October 13, 2009 09:05 ET

Beneficial Holdings Inc. Narrows Search to Two Online Casino Developer-Processors

MANAGUA, NICARAGUA--(Marketwire - October 13, 2009) - Beneficial Holdings, Inc. (PINKSHEETS: BFHJ), a casino investment and management holding company, today announced that it has narrowed the search for an online casino developer-processor to two highly qualified candidates.

In the Company's press release of July 22, 2009, Beneficial Holdings announced that it planned on developing or acquiring a presence in the highly lucrative online casino sector. The Company's initial plans were to handle all customer service matters in house via a central location in Costa Rica.

However, during the past several months, Costa Rica's executive department has issued various decrees that make it more difficult for gaming establishments to operate and, as to online casinos, they have issued various costly new taxation schemes.

Upon extensive review of all the Company's options, Beneficial Holdings determined that the proper course of action would be to form a joint venture with an established casino operation that already maintains the proper licensing for online digital casinos. After viewing various proposals entertained by the Company, and after extensive due diligence and research, Beneficial narrowed its search down to two vendors.

Each vendor would provide all programming and maintenance of the online casino, process all transactions, and provide various technical support. The casino would be built to Beneficial's standards and brand, while continuously providing complete access to all transaction data. In exchange, the casino developer-processor would receive a commission ranging between 20 and 30%. Beneficial is in the final stage of negotiations and expects to announce its final decision within the next three weeks. At that time, the Company will execute all the required contracts and proceed forward. It will take approximately sixty (60) days to complete the online casino.

In the interim, the Company will continue its affiliate relationship with Virgin Games.

This press 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 the date hereof, and the company undertakes no obligation to update any statement to reflect occurrences after the date of this release.

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