Century Casinos Reports Q3 2008 Results

November 10, 2008

COLORADO SPRINGS, Colorado, November 10 /PRNewswire/ -- Century Casinos, Inc. (Nasdaq: CNTY; Vienna Stock Exchange) reported today the financial results for the three and nine months ended September 30, 2008.

(All currency is in USD unless otherwise noted)

Third Quarter 2008

For the third quarter of 2008, net operating revenue was $21,861,000 and consolidated Adjusted EBITDA* was $4,906,000. This represents a 12% decrease in net operating revenue over the same quarter of last year ($24,724,000 in the third quarter of 2007) and a 16% decrease in consolidated Adjusted EBITDA* ($5,875,000 in the third quarter of 2007). Declines in net operating revenue at our properties in Colorado and Caledon, South Africa were partially offset by an increase in net operating revenue at the Company's properties in Edmonton, Canada and Newcastle, South Africa.

The Company reported a net loss of $14,198,000, or ($0.60) per basic and fully diluted share for the third quarter of 2008. Goodwill impairments and a valuation allowance established for U.S. deferred tax assets resulted in a reduction of $15,378,000, or $0.65 per basic and fully diluted share, to net earnings. Net earnings for the third quarter of 2007 were $1,949,000, or $0.08 per basic and fully diluted share.

In light of the deterioration of the U.S. and Colorado economies, the Company decided to take a conservative approach and has written-off the goodwill of the two Colorado properties. Also, because of the current difficult economic environment in the U.S. and Colorado, the Company considered it prudent to put the U.S. deferred tax asset into a reserve (valuation allowance), which may still be applied against future taxable income.

Nine months ended September 30, 2008

For the first nine months of 2008, net operating revenue was $64,387,000 and consolidated Adjusted EBITDA* was $13,849,000. This represents a 6% decrease in net operating revenue over the same period of last year ($68,458,000 in the first nine months of 2007) and a 13% decrease in consolidated Adjusted EBITDA* ($15,863,000 in the first nine months of 2007). Declines in net operating revenue at our properties in Colorado, particularly at Womacks, and a decline in the average exchange rate between the U.S. dollar and South African rand ("rand") were partially offset by an improvement in net operating revenue at the Company's property in Edmonton.

The Company reported a net loss of $12,822,000, or ($0.55) per basic and fully diluted share for the nine months ended September 30, 2008. Goodwill impairments and a valuation allowance established for U.S. deferred tax assets resulted in a reduction of $15,378,000, or $0.66 per basic and fully diluted share, to net earnings. Net earnings for the first nine months of 2007 were $4,532,000, or $0.19 per fully diluted share ($0.20 per basic share).

Property Results

Century Casino & Hotel (Edmonton, Alberta, Canada) - Net operating revenue at the Century Casino & Hotel in Edmonton increased 14.7% to $5,656,000 for the third quarter of 2008 compared to $4,930,000 for the third quarter of 2007. Adjusted EBITDA* was $2,129,000 for the third quarter of 2008 and $1,503,000 for the third quarter of 2007, an increase of 41.7%. In the second half of 2007, the Company converted a dinner theater to a showroom venue that has drawn better attendance. The Alberta Gaming and Liquor Commission increased the number of slot machines at the casino from 600 to 650 in September 2007. In addition, the Company introduced 24-hour poker at the casino during the fourth quarter of 2007. All of these factors have led to additional play at the casino.

Net operating revenue at the Century Casino & Hotel in Edmonton increased 25.4% to $17,008,000 for the nine months ended September 30, 2008 compared to $13,562,000 for the nine months ended September 30, 2007. Adjusted EBITDA* was $6,319,000 for the nine months ended September 30, 2008 compared to $3,651,000 in the same 2007 period, a 73.1% increase.

