Century Casinos, Inc. Announces Third Quarter 2011 Results

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COLORADO SPRINGS, Colo., Nov. 8, 2011 /CNW/ -- Century Casinos, Inc. (NASDAQ Capital Market® and Vienna Stock Exchange: CNTY) today announced its financial results for the three and nine months ended September 30, 2011.

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    Third Quarter 2011 Highlights

    --  Net operating revenue was $18.1 million, a 14% increase compared to
the
        three months ended September 30, 2010.
    --  Adjusted EBITDA* was $3.1 million, a 27% increase from the three
months
        ended September 30, 2010.
    --  Net earnings per share was $0.06 compared to $0.01 for the three
months
        ended September 30, 2010.


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                            For the Three Months            For the Nine
Months
                            --------------------           
-------------------
    Amounts in
     thousands, except
     share and per
     share data              Ended September 30,            Ended September
30,
    ------------------       -------------------           
-------------------
    Consolidated
     Results:                 2011         2010%               2011        
2010%
    ------------              ----         ----  Change        ----        
----  Change
                                                 ------                       
------
      Net operating
       revenue             $18,146      $15,984      14%    $53,263     
$45,061      18%
      -------------        -------      -------     ---     -------     
-------     ---
      Earnings from
       operations            1,548          744     108%      3,281       
1,433     129%
      -------------          -----          ---     ---       -----       
-----     ---
      Net earnings           1,423          321     343%      2,431         
191    1173%
      ------------           -----          ---     ---       -----         
---    ----
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    Adjusted EBITDA*        $3,081       $2,424      27%     $8,364      
$6,528      28%
    ----------------        ------       ------     ---      ------      
------     ---
    >>

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    Earnings per share:
    -------------------
      Basic                  $0.06        $0.01     500%      $0.10       
$0.01     900%
      -----                  -----        -----     ---       -----       
-----     ---
      Diluted                $0.06        $0.01     500%      $0.10       
$0.01     900%
      -------                -----        -----     ---       -----       
-----     ---
      Weighted-average
       common shares:
      ----------------
      Basic             23,877,362   23,678,795          23,715,224  
23,584,079
      -----             ----------   ----------          ----------  
----------
      Dilutive          24,191,252   23,851,110          24,015,139  
23,771,930
      --------          ----------   ----------          ----------  
----------



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"We are very pleased to report another quarter with growth in revenue, adjusted EBITDA and net earnings. Our strategies to continuously elevate the guest experience at our properties and to improve operating efficiencies are generating positive results. By leveraging management expertise across multiple properties in Colorado, USA and Alberta, Canada, we are starting to create synergies that should drive even higher levels of operational performance," said Erwin Haitzmann and Peter Hoetzinger, Co Chief Executive Officers of Century Casinos. "We remain focused on operational improvements and the pursuit of potential new opportunities to create additional value for shareholders," they continued.

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    Three and Nine Months Ended September 30, 2011 Results
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Net operating revenue increased by $2.2 million, or 13.5%, and $8.2 million, or 18.2%, for the three and nine months ended September 30, 2011 compared to the three and nine months ended September 30, 2010, respectively. Net operating revenue increased at all properties except Central City for the three months ended September 30, 2011 compared to the three months ended September 30, 2010. Net operating revenue increased at all properties for the nine months ended September 30, 2011 compared to the nine months ended September 30, 2010. Following is a summary of net operating revenue increases and decreases by property for the three and nine months ended September 30, 2011 compared to the three and nine months ended September 30, 2010, respectively:

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                                        Net Operating Revenue
                                   For the three        For the nine
                                      months               months
                                  ended September      ended September
                                        30,                30,
    Amounts in millions        Change  % Change   Change  % Change
    Century Casino & Hotel,
     Edmonton                    $0.6       10.6%   $1.6       10.2%
    -----------------------      ----       ----    ----       ----
    Century Casino, Calgary       0.5       24.5%    1.7       29.3%
    -----------------------       ---       ----     ---       ----
    Century Casino & Hotel,
     Central City                (0.1)     (2.0%)    0.4        3.3%
    -----------------------      ----     ------     ---        ---
    Century Casino & Hotel,
     Cripple Creek                0.5       16.5%    1.7       21.0%
    -----------------------       ---       ----     ---       ----
    Cruise Ships & Other          0.7       82.5%    2.8      138.8%
    --------------------          ---       ----     ---      -----


