Great Canadian Gaming Corporation
TSX : GCD

Great Canadian Gaming Corporation

January 18, 2007 20:37 ET

Great Canadian Gaming Corporation: Hastings Goodwill Write Down

RICHMOND, BRITISH COLUMBIA--(CCNMatthews - Jan. 18, 2007) - Great Canadian Gaming Corporation (the "Company") (TSX:GCD) announced today that in the quarter ended December 31, 2006 it recorded a non-cash write down of approximately $9.9 million representing all of the goodwill associated with its investment in Hastings Entertainment Inc. The write down resulted from a review of the Company's operations and normal course impairment tests associated therewith.

"Great Canadian remains excited about, and committed to, the next stage in Hastings' development," stated Milton Woensdregt, Great Canadian's Chief Financial Officer.

About Great Canadian Gaming Corporation

Great Canadian, home to approximately 5,200 employees, is a multi-jurisdictional gaming and entertainment operator with facilities in British Columbia, Ontario, Nova Scotia, and Washington State. Great Canadian operates casinos, thoroughbred and standardbred racecourses, a community gaming centre, a hotel, two show theatres, and various food and beverage facilities.

ON BEHALF OF GREAT CANADIAN GAMING CORPORATION

Milton Woensdregt, CA, Chief Financial Officer

DISCLAIMER

This news release may contain forward-looking statements which reflect management's current expectations regarding the Company's objectives, plans, goals, strategies, future growth, results of operations, performance and business prospects and opportunities. These forward-looking statements are not guarantees, but only predictions. Although the Company believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a number of factors that could cause actual results to vary significantly from current expectations. Such differences may be caused by factors which include, but are not limited to, requirements to comply with financial covenants associated with credit facilities, limited terms of operational service agreements with gaming regulators, pending and proposed legislative or regulatory developments, competition from established competitors and new entrants in the gaming business, dependence on key personnel, no assurance that systems, procedures and controls will be adequate to support expanding operations, potential undisclosed liabilities and capital expenditures associated with acquisitions, negative connotations linked to the gaming industry, First Nations claims with respect to public lands on which we conduct our operations, impact of legal proceedings, impact of smoking bans, interest and exchange rate fluctuations, nonrealization of cost reductions and synergies, acceptance and demand for new products and services, fluctuations in operating results and general economic conditions. The Company cautions that this list of factors is not exhaustive. These factors and other risks and uncertainties are discussed in the Company's materials filed with the Canadian securities regulatory authorities from time to time, including in the "Risks Factors" section of the Company's Annual Information Form for fiscal 2005, or as identified in the Company's disclosure record on www.sedar.com. The forward-looking statements included in this news release are made only as of the date of this news release and the Company does not undertake to publicly update these forward-looking statements to reflect new information, future events or otherwise.

Contact Information

  • Great Canadian Gaming Corporation - Investor Inquiries
    Thomas Bell
    Vice-President, Corporate Development & Investor Relations
    (604) 303-1000
    (604) 279-8605 (FAX)
    or
    Great Canadian Gaming Corporation - Media Inquiries
    Howard Blank
    Vice-President, Media & Entertainment
    (604) 512-6066
    (604) 279-8605 (FAX)
    Website: www.gcgaming.com