Womacks Casino (Cripple Creek, Colorado, USA) - Net operating revenue at Womacks Casino in Cripple Creek, Colorado decreased 38.4% to $3,086,000 for the third quarter of 2008 from $5,011,000 for the third quarter of 2007. Gaming revenue in the Cripple Creek market as a whole declined 7.0% during this period compared to a 38.3% decline at Womacks. Management attributes this to a decline in consumer discretionary income, increased fuel prices and a smoking ban that went into effect on January 1, 2008. In addition, management believes that Womacks lost a significant amount of its customers due to a renovation that began during the fourth quarter of 2007 and continued through the first quarter of 2008. Finally, in late May 2008, a new larger casino opened in Cripple Creek. The Company is reviewing strategies to improve revenue at Womacks. The Company has replaced the property manager and reduced staffing levels at the casino. As a result of lower gaming revenue at Womacks, we recorded a $7.2 million impairment of goodwill at this property for the three months ended September 30, 2008. Womacks' Adjusted EBITDA* for the third quarter of 2008 was $616,000 compared to $1,832,000 in the third quarter of 2007, a decrease of 66.4%. The decrease in Adjusted EBITDA* is due to the decline in revenue, which management believes was a result of the above mentioned factors.

Womacks' net operating revenue decreased 34.7% to $8,827,000 for the nine months ended September 30, 2008 from $13,510,000 for the nine months ended September 30, 2007. Gaming revenue in the Cripple Creek market as a whole declined 9.0% compared to a 33.2% decline at Womacks. Womacks' Adjusted EBITDA* for the nine months ended September 30, 2008 was $1,328,000 compared to $4,804,000 in the same 2007 period. The decrease in Adjusted EBITDA* is primarily due to the decline in revenue.

Century Casino and Hotel (Central City, Colorado, USA) - Net operating revenue at the Century Casino and Hotel in Central City decreased 21.8% to $4,655,000 for the third quarter of 2008 compared to $5,954,000 reported for the third quarter of 2007. Adjusted EBITDA* for the Century Casino & Hotel in Central City for the third quarter of 2008 decreased to $1,184,000 compared to $1,769,000 in the third quarter of 2007, a 33.1% decrease. The decrease in Adjusted EBITDA* is primarily due to a decrease in gaming revenue, the direct result of a decline in the Central City market as a whole of 20.1% during this period. As a result of lower gaming revenue at the Century Casino and Hotel in Central City, we recorded a $2.1 million impairment of goodwill at this property for the three months ended September 30, 2008.

Net operating revenue at the Century Casino and Hotel in Central City was $13,679,000 for the nine months ended September 30, 2008 compared to $15,529,000 for the nine months ended September 30, 2007, a decrease of 11.9%. Gaming revenue in the Central City market as a whole decreased 20.3% during this period. Adjusted EBITDA* for the Century Casino & Hotel in Central City for the nine months ended September 30, 2008 was $3,235,000 compared to $3,902,000 in the same 2007 period, a decrease of 17.1%. The decrease in Adjusted EBITDA* is primarily due to the decline in revenue.

On December 31, 2007, the Company acquired the remaining 35% of all issued and outstanding partnership units from the minority investor in its casino in Central City, Colorado. The Company now recognizes 100% of the casino's net income or losses.

The Caledon Hotel, Spa and Casino (Caledon, South Africa) - Net operating revenue at the Caledon Hotel, Spa and Casino decreased 12% to $3,988,000 for the third quarter of 2008 compared to $4,526,000 reported for the third quarter of 2007, primarily due to a decline in the average exchange rate between the U.S. dollar and the rand and lower customer attendance. Net operating revenue in rand decreased 4.7% to ZAR 31,000,000 for the third quarter of 2008 from ZAR 32,519,000 for the third quarter of 2007. Our market share of the Western Cape gaming revenue declined from 5.1% for the third quarter of 2007 to 4.8% for the third quarter of 2008. As Caledon is located approximately 60 miles from Cape Town, management believes that rising fuel prices throughout 2008 have led local patrons from Cape Town to gamble in Cape Town as opposed to traveling to our casino. The Caledon Hotel, Spa and Casino's Adjusted EBITDA* for the third quarter of 2008 was $1,263,000 compared to $1,761,000 in the third quarter of 2007, a decrease of 28.3%. The decrease in Adjusted EBITDA* is primarily due to the decline in the average exchange rate and in revenue.