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Total operating costs and expenses increased by $1.6 million, or 10.8%, and $6.8 million, or 15.4%, for the three and nine months ended September 30, 2011 compared to the three and nine months ended September 30, 2010, respectively. Total operating costs increased at all of our properties for both the three and nine months ended September 30, 2011 compared to the three and nine months ended September 30, 2010. Following is a summary of total operating costs and expenses increases by property for the three and nine months ended September 30, 2011 compared to the three and nine months ended September 30, 2010, respectively:

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                                        Total Operating Costs
                                   For the three        For the nine
                                      months               months
                                  ended September      ended September
                                        30,                30,
    Amounts in millions        Change  % Change   Change  % Change
    Century Casino & Hotel,
     Edmonton                    $0.3        8.4%   $0.9        7.2%
    -----------------------      ----        ---    ----        ---
    Century Casino, Calgary       0.4       19.4%    1.8       31.0%
    -----------------------       ---       ----     ---       ----
    Century Casino & Hotel,
     Central City                 0.1        0.8%    0.5        4.3%
    -----------------------       ---        ---     ---        ---
    Century Casino & Hotel,
     Cripple Creek                0.3       11.2%    0.9       11.5%
    -----------------------       ---       ----     ---       ----
    Cruise Ships & Other          0.6       75.8%    2.5      130.2%
    --------------------          ---       ----     ---      -----
    Corporate                    (0.1)     (5.8%)    0.2        4.9%
    ---------                    ----     ------     ---        ---



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Net earnings increased by $1.1 million, or 343%, and $2.2 million, or 1173%, for the three and nine months ended September 30, 2011 compared to the three and nine months ended September 30, 2010, respectively. Net earnings increased at all of our properties except Central City for the three months ended September 30, 2011 compared to the three months ended September 30, 2010. Net earnings increased at all of our properties except for Central City and Calgary for the nine months ended September 30, 2011 compared to the nine months ended September 30, 2010. Following is a summary of net earnings increases and decreases by property for the three and nine months ended September 30, 2011 compared to the three and nine months ended September 30, 2010, respectively:

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                                            Net Earnings
                                   For the three        For the nine
                                      months               months
                                  ended September      ended September
                                        30,                30,
    Amounts in millions        Change  % Change   Change  % Change
    Century Casino & Hotel,
     Edmonton                    $0.4       49.4%   $0.9       38.5%
    -----------------------      ----       ----    ----       ----
    Century Casino, Calgary       0.2      162.2%   (0.1)    (74.7%)
    -----------------------       ---      -----    ----    -------
    Century Casino & Hotel,
     Central City                (0.1)    (19.9%)   (0.0)     (6.0%)
    -----------------------      ----    -------    ----     ------
    Century Casino & Hotel,
     Cripple Creek                0.1       57.1%    0.5      178.5%
    -----------------------       ---       ----     ---      -----
    Cruise Ships & Other          0.1      275.9%    0.3      311.7%
    --------------------          ---      -----     ---      -----




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    Property Results
    (in thousands)
    --------------
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                                          Adjusted                           
Adjusted
                      Net Operating               EBITDA*        Net Operating
EBITDA*
                         Revenue         ---------          Revenue         
---------
                         -------                            -------
                      For the Three    For the Three     For the Nine      For
the Nine
                          Months           Months            Months           
Months
                          Ended            Ended             Ended            
Ended
                      September       September      September        
September
                               30,              30,             30,           
30,
                               --              --             --              
--
                      2011    2010   2011      2010    2011    2010      2011 
2010
                      ----    ----   ----      ----    ----    ----      ---- 
----
    Century Casino
     & Hotel,
     Edmonton        5,852   5,291  1,936     1,693  17,791  16,147     5,939 
5,107
    Century
     Casino,
     Calgary         2,446   1,964     96       (90)  7,503   5,804       318 
62
    Century Casino
     & Hotel,
     Central City    4,754   4,849  1,010     1,283  13,674  13,231     2,919 
3,152
    Century Casino
     & Hotel,
     Cripple Creek   3,506   3,010    804       639   9,554   7,893     2,019 
1,322
    Cruise Ships &
     Other           1,588     870    223       113   4,741   1,986       768 
350
    Corporate            -       -   (988)   (1,214)      -       -    (3,599)
(3,465)
    Consolidated    18,146  15,984  3,081     2,424  53,263  45,061     8,364 
6,528
                    ======  ======  =====     =====  ======  ======     ===== 
=====



    Balance Sheet and Liquidity

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As of September 30, 2011, the Company had $21.3 million in cash and cash equivalents and $9.4 million in debt obligations on its balance sheet compared to $21.5 million in cash and cash equivalents and $13.5 million in debt obligations at December 31, 2010.

