23 September 2014 Court Judgment in a Tax Appeal Filed by Rhodes Casino S.A Queenco Leisure International Ltd. (the "Company"), the emerging markets entertainment center and casino developer and operator, announces that the Athens Administrative Court of Appeal (the "Court") has handed down its judgment concerning Rhodes Casino S.A.'s (the "Casino Rhodes ") appeal on a tax assessment in a total amount of approximately EUR 23 million (including interest and penalty), which was issued in 2005 with respect to the years 1999-2000 (the "Appeal") (For further information please see the Company's 2013 Annual Report). The Court upheld partially the Appeal and reduced the sum of the aforesaid tax assessment set by the Greek tax authorities to approximately EUR 5.4 million (including interest and penalty), of which an amount of EUR 1.45 million was deposited by Casino Rhodes, as a guarantee, with the Court when the Appeal was filed. As of this date, Casino Rhodes does not have the financial means required to pay the aforesaid sum (less the deposit). If Casino Rhodes does not meet its obligation to a consortium of banks, which provided a loan to it, amounted as of June 30, 2014, to a total of EUR 5.8 million, the Company and /or Y.Z. Queenco Ltd. (the "Y.Z.") may, jointly and severally, as the guarantors to the debts of Casino Rhodes to the consortium of banks, be required for the repayment of the aforesaid payment. As a result of the judgment, the Company is expected to record an expenditure of approximately EUR 5.4 million. The Court's judgment has not been officially served yet to Casino Rhodes and it is expected to be delivered in the next few weeks. If no other courses of action are to be found, Casino Rhodes is required to pay the aforesaid final tax assessment within 60 days as of the date such judgment is served to it. The managements of the Company and Y.Z., together with Greece legal counsels, have begun today to consider courses of action. The Company estimates that it may be possible to enter into a debts rescheduling arrangement in a manner which will allow Casino Rhodes to meet its obligations while continuing its current operation. It is hereby clarified that Casino Rhodes, as well as the Greek tax authorities, has the right to file an appeal to the Greek Supreme Court, but such appeal will not delay the execution of the said judgment. Queenco Leisure International Ltd. For further information about the Company please visit www.queenco.com or contact: Queenco Leisure International Ltd. Yariv Lerner, Chief Executive Officer T: +972 3 7566 555 רח' מנחם בגין 11 קומה 30 רמת גן, ישראל FLOOR RAMAT-GAN, ISRAEL 11 MENAHEM BEGIN ST. 30
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