Thunderbird Resorts Inc.

Thunderbird Resorts Inc.

May 20, 2005 13:35 ET

International Thunderbird Gaming Corporation: Message to our Shareholders on 2005 First Quarter Results and Update on Finance Advisor to Raise Capital

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 20, 2005) - International Thunderbird Gaming Corporation ("Thunderbird") (CNQ:ITGC.U)(FWB:OSJ) announces the Company's financial results for the first quarter ended March 30, 2005. All figures are in US dollars.

Revenues from continuing operations for the first quarter of 2005 were $8.6 million, an increase of 53% over 2004 revenues from continuing operations of $5.6 million for the same period. Net income for the period was $146 thousand compared to $353 thousand in 2004 for the same period. The income for the current period stems from ongoing continuing operations and was impacted by project development costs of $426 thousand for the quarter compared to just $75 thousand for the same period in 2004. The earnings per share were essentially $nil in Q1 2005 compared to $0.01 per share for the same period in 2004. There were no extraordinary items recorded in the first quarter of 2005 or 2004. Excluding the impact of development costs, the Company would have had period earnings of $0.02 and $0.01 for 2005 and 2004, respectively. The Company achieved EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) of $1.3 million compared to $1.3 million for the same period in 2004. The Company's working capital was $189 thousand at March 31, 2005, a significant decrease from $1.4 million at December 31, 2004, reflecting the use of cash on hand for capital expenditures.

For a more detailed analysis of the results for the period, please review the MD&A at the Company's website or the CNQ website.

In Panama, 2005 revenues grew approximately 4% over its 2004 performance during the first three months, in spite of increased competition. However, there was a modest decrease in earnings related to the promotional efforts used to protect the revenues in the highly competitive market. The operation still maintains market share and continues to grow outside of the now highly concentrated central Panama City region.

In Costa Rica, the operation posted revenues of approximately $1.6 million with only 45 days of performance from the new casino in San Jose, which opened in February 2005. Initial and extraordinary pre-opening and promotional costs impacted profit performance, which amounted to approximately $42 thousand for the quarter.

In Nicaragua, the operation generated revenues of approximately $2.2 million for the first three months of 2005 compared to $2.3 million for the same period in 2004. Included in the Company's 2005 first quarter earnings is its 52.6% share of profits from Nicaragua. The Company recorded its interest at $243 thousand as compared to $113 thousand in 2004, when the Company's equity interest was approximately 21%. We are pleased to report that our third casino operation in Managua opened on May 12, 2005. The initial results for the Pharaoh's Casino at the Camino Real Hotel are encouraging.

In Venezuela, the operation is enjoying a very healthy revenue performance, generating the equivalent of approximately $2 million for the quarter. The casino showed operating profit of approximately $661 thousand before the impact of foreign exchange reduced net profit to just $137 thousand. The Company included its 29% interest in its 2005 first quarter results compared to nil in the same period in 2004. The cost of securing US dollars to meet certain obligations is still prohibitive in the country. Revenues, in the local currency, for the quarter grew approximately 50% over the comparable period in 2004.

In Guatemala, 2005 revenues were impacted by certain local competitive factors, which the Company believes is a short term condition given the nature of the issue. However, earnings suffered $120 thousand compared to the 2004 first quarter and was related primarily to this impact.

The Fiesta Casino and Resort outside Manila has now been opened for 35 days. The revenue generated during this period is materially lower than management's projections and expectations. Management remains confident that marketing efforts will result in a solid market base in Manila. We continue to believe in the potential of the operation in this very important market. Management is confident that stronger marketing efforts that focus on a superior one stop destination resort for the local Filipino patron and to the international customer will be met with increased revenues. However, management believes that even with such marketing efforts it will take an extended period of time to produce the kind of results that the Company had initially expected.

The Company is now poised to submit bids in Chile to secure new casino licenses. Under the new Chilean casino law, up to 17 new licenses will be bid upon between July and August of 2005. Thunderbird's financing for these bids is well advanced as are our market studies, related agreements and architectural renderings. The Company's final bid proposals are designed to maximize the likelihood of winning the bid(s) based upon an objective "score" under the point system defined in the law. The Company continues to work diligently in meeting our objectives.

The Company continues to await a ruling on the NAFTA case concerning the Mexico Skill Game Operation.

The Company has engaged Southwest Securities Inc. ("SWS") as exclusive financial advisor and placement agent in connection with raising capital. As part of the compensation for SWS services, the Company has committed to issue Stock Purchase Warrants ("Warrants") covering 350,000 shares of Common Stock of the Company. Exercise of the Warrants is subject to completion of certain services by SWS. The exercise price of the Warrants covering 100,000 common shares is equal to $1.50 per share and the exercise price of the Warrants covering 250,000 common shares is $2.50 per share.

International Thunderbird Gaming Corporation is an owner and manager of international gaming facilities. Additional information about the Company is available on its World Wide Web site at

On behalf of the Board of Directors,

Jack R. Mitchell, President and CEO

Cautionary Notice: This release contains certain forward-looking statements within the meaning of the securities laws and regulations of various international, federal, and state jurisdictions. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential revenue and future plans and objectives of the Company are forward-looking statements that involve risk and uncertainties. There can be no assurances that such statements will prove to be accurate and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's forward-looking statements include competitive pressures, unfavorable changes in regulatory structures, and general risks associated with business, all of which are disclosed under the heading "Risk Factors" and elsewhere in the Company's documents filed from time-to-time with the CNQ and other regulatory authorities.

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