The Caledon Hotel, Spa and Casino's net operating revenue was $12,277,000 for the nine months ended September 30, 2008 compared to $13,324,000 for the nine months ended September 30, 2007, a decrease of 7.9%. The decrease is primarily due to the decline in the average exchange rate between the U.S. dollar and the rand and lower customer attendance. In rand, net operating revenue at Caledon was ZAR 94,312,000 for the nine months ended September 30, 2008 compared to ZAR 95,213,000 for the nine months ended September 30, 2007, a decrease of 0.9%. Our market share of the Western Cape gaming revenue declined from 5.0% for the nine months ended September 30, 2007 to 4.7% for the nine months ended September 30, 2008. As mentioned above, management believes that rising fuel prices are causing local patrons to gamble in Cape Town as opposed to traveling to our casino. The Caledon Hotel, Spa and Casino's Adjusted EBITDA* for the nine months ended September 30, 2008 was $4,147,000 compared to $5,010,000 in the same 2007 period, a decrease of 17.2%. The decrease in Adjusted EBITDA* is primarily due to the decline in the average exchange rate and in revenue.

Century Casino and Hotel (Newcastle, South Africa) - Net operating revenue at the Century Casino and Hotel in Newcastle increased 5% to $3,023,000 for the third quarter of 2008 compared to $2,885,000 reported for the third quarter of 2007, primarily due to increased attendance offset by a decline in the average exchange rate between the U.S. dollar and the rand. Management believes that attendance increased at the casino due to increased marketing efforts and special promotions. Net operating revenue in rand at the Century Casino and Hotel in Newcastle increased 15% to ZAR 23,493,000 for the third quarter of 2008 from ZAR 20,508,000 for the third quarter of 2007. Adjusted EBITDA* at the Century Casino and Hotel in Newcastle for the third quarter of 2008 was $1,044,000 compared to $628,000 for the third quarter of 2007,a 66.2% increase. Our market share of the KwaZulu-Natal gaming revenue increased from 3.4% for the three months ended September 30, 2007 to 3.6% for the three months ended September 30, 2008.

Net operating revenue at the Century Casino and Hotel in Newcastle increased slightly to $8,622,000 for the nine months ended September 30, 2008 compared to $8,595,000 for the nine months ended September 30, 2007. In rand, net operating revenue at the Century Casino and Hotel in Newcastle increased 8.0% to ZAR 66,351,000 for the nine months ended September 30, 2008 from ZAR 61,408,000 for the nine months ended September 30, 2007. Adjusted EBITDA* at the Century Casino and Hotel in Newcastle for the nine months ended September 30, 2008 was $2,794,000 compared to $2,601,000 in the same 2007 period, a 7.4% increase. The increase in Adjusted EBITDA* is primarily due to a decline in general and administrative expenses at the property.

Other Operations - The Company's other operations, which include the Century Casino Millennium in Prague and the Company's ship-based casinos, contributed net operating revenue of $1,453,000 and Adjusted EBITDA* of $177,000 for the third quarter of 2008 compared to net operating revenue of $1,375,000 and Adjusted EBITDA* of $206,000 for the third quarter of 2007. These operations contributed net operating revenue of $3,971,000 and $3,888,000 for the nine months ended September 30, 2008 and 2007, respectively, and contributed Adjusted EBITDA* of $356,000 and $479,000 for the nine months ended September 30, 2008 and 2007, respectively. The decrease in Adjusted EBITDA* is primarily due to increased professional fees and payroll at these operations.

Corporate - Corporate operations reported negative Adjusted EBITDA* of $1,507,000 for the third quarter of 2008 compared to negative Adjusted EBITDA* of $1,824,000 for the third quarter of 2007. The increase in Adjusted EBITDA* is primarily due to a decrease in general and administrative expenses of $265,000 and the recognition of an additional $181,000 of equity earnings from our investment in Casinos Poland, offset by a decline in foreign currency gains recognized period over period of $84,000. We acquired a 33.3% interest in Casinos Poland in March 2007.

