07 October 2014 Negotiating a settlement regarding Casino Austria's Option Queenco Leisure International Ltd. (the "Company"), the emerging markets entertainment center and casino developer and operator, announces today, regarding the right of the Company and Club Hotel Investments (C.H.) Ltd. (the "Club Hotel"), through a chain of Israeli and foreign companies (the "Group's Corporations") held by them, to receive EUR 49.5 million (the "Original Consideration") as resulted from the exercise of a put option granted by Casinos Austria International Holdings GmbH (the "Casino Austria") to Vasanta Holdings Ltd. ("Vasanta"), one of the Group's Corporations, and which is under dispute between Casino Austria and Vasanta (the "Put Option"), that it has received information on advanced negotiations which are carried out between Vasanta and Casino Austria regarding the Put Option. The negotiations, on Vasanta's behalf, are led by Mr. Moshe Bublil according to the settlement agreement between the Company and Club Hotel (For further information please see the Company's report dated 1 July 2014) (the "Settlement Agreement"). According to information received by the Company, PowerBrook Spain S.L (the " PBS") will be entitled to a substantial consideration which has not been agreed upon yet and will be lower than the Original Consideration. Furthermore, according to the current layout of the transaction, Casinos Austria will assign to a related party of Agastia Holdings Ltd. the rights in PBS to be granted to Casinos Austria under the Put Option agreement. QLI, in accordance with its holdings (via related and daughter companies), is entitled to approximately 46% of the free cash flow to be received in PBS for this transaction, all in accordance with the distribution mechanisms set in the Settlement Agreement. The Company wishes to clarify that the negotiations are in a non-binding draft exchange stage, and that there is no certainty that the negotiations will result in a binding transaction, within the aforementioned structure or any other, nor it is possible to evaluate the chances of such negotiations. Queenco Leisure International Ltd. For further information about the Company please visit www.queenco.comor 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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