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    Conference Call Information

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Today the Company will post a copy of the Form 10-Q filed with the SEC for the third quarter of 2011 on its website at http://corporate.cnty.com/investor-relations/sec-filings/

Century Casinos will host its third quarter 2011 earnings conference call today at 10:00 am MST; 6:00 pm CET, respectively. U.S. domestic participants should dial 1-800-862-9098. For all other international participants please use +1-785-424-1051 to dial in. Participants may also listen to the call live or obtain a recording of the call on the Company's website at http://corporate.cnty.com/investor-relations/financial-results/

*See discussion and reconciliation of Non-GAAP financial measures in Supplemental Information below.

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    CENTURY CASINOS, INC. AND SUBSIDIARIES
    FINANCIAL INFORMATION - US GAAP BASIS
    -------------------------------------
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    <<
                                  For the three months     For the nine months
                                   ended September 30,     ended September 30,
    Amounts in
     thousands, except
     for per share
     information                      2011         2010     2011         2010
                                      ----         ----     ----         ----
    Operating revenue:
      Gaming                       $16,236      $14,348  $46,989      $40,169
      Hotel, bowling,
       food and beverage             3,152        2,789    9,536        8,311
      Other                            956          773    2,895        2,122
                                       ---          ---    -----        -----
               Gross revenue        20,344       17,910   59,420       50,602
    Less: Promotional
     allowances                     (2,198)      (1,926)  (6,157)      (5,541)
    Net operating
     revenue                        18,146       15,984   53,263       45,061
                                    ------       ------   ------       ------
    Operating costs
     and expenses:
      Gaming                         7,543        6,289   21,815       17,578
      Hotel, bowling,
       food and beverage             2,565        2,404    7,629        6,742
      General and
       administrative                5,213        4,986   16,429       15,082
      Depreciation                   1,526        1,529    4,832        4,542
                                     -----        -----    -----        -----
    Total operating
     costs and
     expenses                       16,847       15,208   50,705       43,944
                                    ------       ------   ------       ------
    Earnings from
     equity investment                 249          (32)     723          316
    Earnings from
     operations                      1,548          744    3,281        1,433
                                     -----          ---    -----        -----
    Non-operating
     income (expense):
      Interest income                    6           17       13           39
      Interest expense                (186)        (280)    (629)        (861)
      (Losses) gains on
       foreign currency
       transactions &
       other                           (27)          14      162           26
    Non-operating
     income (expense),
     net                              (207)        (249)    (454)        (796)
                                      ----         ----     ----         ----
    Earnings before
     income taxes                    1,341          495    2,827          637
    Income tax
     provision                         (82)         174      396          446
    Net earnings                    $1,423         $321   $2,431         $191
                                    ======         ====   ======         ====
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    Earnings per
     share:
      Basic                          $0.06        $0.01    $0.10        $0.01
                                     -----        -----    -----        -----
      Diluted                        $0.06        $0.01    $0.10        $0.01
                                     =====        =====    =====        =====




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    CENTURY CASINOS, INC. AND SUBSIDIARIES
    FINANCIAL INFORMATION - US GAAP BASIS
    -------------------------------------
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    Century Casinos, Inc.
    Condensed Consolidated Balance Sheets
    (Amounts in thousands)
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                                                   September     December
                                                       30,          31,
                                                         2011         2010
                                                         ----         ----
    Assets
    Current Assets                                    $23,804      $23,467
    Property and equipment, net                        99,357      103,956
    Other Assets                                        9,339        9,303
    Total Assets                                     $132,500     $136,726
                                                     ========     ========
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    Liabilities and Shareholders' Equity
    Current Liabilities                               $11,325      $14,057
    Non-Current Liabilities                             9,394       11,171
    Shareholders' Equity                              111,781      111,498
    Total Liabilities and Shareholders' Equity       $132,500     $136,726
                                                     ========     ========






