Gateway Casinos Income Fund

Gateway Casinos Income Fund

October 17, 2005 15:34 ET

Gateway Casinos Income Fund Announces Increase in Monthly Distribution to $0.115 per Unit

BURNABY, BRITISH COLUMBIA--(CCNMatthews - Oct. 17, 2005) - Gateway Casinos Income Fund (the "Fund") (TSX:GCI.UN) is pleased to announce that the Board of Trustees has approved an increase in the Fund's distribution of $0.005 per unit per month, bringing the monthly distribution to $0.115 per unit. This increase is effective for the distribution for the month of September, which will be paid to unitholders of record at the close of business on October 26, 2005 and will be payable on October 31, 2005.

"This marks the third increase in our monthly distribution since our IPO in November 2002," said Dave Gadhia, President of Gateway Casinos G.P. Inc. "All of our casinos have continued to perform well in 2005 and we are pleased to be able to pass on further earnings to our unitholders."

"As we have said in the past, the Fund takes a conservative approach to distributions and management only recommends an increase when we are confident that it is sustainable in the future. As we have discussed throughout the year, we have seen a number of changes in the BC market, particularly in the Greater Vancouver region, and there are more to come with the opening of the expanded Coquitlam Casino later this year and the installation of slot machines at Hasting Racecourse in Vancouver sometime in 2006. The Fund has weathered these changes well to date. There has been no impact from the changes that we have seen so far in 2005, and we are well positioned to meet the challenges to come. While all six of our casinos have shown strong growth over last year, it is the Burnaby Casino that is facing the most challenges in this changing market. We are very pleased with how the facility has operated since the expansion on December 16, 2004. Full details of our recent operations will be discussed when we release our third quarter earnings on November 8, 2005."

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.

In conjunction with the release of its third quarter 2005 financial results, Gateway Casinos Income Fund (the "Fund") (TSX:GCI.UN) will host a conference call at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time) on Wednesday, November 9, 2005.

Dave Gadhia, President, and Bradley Bardua, CFO, of Gateway Casinos G.P. Inc., will review the third quarter results and corporate developments. The financial results will be released after the close of the Toronto Stock Exchange on Tuesday, November 8, 2005.

To participate in this conference call, please dial one of the following numbers approximately 10 minutes prior to the commencement of the call:

Toll-free: 1.877.667.7774
GTA local and international: 416.695.5259

A playback recording of the call will be available until
November 23, 2005 by dialing:

Toll-free: 1.888.509.0082
GTA local and international: 416.695.5275

We look forward to having you participate in our call.

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