Gateway Casinos Income Fund
TSX : GCI.UN

Gateway Casinos Income Fund

July 11, 2007 11:57 ET

Gateway Casinos and UFCW Reach Agreement at the Palace Casino in Edmonton, Alberta

BURNABY, BRITISH COLUMBIA--(Marketwire - July 11, 2007) - Gateway Casinos Income Fund (the "Fund" or "Gateway") (TSX:GCI.UN) today announced that it has reached an agreement with the United Food and Commercial Workers ("UFCW") Union over the strike at the Palace Casino in Edmonton, Alberta. A tentative settlement announced on July 9, 2007 was ratified by UFCW members with an 86% vote in favour of the offer. The contract will be effective from November 1, 2005 for a four-year term.

"We are pleased to have a resolution in place and a foundation for a solid working relationship going forward," said Dave Gadhia, CEO of Gateway. "We will begin to bring staff back to work immediately, with the objective of restoring the casino to full operation as quickly as possible. Management and the union will work together closely to implement a plan to re-establish our position in the marketplace and we are very confident this can be achieved."

Highlights of the agreement include:

- Four-year contract effective November 1, 2005;

- Annual wages increases of 3% in the first year of the contract and 4% for each of the remaining three years;

- Signing bonuses of $1,200 per part-time employee and $3,000 per full-time employee

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 and Cascades Langley Casino and Hotel in Greater Vancouver, BC, the Palace Casino in Edmonton, Alberta and the Lake City Casinos in Kamloops, Kelowna, Penticton and Vernon, BC. Headquartered in Burnaby, BC, the Fund is one of the largest casino operators in Western Canada.

Forward-Looking Statements

This news release contains forward-looking statements that reflect the expectations of management and the Board of Trustees regarding the future activities of the Fund and its subsidiaries. Forward-looking statements typically contain words such as "believes", "anticipates", "continue", "could", "expects", "indicates", "plans", "will", "may", "projects", "would" or similar expressions suggesting future outcomes or events, although not all forward-looking statements contain these identifying words. Such forward-looking statements reflect the current beliefs of management and the Board of Trustees based on information currently available to them. Forward-looking statements involve significant risks and uncertainties, and the Fund cautions readers not to place undue reliance on these statements as a number of important factors could cause the Fund's actual results to differ materially from the beliefs and expectations expressed in such forward-looking statements. For a discussion of the risks faced by the Fund which may cause actual results to vary refer to the Annual Information Form of the Fund dated April 2, 2007. The forward-looking statements contained herein are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. The Fund undertakes no obligation to revise these forward-looking statements to reflect subsequent events or circumstances.

To find out more about Gateway Casinos Income Fund (TSX: GCI.UN), visit our website at http://www.gatewaycasinosincomefund.com.

Contact Information

  • Investor relations contact:
    Gateway Casinos G.P. Inc.
    Bradley D. Bardua, CA, Chief Financial Officer
    (604) 412-0166
    (604) 412-0169 (FAX)
    Email: investorrelations@gatewaycasinos.com
    or
    Newsroom contact:
    Gateway Casinos G.P. Inc.
    Monique Wilberg, Chief Operating Officer
    (604) 412-0166
    (604) 412-0169 (FAX)
    Email: mwilberg@gatewaycasinos.com