Corporate operations reported negative Adjusted EBITDA* of $4,330,000 for the nine months ended September 30, 2008 compared to negative Adjusted EBITDA* of $4,584,000 for the nine months ended September 30, 2007. The increase in Adjusted EBITDA* is due to the recognition of an additional $675,000 of equity earnings from our investment in Casinos Poland and a decrease in general and administrative expenses of $408,000, offset by a decrease in foreign currency gains recognized period over period of $789,000.

For the three months ended September 30, 2008, we reserved approximately $6.0 million in U.S. deferred taxes. If we conclude at a later date that the realization of these deferred taxes is more likely than not, we will reduce the valuation allowance as appropriate.

The Company will post a copy of the Form 10-Q filed with the SEC for the third quarter 2008 on its website at http://www.cnty.com/corporate/investor/sec-filings/ on Monday, November 10, 2008.

On Monday, November 10, 2008, Century Casinos will host its Q3 2008 Earnings Conference Call, at 10:30am MST; 6:30pm CET respectively. US domestic participants please dial +1-800-894-5910; all other international participants please use +1-785-424-1052 to dial in. Participants may also listen to the call live or obtain a recording of the call on our website at http://www.cnty.com/corporate/investor/financial-results/.

* See discussion and reconciliation of Adjusted EBITDA below.

    
    CENTURY CASINOS, INC. AND SUBSIDIARIES
    FINANCIAL INFORMATION - US GAAP BASIS

                              Century Casinos, Inc.
               Condensed Consolidated Statements of Operations (Unaudited)
                  (Amounts in thousands, except for share information)

                             For the Three Months     For the Nine Months
                             Ended September 30,      Ended September 30,
                             2008         2007         2008         2007

    Operating Revenue:
      Gaming               $19,816      $23,163      $58,753      $64,541
      Hotel, food and
       beverage              3,729        3,479       10,390        9,325
      Other                    581          550        1,659        1,489
        Gross revenue       24,126       27,192       70,802       75,355
      Less promotional
       allowances            2,265        2,468        6,415        6,897
        Net operating
         revenue            21,861       24,724       64,387       68,458

    Operating Costs and Expenses:
      Gaming                 8,289        9,222       24,618       25,790
      Hotel, food and
       beverage              2,827        2,802        7,864        7,927
      General and
       administrative        6,316        7,239       19,888       20,024
      Impairments and other
       write-offs,
       net of recoveries     9,357            9        9,357           34
      Depreciation           2,369        1,987        6,945        6,310
        Total operating
         costs and expenses 29,158       21,259       68,672       60,085
    Earnings from Equity
     Investment                218           37          766           91
    (Loss) earnings from
     Operations             (7,079)       3,502       (3,519)       8,464

    Non-Operating Income
     (Expense):
      Interest income           37           85          162          802
      Interest expense      (1,197)      (1,649)      (4,106)      (5,280)
      Other (expense)
       income, net            (71)         (73)          108          714
        Non-operating
         (expense), net     (1,231)      (1,637)      (3,836)      (3,764)
    (Loss) Earnings before
     Income Taxes,
     Minority Interest
     and Preferred
     Dividends              (8,310)       1,865       (7,355)       4,700
      Provision for income
       taxes                 5,710           27        5,006          655
    (Loss) Earnings before
     Minority Interest
     and Preferred
     Dividends             (14,020)       1,838      (12,361)       4,045
      Minority interest
       in subsidiary
       losses, net            (131)         170         (311)         822
      Preferred dividends
       issued by subsidiary    (47)         (59)        (150)        (335)
    Net (Loss) Earnings   $(14,198)      $1,949     $(12,822)      $4,532

    (Loss) Earnings Per Share:
      Basic                 $(0.60)       $0.08       $(0.55)       $0.20
      Diluted               $(0.60)       $0.08       $(0.55)       $0.19

    Weighted Average Shares
     Outstanding:
      Basic             23,522,763   23,051,067   23,432,279   23,043,351
      Diluted           23,526,305   23,833,498   23,541,985   23,904,861

    
    CENTURY CASINOS, INC. AND SUBSIDIARIES
    FINANCIAL INFORMATION - US GAAP BASIS

                              Century Casinos, Inc.
                 Condensed Consolidated Balance Sheets (Unaudited)
                               (Amounts in thousands)