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    CENTURY CASINOS, INC. AND SUBSIDIARIES
    SUPPLEMENTAL INFORMATION
    ------------------------
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    Century Casinos, Inc.
    Adjusted EBITDA Margins ** by Property (Unaudited)
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                                  For the Three          For the Nine
                                      Months                Months
                                 Ended September       Ended September
                                       30,                 30,
                               ----------------    ----------------
                                  2011      2010      2011      2010
                                  ----      ----      ----      ----
    Century Casino & Hotel,
     Edmonton                       33%       32%       33%       32%
    Century Casino, Calgary          4%       -5%        4%        1%
    Century Casino & Hotel,
     Central City                   21%       26%       21%       24%
    Century Casino & Hotel,
     Cripple Creek                  23%       21%       21%       17%
    Cruise Ships & Other            14%       13%       16%       18%
    Consolidated Adjusted
     EBITDA Margin                  17%       15%       16%       14%




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    Century Casinos, Inc.
    Reconciliation of Adjusted EBITDA * to Earnings
     (Loss) by Property (Unaudited)
    For the Three and Nine Months Ended September 30,
     2011 and 2010
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    Amounts In thousands
                                         Three Months Ended September 30, 2011
                                         -------------------------------------
                            Edmonton    Calgary  Central  Cripple  Cruise   
Corporate  Total
                            --------    -------    City    Creek   Ships &  
---------  -----
                                                            ----    Other
                                                                    -----
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     Earnings
     (loss)                     1,149        74      302      341      109    
(552) 1,423
     Interest
     income                        (6)        -        -        -        -    
-     (6)
     Interest
     expense                      185         -        -        -        -    
1    186
     Income
     taxes
     (benefit)                    234      (170)     173      208        2    
(529)   (82)
    Depreciation                  373       194      535      255      112    
57  1,526
     Non-
     cash
     stock
     based
     compensation                   -         -        -        -        -    
4      4
     Foreign
     currency
     losses
     (gains)                        1        (2)       -        -        -    
29     28
     Loss
     on
     disposition
     of
     fixed
     assets                         -         -        -        -        -    
2      2
     Adjusted
     EBITDA*                    1,936        96    1,010      804      223    
(988) 3,081
                                =====       ===    =====      ===      ===    
====  =====




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    CENTURY CASINOS, INC. AND SUBSIDIARIES
    --------------------------------------
    SUPPLEMENTAL INFORMATION
    ------------------------
    >>

    <<
    Century Casinos, Inc.
    Reconciliation of Adjusted EBITDA * to Earnings
     (Loss) by Property (Unaudited)
    For the Three and Nine Months Ended September 30,
     2011 and 2010
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                                                           Three Months Ended
September 30, 2010
                                                          
-------------------------------------
                                                Edmonton   Calgary  Central 
Cripple  Cruise     Corporate  Total
                                                --------   -------    City   
Creek    Ships &   ---------  -----
                                                                              
----    Other
                                                                              
-----
    >>

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    Earnings (loss)                                   769     (119)     377   
217        29        (952)   321
    Interest income                                    (4)       -        -   
-         -         (13)   (17)
    Interest expense                                  280        -        -   
-         -           -    280
    Income taxes (benefit)                            296      (45)     219   
134         1        (431)   174
    Depreciation                                      350       77      677   
288        83          54  1,529
    Non-cash stock based compensation                   -        -        -   
-         -          98     98
    Foreign currency (gains)                           (4)      (3)       -   
-         -         (15)   (22)
    Property write-down and other write offs            -        -       10   
-         -         (10)     -
    Loss on disposition of fixed assets                 6        -        -   
-         -          55     61
    Adjusted EBITDA*                                1,693      (90)   1,283   
639       113      (1,214) 2,424
                                                    =====      ===    =====   
===       ===      ======  =====
    >>

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                                                            Nine Months Ended
September 30, 2011
                                                           
------------------------------------
                                                Edmonton   Calgary  Central 
Cripple  Cruise     Corporate  Total
                                                --------   -------    City   
Creek    Ships &   ---------  -----
                                                                              
