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To: Daniel Miller who wrote (6368)	3/31/1999 10:04:00 AM
From: Steven G. Trapp & Company	Respond to of 9115

Casino Journal Announces Fiscal 1998 Results PR Newswire - March 31, 1999 09:05 LAS VEGAS, March 31 /PRNewswire/ -- Casino Journal Publishing Group, Inc. (OTC Bulletin Board: CJPG) today announced audited financial results for the year ended December 31, 1998. 1998 was a year of tremendous growth for the Company as revenues rose 26% to a record $9,123,326 as compared with $7,265,011 in fiscal 1997. Higher advertising and subscription revenue, along with the launch of 2 new magazines and 2 new trade shows offset the negative effects of the Company's highest grossing trade show, the American Gaming, Lodging and Leisure Summit, not being included in fiscal 1998 results as the show took place in January of 1999. The last AGLLS took place in December of 1997. Advertising revenue rose 28% to a record $5,393,314 as compared with $4,237,232 in fiscal 1997. Advertising growth was attributed to higher circulation of the Company's flagship Casino Player magazine as well as a more aggressive sales approach by the Company's sales executives. Subscription revenues rose 62% to a record $2,308,098 as compared with $1,629,207 in fiscal 1997. During 1998, the Company embarked on various, aggressive subscription generating marketing campaigns to increase circulation of Casino Player magazine and prepare for the launch of the Company's newest consumer magazine, Strictly Slots. Trade show revenue decreased 10% to $819,607 from $914,078 in fiscal 1997 primarily due to the absence of the American Gaming, Lodging and Leisure Summit in fiscal 1998. This show took place in January of 1999 and if included in 1998 results, trade show revenue would have risen 55% to approximately $1,419,000. Net loss for fiscal 1998 was $247,889 or $0.06 per share as compared with pro-forma net income of $232,413 or $0.08 per share in fiscal 1997. The net loss for fiscal 1998 was primarily caused by higher deprecation mid amortization of $161,212 due to the amortization of goodwill from the merger with Gaming Venture Corp., U.S.A., approximately $330,000 in costs from the launch of Strictly Slots magazine and a 180% rise in promotional expenses for subscription generating direct mail marketing campaigns. Not including the costs associated with the launch of Strictly Slots, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) would have been $235,262 or $0.05 per share. Commenting on the extreme growth in fiscal 1998, Casino Journal Publishing Group, Inc. Chairman and CEO Glenn Fine said, "We are very proud of what we accomplished in fiscal 1998. The Company beat every internal projection we had for the year. Every trade publication for the magazine industry says that you cannot successfully launch a consumer magazine for less than $1 million. We were able to successfully launch Strictly Slots in November of 1998 with less than half of what experts have said you need to launch this type of magazine. As of this date, we have generated approximately 66% of our subscription goal for all of 1999 for Strictly Slots. At the same time, we continue to grow Casino Player both in subscriptions and advertising revenue. In 1998, we launched 2 new magazines: Casino Ops and Strictly Slots, as well as 2 new trade shows: The Greater Atlantic City Chamber of Commerce Business Expo and the UNLV Casino Ops shows. Despite these launches and the absence of our largest trade show, the AGLLS, our net loss for the year was approximately 50% of what we expected. Revenues were 12% higher than we anticipated. Our first quarter of fiscal 1999 has been well above our expectations with a large jump in revenues for the AGLLS, high advertising revenue for Casino Player and a company record for subscriptions generated on a cash basis for any 3 month period. We will continue to aggressively grow this company in fiscal 