Gateway Casinos Income Fund

Gateway Casinos Income Fund

May 17, 2006 19:01 ET

Gateway Casinos Income Fund Announces April Distribution; Shareholders Approve Acquisition of Cascades

BURNABY, BRITISH COLUMBIA--(CCNMatthews - May 17, 2006) - Gateway Casinos Income Fund (the "Fund") (TSX:GCI.UN) is pleased to announce a cash distribution of $0.115 per unit for the month of April 2006. The distribution will be paid to unitholders of record at the close of business on May 26, 2006 and will be payable on May 31, 2006.

The Fund is also pleased to announce that, at its Annual and Special Meeting of Unitholders held today, the acquisition of the Cascades Langley Casino and Hotel, originally announced on April 3, 2006, was approved by a majority of the non-interested Unitholders of the Fund. The acquisition is anticipated to close on May 19, 2006.

"We are very excited about the acquisition of Cascades and are pleased with the show of unitholder support for our corporate strategy," said Dave Gadhia, CEO of Gateway Casinos G.P. Inc. "As stated in an earlier press release, the acquisition is expected to be immediately accretive to Unitholders of the Fund and the Trustees have agreed to raise monthly distributions to $0.1195 in the month immediately following the close of the acquisition."

About the Fund

The Fund is an unincorporated open-ended limited purpose trust established under the laws of British Columbia, which operates the Burnaby Casino in Greater Vancouver, B.C., the Palace Casino in Edmonton, Alberta and the Lake City Casinos in Kamloops, Kelowna, Penticton and Vernon, B.C. Headquartered in Burnaby, B.C., the Fund is one of the largest casino operators in Western Canada.

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