REEF CASINO TRUST — Earnings Release 2003

Mar 3, 2003

News Release

4 March 2003

Reef Casino Trust profit grows by 2% to \$8.4 million Declares a 6.25 cent per unit distribution

Reef Casino Trust (Trust) announces a net profit of \$8.4 million for the financial year ended 31 December 2002. This is a 2% increase compared to the previous year's net profit of \$8.2 million.

The Trust's profits in the second half of the year exceeded \$5.5 million compared to \$4.0 million for the same period the previous year, an increase of 37%.

Mr Ben Macdonald, Chairman of the Trust said, "This is an excellent result and it was achieved despite a subdued tourism environment following September 11/Ansett, a very difficult gaming market Australia wide, a range of regulatory restrictions aimed at curbing problem gaming, a prohibition on smoking at gaming tables and considerable disruption from refurbishment activity."

The Directors of the Trust are also pleased to announce a distribution of 6.25 cents per unit for the financial period from 1 July 2002 to 31 December 2002. Together with a 6 cents per unit distribution paid for the financial period from 1 January 2002 to 30 June 2002, the total distribution for 2002 is 12.25 cents per unit. Earnings per unit rises from 16.4 cents to 16.8 cents.

Mr Macdonald said, "We are particularly pleased that the annual unit distribution has been maintained at last year's level. This is despite the Trust spending over \$2 million on a major refurbishment of the Reef Hotel Casino complex lobby floor, over \$3 million on the conservatory dome glass plus a reduction in borrowings of \$6 million."

Operating revenues of the Reef Hotel Casino totalled \$55.1 million. Gaming revenues (\$40.3 million) held steady despite a challenging regulatory environment including restrictions on note acceptor gaming machines and on smoking. Accommodation and food and beverage revenues (\$14.3 million) improved slightly even though the refurbishment of the main food and beverage outlets disrupted normal operations.

Looking ahead, Mr Macdonald said, "There a number of factors that could positively impact on the Trust's results. These include the new direct flights by Australian Airlines from six major Far Eastern cities into Cairns, the completion of the major refurbishment of the lobby floor, the introduction of new casino games and new tourist attractions, entertainment options and food and beverage offerings which are under active consideration."

ENDS

For further information:

Allan Tan Chief Financial Officer and Company Secretary Reef Corporate Services Limited Responsible entity of Reef Casino Trust Tel: 07 3232 3100 Fax: 07 3232 3111 Email: atan@casinosaustria.com.au

Peter Hook Accor Asia Pacific Tel: 02 9367 0860 Fax: 02 9367 0896 Email: hook_peter@accorhotels.com.au

Thomas Jancik Chief Executive Officer Reef Hotel Casino Tel: 07 4030 8704 Fax: 07 4030 8794 Email: ceo@reefcasino.com.au