1999 and beyond." In the 4th quarter of fiscal 1998, the Company's Strictly Slots magazine was named as one of the top 30 Most Notable Magazine Launches of 1998 by Samir Husni, Hederman Lecturer and Professor for the Department of Journalism. The Company also signed an agreement with Greyhound Lines, Inc. (Amex: BUS) whereby Greyhound will distribute monthly issues of Casino Player and Strictly Slots magazines to passengers traveling from California and Arizona to gaining areas in Nevada such as Las Vegas, Lake Tahoe, Reno and Laughlin. It is contemplated that a total of 23,000 magazines a month will be distributed to passengers of Greyhound going to these gaming destinations. Casino Journal Publishing Group, Inc. publishes Casino Player, the leading consumer magazine for the gaming industry with total circulation of over 400,000 a month; Strictly Slots, the newest consumer magazine for slot players and the gaming industry; Casino Journal, the leading trade magazine for the gaming industry; Casino Ops, a trade magazine for the middle level gaming executive; Nevada Hospitality, the official magazine of the Nevada Hotel/Motel & Restaurant Association; The National Gaming Summary, The Gaming Industry Weekly Report, The Gaming Industry Daily Report, The Daily Lodging Report and The Atlantic City Insider newsletters. The Company also produces the American Gaming, Lodging and Leisure Summit in conjunction with Bear Stearns & Co. and the law firm of Lionel Sawyer and Collins; The Southern Gaming Summit with the Mississippi Casino Operators Association; The Atlantic City Chamber of Commerce Business Expo and UNLV's Casino Ops trade shows. Financial Statements in this press release other than historical facts are "forward-looking" statements within the meaning of section 27A of the Securities Act of 1933, section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such statements about file Company's future expectations, including future revenues and earnings, and all other forward-looking statements be subject to the safe harbors created thereby. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results could differ materially from expected results. Investors are urged to consult the Company's filings with the Securities and Exchange Commission for other risks and uncertainties. CASINO JOURNAL PUBLISHING GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS YEARS ENDED DECEMBER 31, 1998 AND 1997 1998 1997 Revenues Advertising $5,393,314 $4,237,232 Subscriptions 2,308,098 1,629,207 Trade shows 819,607 914,078 Consulting 387,328 -- Other 214,979 484,494 9,123,326 7,265,011 Direct costs Printing 1,953,947 1,514,989 Production 697,197 838,425 Postage 487,373 438,238 Distribution 349,033 281,210 Commissions 814,774 638,342 Other 289,330 185,536 4,591,654 3,896,740 Gross profit 4,531,672 3,368,271 Operating expenses Promotion 558,488 197,453 General and administrative 4,067,922 2,686,139 Depreciation and amortization 161,212 59,864 Interest expense 29,287 25,504 4,816,909 2,968,960 Operating income (loss) (285,237) 399,311 Other income 40,348 33,972 income (loss) before income taxes and minority interest (244,889) 433,283 Income taxes 3,000 2,124 Income (loss) before minority interest (247,889) 431,159 Minority interest in earnings of American Gaming Summit, LLC -- 60,870 Net income (loss) $(247,889) $370,289 Pro forma income data (unaudited) - 1997 income before income taxes and minority interest, as reported $433,283 Minority interest in earnings of American Gaming Summit, LLC. as reported 60,870 Income before taxes, as adjusted 372,413 Pro forma income taxes 140,000 Pro forma net income 232,413 Basic and diluted income (loss) per share $(.06) $.08 Shares used in the calculation of income (loss) per share 4,366,067 3,000,000 SOURCE Casino Journal Publishing Group, Inc. /CONTACT: Alan R. Woinski, President & CFO of Casino Journal Publishing Group, Inc., 201-947-4642/ /Web site: casinocenter.com (CJPG)

