Beneficial Holdings Inc.  (Pink Sheets:  BFHJ)

April 23, 2010 06:00 ET

Beneficial Holdings Inc. Comments on Political Situation in Nicaragua

MANAGUA, NICARAGUA--(Marketwire - April 23, 2010) -  Beneficial Holdings, Inc. (PINKSHEETS: BFHJ), a casino and hospitality investment and management holding company, today commented on the political situation in Nicaragua.

Several shareholders have requested to know the status of Beneficial's properties and investments in Nicaragua because of news stories about political protests. 

The Company operates a hotel and two gaming properties in Nicaragua. In addition, the Company is in the process of taking possession of another gaming property and is negotiating for an additional 39 slot and gaming parlors.

Nicaragua is a pro-business democracy. The current administration has done nothing to impede enterprise or investments. As a democracy, protests are allowed without unnecessary interruption by police. Of course, law enforcement is usually present to keep the peace.

Recently, opposing political parties appeared at a hotel where the opposition held rallies. As usual in Nicaragua, the protests were peaceful. However, like anywhere else, there are always a few radical or unruly persons. Some political demonstrators threw some stones and firecrackers at a hotel where a political speech was taking place. Police in the area acted appropriately and swiftly. Certain sensationalist members of the press greatly exaggerated the situation. 

"I am here in Nicaragua and the City is operating normally without any impact on our operations. There's no turmoil (as reported in the press) or threat to BFHJ's businesses or investments. As Managua is growing and developing into a major tourist and business center, Beneficial Holdings plans on expanding rapidly and increasing its investment significantly in Nicaragua this year," said Carolina Navarro, President of Beneficial Holdings.

Carolina Navarro further stated, "In no way is Nicaragua under a state of emergency or being subjected to any out of the ordinary demonstrations. Rather, the country remains the safest destination in Central America. Tourists are treated respectfully by residents, law enforcement, and political groups. Crime remains low and, for the most part, non-violent."

None of the enterprises operated by Beneficial Holdings needed to institute additional security. The hotel and gaming facilities remained open for business. 

The Nicaraguan government did add additional police, but no unusual events or mass demonstrations occurred.

Beneficial Holdings has conducted studies of the political situation in Nicaragua well in advance before investing there. In fact, Nicaragua's business community is growing and agents of the Government are quite helpful in providing assistance to foreign enterprises that create jobs and opportunities in the area. The Company's experience is that the Nicaraguan National Police provide adequate security to the public and tourists regardless of their viewpoints.

About Beneficial Holdings:

Beneficial Holdings maintains two subsidiaries in Nicaragua: Grupo Beneficial, S.A., and Recreaciones Beneficial, S.A. BFHJ has 903,000,000 shares authorized and no plans to increase its authorized shares. The majority of the shares are restricted, such as the control block, and these shares cannot be traded. Less than 275,884,651 free trading shares exist. There are 627,115,349 long term restricted shares. The Company previously issued a 6 for 1 share dividend to create liquidity. While the stock is more liquid, the price has actually fallen and the stock continues to suffer from what appears to be day trading and short trading. According to daily reports released by FINRA, on some days, between 60 and 90 percent of the Company's share trading volume is a result of short selling. The Company is looking into methods to curtail this manipulation and to bring more transparency and value to the shareholders.

This release does not constitute an offer of securities for sale. It contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve risks and uncertainties that could cause results to differ. Statements are based on information available as of today and the company undertakes no obligation to update any statement to reflect future occurrences.

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