                                                  September 30,   December 31,
                                                      2008           2007
    Assets
      Current Assets                                 $11,622        $21,109
      Other Assets                                   149,999        176,974
      Total Assets                                  $161,621       $198,083

    Liabilities and Shareholders' Equity
      Current Liabilities                            $21,351        $23,903
      Non-Current Liabilities                         45,119         62,191
      Shareholders' Equity                            95,151        111,989
      Total Liabilities and Shareholders' Equity    $161,621       $198,083



    CENTURY CASINOS, INC. AND SUBSIDIARIES
    SUPPLEMENTAL INFORMATION

                              Century Casinos, Inc.
                  Net Operating Revenue by Property (Unaudited)
                              (Amounts in thousands)

                            For the Three Months      For the Nine Months
                             Ended September 30,      Ended September 30,
                             2008         2007        2008          2007

    Century Casino & Hotel,
     Edmonton               $5,656       $4,930      $17,008      $13,562
    Womacks Casino & Hotel,
     Cripple Creek           3,086        5,011        8,827       13,510
    Century Casino & Hotel,
     Central City            4,655        5,954       13,679       15,529
    Caledon Hotel, Spa &
     Casino                  3,988        4,526       12,277       13,324
    Century Casino & Hotel,
     Newcastle               3,023        2,885        8,622        8,595
    Century Casino Prague &
     Cruise Ships            1,453        1,375        3,971        3,888
    Corporate                    -           43            3           50
      Consolidated net
       operating revenue   $21,861      $24,724      $64,387      $68,458


    
                              Century Casinos, Inc.
                  Adjusted EBITDA Margins** by Property (Unaudited)

                             For the Three Months      For the Nine Months
                              Ended September 30,      Ended September 30,
                              2008         2007         2008         2007
    Century Casino & Hotel,
     Edmonton                  38%          30%          37%          27%
    Womacks Casino & Hotel,
     Cripple Creek             20%          37%          15%          36%
    Century Casino & Hotel,
     Central City              25%          30%          24%          25%
    Caledon Hotel, Spa &
     Casino                    32%          39%          34%          38%
    Century Casino & Hotel,
     Newcastle                 35%          22%          32%          30%
    Century Casino Prague &
     Cruise Ships              12%          15%           9%          12%
    Corporate                    -            -            -            -
    Consolidated Adjusted
     EBITDA Margin**           22%          24%          22%          23%



    CENTURY CASINOS, INC. AND SUBSIDIARIES
    SUPPLEMENTAL INFORMATION

                              Century Casinos, Inc.
            Reconciliation of Adjusted EBITDA* by Property (Unaudited)
                  For the Three Months Ended September 30, 2008
                              (Amounts in thousands)

                                        Cripple      Central
                           Edmonton     Creek         City         Caledon

    Net Earnings            $1,006     $(7,151)    $ (2,140)         $560
    Minority Interest            -            -            -            -
    Interest Income            (2)            -            -          (9)
    Interest Expense           348         (21)          462          138
    Income Taxes               414           51         (22)          247
    Depreciation               363          494          758          327
    Stock Compensation           -            -            -            -
    Impairments and other
     write-offs, net of
     recoveries                  -        7,233        2,124            -
    Loss on Disposition of
     Fixed Assets                -           10            2            -
    Adjusted EBITDA*        $2,129         $616       $1,184       $1,263

                                          Prague
                                         & Cruise
                            Newcastle     Ships     Corporate      Total

    Net Earnings              $362          $59      $(6,894)    $(14,198)
    Minority Interest           91            -           40          131
    Interest Income             (9)         (13)          (4)         (37)
    Interest Expense           179            -           91        1,197
    Income Taxes               188            -        4,832        5,710
    Depreciation               233          114           80        2,369
    Stock Compensation           -            -          348          348
    Impairments and other
     write-offs, net of
     recoveries                  -            -            -        9,357
    Loss on Disposition of
     Fixed Assets                -           17            -           29
    Adjusted EBITDA*        $1,044        $ 177      $(1,507)      $4,906