To: Daniel Miller who wrote (6368)	3/31/1999 11:18:00 AM
From: Shark King	Read Replies (1) \| Respond to of 9115

Hope you got a chance to pick up some LOCH... It's going to profit those who get in now! '98 Financials will be out as early as today. ChemTech expecting NEWS of MAJOR DEAL with ___ ___.(You know who) * ChemTech will be spinning OFF as new stock. (shareholders delight) Happy Trading, Shark

To: Daniel Miller who wrote (6368)	3/31/1999 12:17:00 PM
From: CIMA	Read Replies (2) \| Respond to of 9115

Why Internet shares will fall From The Economist 30 Jan 99 INDEX TERMS Internet\|overvalued shares, inevitability of fall; Shares\|Internet, overvaluation, inevitability of fall; Stockmarkets\|Internet shares' overvaluation, inevitability of fall; DATE 30-Jan-99 WORDS 1014 Why Internet shares will fall "THE electric light is very probably a great invention, and . . . let us take it for granted that its future development will be vast. But this, unhappily, cannot be urged as a reason why the pioneer companies should be prosperous." Time and technology have moved on since 1882, when these words appeared in The Economist (as recently spotted by the Wall Street Journal, assiduously reading our back copies). But the same sentiments apply to today's great invention, the Internet. Because it is a potent and entirely new medium, the net will change the way the world works and plays. Even so, today's pioneering Internet companies are unlikely ever to earn the vast profits needed to justify their current share prices. Indeed, future historians may well add Internet shares to a long list of industrial assets-including biotechnology firms in the 1990s, radio companies in the 1920s, electric-light companies and railways in the 19th century-that have come spectacularly crashing to earth. This newspaper has long argued that shares in general are overvalued, especially in America. And, because American consumers have used their new-found paper wealth to justify spending more and saving less, the economy looks vulnerable to a collapse in share prices. But the inflation of Internet shares is, in many respects, quite different. Whereas investors on Wall Street are merely exuberant, the casino capitalists who spend seven or eight hours a day at their PC s trading Internet shares appear to be stark, staring mad. Most of those who have watched enviously from the sidelines sense that gravity will assert itself sooner or later. Many of the online gamblers who have earned a fortune in paper profits betting their savings on shares in Yahoo!, Amazon and the rest will never get their money out. For the very features that have led to a near-vertical climb of Internet share prices also favour its precipitous collapse. Most Internet companies go public by selling only a handful of shares: only 34% of Amazon's equity is publicly traded, and a mere 9% of that of eBay, an online auctioneer. The few available shares are greedily snapped up by a cyber-army of online "day traders" via electronic brokerages, such as E*Trade. Amazon's entire float changes hands twice a week. Hedge funds that sold what they thought were already overvalued shares they did not actually own have scrambled to buy back as prices rose. Just as tulips only became truly manic when ordinary people started trading bulbs in Dutch taverns, so the trebling of Internet values since September has been accompanied by a surge of trading among people unskilled in the art of valuation and unburnt by past losses. All this is likely to reverse with brutal rapidity. A thin market exaggerates falls as well as rises. The new online brokerages may not be able to handle large volumes. Suddenly, hedge funds will start selling. As losses mount, and buyers disappear, inexperienced investors could well panic. Nobody can predict the extent of the fall. Even the experts do not know how to value Internet shares. Bill Sharpe, for example, who won the Nobel prize in economics for work on pricing financial assets, is enough of an Internet believer to have founded an online financial-advice company. Even he admits that "we are all pretty much flying blind." The problem is not merely that few Internet companies actually make a profit (though this makes traditional measures of value somewhat redundant). Although few now doubt that electronic commerce has a thrilling future, reasonable people differ over what, and how profitable, that future will be. Some venture capitalists and executives reckon that the biggest profits will be earned by companies that establish a strong brand by virtue of being first in a market. They believe the coming collapse will affect only second-and third-tier firms. Even this may be optimistic. In the end, valuation comes down to one simple fact. To justify today's share prices, Internet companies will have to enjoy unprecedented growth in sales and margins. It would take average annual profits of over $1 billion to make sense of Amazon's current $20 billion-odd market value. Yet Amazon's total sales in 1998 were only $600m. The sales of many of today's Internet stars will never soar that high. If anything, the Internet will give consumers more power and make it hard even for firms with a large market share to raise their margins for long (see<DEST="SF1217.ETG" ref = article ) . And after the fall Much will depend on whether the bigger stockmarket bubble bursts too. If it does, concerns about Internet shares will be lost amid worries about the world economy as a whole. If Internet share-values topple in isolation, however, the effects might actually be salutary. Venture capitalists in Silicon Valley have more money than they know what to do with. Even after an Internet crash, there would be enough wealth to back good ideas. Because current valuations have inflated what Internet entrepreneurs think they and their ideas are worth, it would become cheaper for venture capitalists to invest in them. The temptation today is to sell up and move on without having taken the trouble to build a real business. Lower share prices would force entrepreneurs to lower their expectations and restore sanity to the net's job market, in which people spend much of their day looking for employers offering juicier share options. Investment in Internet businesses would suffer only if venture capitalists lost faith in electronic commerce itself-as opposed to particular firms or the judgment of online traders. The prospect of an Internet share-bust holds a warning for other investors. Today's appetite for equities rests on an erroneous belief that they are a one-way bet: that, in the long run, they always pay higher returns than other assets. Disappointing profits are dismissed with a wave of the hand and the promise of a better tomorrow. When Wall Street crashes it is unlikely to fall so far or so spectacularly as will Internet shares. All the same, when Internet shares plunge, the screams should strike fear into investors everywhere.