico to other jurisdictions. As a result of the new contract with Horseowners, the handle revenues and share of wagering commissions at El Comandante is expected to increase substantially in future years. EQUUS GAMING COMPANY, L.P. Financial Highlights (Unaudited) (In Thousands, except per unit amounts) For the Three Months For the Six Months Ended June 30, Ended June 30, 2000 1999 2000 1999 (As Restated) (As Restated) Revenues: Commissions on wagering $15,912 $16,046 $32,428 $33,355 Net revenues from lottery 62 123 170 266 Gain on sale of assets 180 - 180 - Other revenues 661 522 1,659 2,056 16,815 16,691 34,437 35,677 Expenses: Payments to horseowners 7,662 8,033 15,632 16,426 Salaries, wages and benefits 2,562 2,561 5,010 5,474 Operating expenses 2,912 1,790 5,370 3,954 General and administrative 989 996 1,915 1,775 Marketing, television and satellite costs 1,371 1,282 2,500 2,212 EBITDA 1,319 2,029 4,010 5,836 Financial expenses 2,456 2,074 4,902 4,147 Depreciation, amortization 961 846 1,915 1,722 Loss from operations (2,098) (891) (2,807) (33) Income tax (provision) benefit (42) 9 (198) (330) Minority interest (65) 370 193 431 Extraordinary item - 22 - 22 Net income (loss) $(2,205) $(490) $(2,812) $90 Allocation of net income (loss) - General partner $(22) $(5) $(28) $1 Limited partner (2,183) (485) (2,784) 89 $(2,205) $(490) $(2,812) $ 90 Weighted average Units 8,365 8,401 8,365 7,142 Net income (loss) per Unit $(0.26) $(0.06) $(0.34) $0.01 End