Burnaby, b.c. gateway casinos income fund the "fund" or "gateway" ; tsx: gci.un ; , one of the largest casino operators in western canada, today reported its financial results for the threeand six-month periods ended june 30, 2007. q2 2007 summary o total revenue of .4 million, compared with .8 million in q2 2006. o ebitda * of .5 million, compared with .9 million in q2 2006. o net loss of $ 19.6 ; million, or $ 0.6 1 ; per basic unit, compared with net earnings of .8 million, or ##TEXT##.38 per basic unit, in q2 2006. the second quarter results included a one-time .5 million non-cash charge to earnings to record the future income tax liability resulting from the federal government's passing into law of a new tax on income trusts effective beginning 2011. o generated distributable cash of .2 million, or ##TEXT##.319 per unit, and paid distributions of .1 million, or ##TEXT##.375 per unit. o entered into a support agreement with new world gaming partners ltd. providing for the acquisition by new world gaming of all of the outstanding units and convertible debentures of the fund. o subsequent to quarter end, reached an agreement with the united food and commercial workers union to end the strike at the palace casino in edmonton, alberta. "the second quarter results were highlighted by strong slot machine revenue overall and continued solid organic growth at our cascades and lake city facilities, " said dave gadhia, ceo of gateway casinos g.p. inc. "this helped offset the declines at our palace casino caused by the employee strike. we are pleased to have a resolution in place at the palace casino and a foundation for a solid working relationship with the union and employees going forward. we are working to restore the casino to full operation as quickly as possible, which should have a positive impact on our consolidated results in the coming quarters." consolidated revenue for the second quarter of 2007 increased 11% over the second quarter of 2006 to .4 million. revenue from the cascades facility was .2 million for the second quarter of 2007. excluding cascades, revenue from gateway's other casinos was .2 million, a decrease of 9.3% from the second quarter of 2006. strong slot machine revenue growth helped offset the revenue impact of the strike at the palace casino. revenue from the palace casino declined by 69.9% over the same period last year to .6 million. gateway's total revenue from slot machines and other electronic games increased 16.2% over the prior year to .3 million. table games revenue for the second quarter of 2007 was .0 million, compared with .7 million in the same quarter last year.

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