SOURCE: Kenilworth Systems Corporation

October 18, 2010 08:00 ET

Kenilworth Systems Corporation Reorganizes

MINEOLA, NY--(Marketwire - October 18, 2010) -  Kenilworth Systems Corp (PINKSHEETS: KENS) ("Kenilworth") today announced a major corporate restructuring designed to focus the Company's efforts on its core business and maximize shareholder value. 

Dan W. Snyder III, President and CEO, said that "The Directors have approved a plan that will break Kenilworth into three companies, each with a well defined area of business. To advance this plan Kenilworth has formed two new subsidiaries."

A new wholly owned subsidiary, KenSysCo Corp, holds and operates Kenilworth's intellectual property assets such as the Company's live-gaming patents and other patents pending. KenSysCo will conduct all operations related to use of the patents in licensed casinos outside of the USA. It is the intention to rapidly develop this subsidiary; then spin it out to existing Kenilworth shareholders in early 2011 as a publicly traded company.

A second wholly owned subsidiary, Convergent Networks, Inc. was formed to continue and greatly expand Kenilworth's application of broadband technology in the gaming sector, as well as the broadcast media to support these operations. This subsidiary also intends to acquire companies in the rapidly expanding digital convergence and social networking segments. Mr. Snyder indicated that Kenilworth will likely also spin out this new subsidiary to existing shareholders of Kenilworth in early 2011.

Kenilworth Systems Corporation is an integrated technology corporation with intellectual property assets and technical capabilities in the live online gaming sector. The Company is based in Mineola, New York.

FORWARD-LOOKING STATEMENTS

The information contained in this Press Announcement includes "forward-looking" statements within the meaning of section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the safe harbors created thereby. Such information involves important risks and uncertainties that could significantly affect results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements herein. Future operating results may be adversely affected as a result of a number of factors.

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