----    Other
                                                                              
-----
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    <<
    Earnings (loss)                                 3,242     (152)     673   
777       387      (2,496) 2,431
    Interest income                                   (13)       -        -   
-         -           -    (13)
    Interest expense                                  626        1        -   
-         -           1    628
    Income taxes (benefit)                            975     (144)     377   
476         7      (1,295)   396
    Depreciation                                    1,114      577    1,854   
771       331         185  4,832
    Non-cash stock based compensation                   -        -        -   
-         -         196    196
    Foreign currency (gains) losses                    (5)      36        -   
-         -        (192) (161)
    Loss (Gain) on disposition of fixed assets          -        -       15   
(5)       43           2     55
    Adjusted EBITDA*                                5,939      318    2,919   
2,019       768      (3,599) 8,364
                                                    =====      ===    =====   
=====       ===      ======  =====




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    CENTURY CASINOS, INC. AND SUBSIDIARIES
    SUPPLEMENTAL INFORMATION
    ------------------------
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    <<
    Century Casinos, Inc.
    Reconciliation of Adjusted EBITDA * to Earnings
     (Loss) by Property (Unaudited)
    For the Three and Nine Months Ended September 30,
     2011 and 2010
                                          Nine Months Ended September 30, 2010
                                          ------------------------------------
                            Edmonton    Calgary  Central  Cripple  Cruise   
Corporate  Total
                            --------    -------    City    Creek   Ships &  
---------  -----
                                                            ----    Other
                                                                    -----
    >>

    <<
     Earnings
     (loss)                     2,340       (87)     723      279       94    
(3,158)   191
     Interest
     income                       (20)       (1)       -        -        -    
(18)   (39)
     Interest
     expense                      857         -        -        -        -    
4    861
     Income
     taxes
     (benefit)                    856       (33)     405      171        3    
(956)   446
    Depreciation                1,047       185    2,023      871      253    
163  4,542
     Non-
     cash
     stock
     based
     compensation                   -         -        -        -        -    
386    386
     Foreign
     currency
     losses
     (gains)                       18        (2)       -        -        -    
57     73
     Loss
     on
     disposition
     of
     fixed
     assets                         9         -        1        1        -    
57     68
     Adjusted
     EBITDA*                    5,107        62    3,152    1,322      350    
(3,465) 6,528
                                =====       ===    =====    =====      ===    
======  =====



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* The Company defines Adjusted EBITDA as earnings (loss) before interest, income taxes, depreciation, amortization, pre-opening expenses, non-cash stock based compensation charges, asset impairment costs, gains (losses) on disposition of fixed assets, discontinued operations, realized foreign currency gains (losses) and certain other one-time items. Intercompany transactions consisting primarily of management and royalty fees and interest, along with their related tax effects, are excluded from the presentation of net earnings and Adjusted EBITDA reported for each property. Not all of the aforementioned items occur in each reporting period, but have been included in the definition based on historical activity. These adjustments have no effect on the consolidated results as reported under GAAP. 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 of its properties and the Company. 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 the Company's lending institution 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. Please see the reconciliation of Adjusted EBITDA to earnings (loss) above.

** 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 Century Casino & Hotels in Cripple Creek and Central City, Colorado, and in Edmonton, Alberta, Canada and the Century Casino in Calgary, Alberta, Canada. The Company also operates casinos aboard twelve luxury cruise vessels (Regatta, Insignia, Nautica, Marina, Mein Schiff 1, Mein Schiff 2, Wind Surf, Wind Star, Wind Spirit, Seven Seas Voyager, Seven Seas Mariner and Seven Seas Navigator) and signed a contract for an additional casino on board Oceania Cruises' Riviera that is expected to start operations in 2012. Through its Austrian subsidiary, Century Casinos Europe GmbH, the Company holds a 33.3% ownership interest in Casinos Poland Ltd., the owner and operator of seven casinos in Poland. The Company also manages the casino at the Radisson Aruba Resort, Casino & Spa in Aruba, Caribbean. Century Casinos, Inc. continues to pursue other international projects in various stages of development.

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

This release may contain "forward-looking statements" within the meaning of Section 27A of the Security Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and 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 future results of operations, operational efficiencies, synergies and operational performance, expected competition, the impact of new gaming laws and plans for our casinos. 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 section entitled "Risk Factors" under Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2010. 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.

    <<





    >>

SOURCE Century Casinos, Inc.

For further information: Peter Hoetzinger, Co CEO & President of Century Casinos, Inc., +1-719-689-5813, +43-664-355-3935, peter.hoetzinger@cnty.com Web Site: http://www.centurycasinos.com


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