Equus Gaming Co.: Earnings News Release EQUUS GAMING COMPANY L.P. EXECUTIVE OFFICES 222 Smallwood Village Center, St. Charles, Maryland 20602 (301) 843-8600 FAX (301) 870-5487 News Release FOR IMMEDIATE RELEASE CONTACT June 12, 1998 J. Manuel Rivera (787) 753-0676 EQUUS REPORTS RESULTS FOR 1998 FIRST QUARTER SAN JUAN, PUERTO RICO -- Equus Gaming Company L.P. (Nasdaq: EQUUS), a publicly traded partnership with horse racing and gaming interest in the Caribbean reports its operating results for the quarter ended March 31, 1998. Through its ownership of a 99 percent interest in Housing Development Associates S.E. (HDA), Equus' operating results are primarily attributed to El Comandante race track in Puerto Rico, V Centenario race track in the Dominican Republic, and effective January 1, 1998, Presidente Remon race track in Panama. For the three months ended March 31, 1998, Equus reported a net loss of $250,000 or $.04 per Unit on revenues of $17,437,000 compared to a net income of $3,556,000 or $.56 per Unit on revenues of $9,756,000 for the same period in 1997. Effective January 1, 1998, El Comandante is under operation by a wholly-owned subsidiary of HDA, following cancellation of the lease with the prior operator. Therefore, the 1997 proforma results, net income of $3,385,000 on revenues of $20,897,000, were presented as if the cancellation of the lease had occurred effective January 1, 1997. The racing commission in Puerto Rico approved the termination of the lease of El Comandante on May 5, 1998. The 1997 results include a gain of $4,615,000 from the sale of a three-station television network in Puerto Rico. Tom Wilson, President of Equus, reported that the renovations of the Presidente Remon race track in Panama were completed and the track had its grand reopening on May 17, 1998, where the attendance exceeded 25,000 people, although live racing had been conducted since February 14, 1998. The races in Panama are being televised and there are 63 off track agencies on line. A telephone betting system is in place and operating and the company expects to institute telephone betting in the Dominican Republic and Puerto Rico to increase the revenues and profits during 1998. Racing revenues at El Comandante decreased during the quarter as a result of competition from an expanded slot machine operation in Puerto Rico. The company has applied for the approval to implement telephone betting which is expected to gain back any losses from the slot machine competition. Tom Wilson reported the completion of the consolidation of the Puerto Rico racing operations at Equus. This will enable the El Comandante race track to reduce its operating costs and simplify financial reporting. # # # EQUUS GAMING COMPANY L.P. Financial Highlights (Unaudited) For the Three Months Ended 3/31/98 3/31/97 3/31/97 Historical Historical Proforma (a) Revenues (b) $17,437,000 $ 9,756,000 $20,897,000 Expenses 14,467,000 1,952,000 12,983,000 Income before income taxes, minority interests (150,000) 5,058,000 4,914,000 Provision for Income Taxes 100,000 648,000 675,000 Income (Loss) before minority interest (250,000) 4,410,000 4,239,000 Minority interest --- 854,000 854,000 Net Income (Loss) $(250,000) $3,556,000 $3,385,000 Net Income (Loss) per Unit $(.04) $.56 $.53 Weighted Average Units Outstanding 6,334,000 6,334,000 6,334,000 (a) Includes all accounts of El Comandante Operating Company since January 1, 1997, as if cancellation of lease agreement was made as of such date. (b) For 1997 (historical and proforma) includes a $4,615,000 gain from the sale of the remaining 50% interest in the television stations. Ends.