    
                              Century Casinos, Inc.
            Reconciliation of Adjusted EBITDA* by Property (Unaudited)
                  For the Three Months Ended September 30, 2007
                              (Amounts in thousands)

                                         Cripple       Central
                            Edmonton      Creek         City       Caledon

    Net Earnings              $534         $908         $312         $958
    Minority Interest            -            -         (224)           -
    Interest Income            (13)          (3)          (6)         (21)
    Interest Expense           373          (28)         734          176
    Income Taxes               266          556          191          319
    Depreciation               347          399          762          329
    Stock Compensation           -            -            -            -
    Impairments and other
     write-offs, net of
     recoveries                  -            -            -            -
    (Gain) Loss on disposition
     of fixed assets            (4)           -            -            -
    Other                        -            -            -            -
    Adjusted EBITDA*        $1,503       $1,832       $1,769       $1,761

                                          Prague
                                         & Cruise
                            Newcastle      Ships    Corporate       Total

    Net Earnings              $275          $75      $(1,113)      $1,949
    Minority Interest            7            -           47         (170)
    Interest Income             (5)          (7)         (30)         (85)
    Interest Expense           183            -          211        1,649
    Income Taxes               129            3       (1,437)          27
    Depreciation                30           55           65        1,987
    Stock Compensation           -            -          430          430
    Impairments and other
     write-offs, net of
     recoveries                 (3)          12            -            9
    (Gain) Loss on disposition
     of fixed assets             6           68            3           73
    Other                        6            -            -            6
    Adjusted EBITDA*          $628        $ 206      $(1,824)      $5,875


    
    CENTURY CASINOS, INC. AND SUBSIDIARIES
    SUPPLEMENTAL INFORMATION

                              Century Casinos, Inc.
            Reconciliation of Adjusted EBITDA* by Property (Unaudited)
                   For the Nine Months Ended September 30, 2008
                              (Amounts in thousands)

                                        Cripple      Central
                           Edmonton      Creek        City        Caledon

    Net Earnings            $2,939      $(7,208)    $ (2,554)      $1,893
    Minority Interest            -            -            -            -
    Interest Income            (17)           -            -          (50)
    Interest Expense         1,059          (69)       1,695          445
    Income Taxes             1,258           17         (299)         849
    Depreciation             1,080        1,355        2,267          976
    Stock Compensation           -            -            -            -
    Impairments and other
     write-offs, net of
     recoveries                  -        7,233        2,124            -
    Loss on Disposition
     of Fixed Assets             -            -            2           34
    Adjusted EBITDA*        $6,319       $1,328       $3,235       $4,147

                                          Prague
                                         & Cruise
                            Newcastle      Ships    Corporate       Total

    Net Earnings              $914          $25      $(8,831)    $(12,822)
    Minority Interest          188            -          123          311
    Interest Income            (38)         (30)         (27)        (162)
    Interest Expense           573            -          403        4,106
    Income Taxes               462            3        2,716        5,006
    Depreciation               695          337          235        6,945
    Stock Compensation           -            -        1,045        1,045
    Impairments and other
     write-offs, net of
     recoveries                  -            -            -        9,357

    Loss on Disposition of
     Fixed Assets                -           21            6           63
    Adjusted EBITDA*        $2,794         $356      $(4,330)     $13,849


    
                              Century Casinos, Inc.
            Reconciliation of Adjusted EBITDA* by Property (Unaudited)
                   For the Nine Months Ended September 30, 2007
                              (Amounts in thousands)

                                        Cripple       Central
                          Edmonton       Creek         City       Caledon

    Net Earnings            $1,138       $2,255         $307       $2,337
    Minority Interest            -            -       (1,149)           -
    Interest Income            (57)          (8)          (6)         (83)
    Interest Expense         1,031          (10)       2,389          545
    Income Taxes               586        1,383          188        1,216
    Depreciation               954        1,183        2,173          973
    Stock Compensation           -            -            -            -
    Impairments and other
     write-offs, net of
     recoveries                  -            -            -           28
    (Gain) Loss on disposition
     of fixed assets            (1)           1            -           (6)
    Other                        -            -            -            -
    Adjusted EBITDA*        $3,651       $4,804       $3,902       $5,010

                                          Prague
                                         & Cruise
                            Newcastle      Ships    Corporate       Total

    Net Earnings              $748         $106      $(2,359)      $4,532
    Minority Interest          197            -          130         (822)
    Interest Income            (13)         (16)        (619)        (802)
    Interest Expense           552            -          773        5,280
    Income Taxes               424            2       (3,144)         655
    Depreciation               599          257          171        6,310
    Stock Compensation           -            -          458          458
    Impairments and other
     write-offs, net of
     recoveries                  6            -            -           34
    (Gain) Loss on disposition
     of fixed assets             6           67            6           73
    Other                       82           63            -          145
    Adjusted EBITDA*        $2,601         $479      $(4,584)     $15,863

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

* The Company defines Adjusted EBITDA as earnings before interest, income taxes, depreciation, amortization, minority interest, pre-opening expenses, non-cash stock based compensation charges, asset impairment costs, gains (losses) on disposition of fixed assets, discontinued operations and certain other one-time items. Intercompany transactions consisting primarily of management fees and interest, along with their related tax effects, are excluded from the presentation of net earnings and Adjusted EBITDA reported for each property. These adjustments have no effect on the consolidated results. Adjusted EBITDA is not considered a measure of performance recognized under accounting principles generally accepted in the United States of America. Management believes that Adjusted EBITDA is a valuable measure of the relative performance among its operating segments. The gaming industry commonly uses Adjusted EBITDA as a method of arriving at the economic value of a casino operation. Management uses Adjusted EBITDA to compare the relative operating performance of separate operating units by eliminating the above mentioned items associated with the varying levels of capital expenditures for infrastructure required to generate revenue, and the often high cost of acquiring existing operations. EBITDA (Earnings before interest, taxes, depreciation and amortization) is used by our lending institutions to gauge operating performance. The Company's computation of Adjusted EBITDA may be different from, and therefore may not be comparable to, similar measures used by other companies. Not all of the aforementioned benefits and costs occur in each reporting period, but have been included in the definition based on historic activity.

** The Company defines Adjusted EBITDA margin as Adjusted EBITDA divided by net operating revenue. Management uses this margin as one of several measures to evaluate the efficiency of the Company's casino operations.

About Century Casinos, Inc:

Century Casinos, Inc. is an international casino entertainment company that owns and operates the Womacks Casino and Hotel in Cripple Creek, Colorado, the Century Casino & Hotel in Central City, Colorado, the Century Casino & Hotel in Edmonton, Alberta, Canada, and the Century Casino Millennium in the Marriott Hotel in Prague, Czech Republic. The Company also operates casinos aboard the Silver Cloud and the vessels of Oceania Cruises. Through its subsidiary Century Casinos Africa (Pty) Limited, it owns and operates The Caledon Hotel, Spa & Casino near Cape Town, South Africa, as well as 60% of, and provides technical casino services to, Century Casino Newcastle, in Newcastle, South Africa. Furthermore, the Company's Austrian subsidiary, Century Casinos Europe GmbH, holds a 33.3% ownership interest in Casinos Poland Ltd, the owner and operator of seven full casinos and one slot casino in Poland. The Company continues to pursue other international projects in various stages of development.

For more information about Century Casinos, visit our new website at www.centurycasinos.com. Century Casinos' common stock trades on The NASDAQ Capital Market(R) and the Vienna Stock Exchange under the symbol CNTY.

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

This release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of the management of Century Casinos based on information currently available to management. Such forward-looking statements include, but are not limited to, statements regarding revenue growth, marketing efforts, progress at and plans for our casinos, gaming market growth, the impact of improvements at our properties, the impact of the Colorado law banning smoking in casinos and impact of economic downturn. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements include, among others, the risks described in the sections entitled "Risk Factors" under Item 1A in our Annual Report on Form 10-K filed on March 17, 2008 and under Part II. Item 1A of our Quarterly Report on Form 10-Q filed on November 10, 2008. Century Casinos disclaims any obligation to revise or update any forward-looking statement that may be made from time to time by it or on its behalf.