American Wagering, Inc. and Its Wholly Owed Subsidiary Leroy's Horse And Sports Place, Inc. File a Plan of Reorganization

LAS VEGAS, Feb. 23 /PRNewswire-FirstCall/ -- American Wagering, Inc. (the "Company") (BULLETIN BOARD: BETM) and its wholly owned subsidiary Leroy's Horse and Sports Place, Inc. ("Leroy's") (collectively, the "Debtors") today announced that it has filed its proposed Plan of Reorganization (the "Plan") and related proposed Disclosure Statement with the United States Bankruptcy Court for the District of Nevada, Northern Division, in Reno, Nevada (the "Bankruptcy Court").


The proposed Disclosure Statement includes detailed information about the Company's business plan, the Plan, financial estimates regarding the Company's reorganized business enterprise value including support for the "best interests" requirements for the Plan under the Bankruptcy Code, and events leading up to and during the Company's Chapter 11 case. Approval of the proposed Disclosure Statement and related voting solicitation procedures, which the Company will seek at its April 8, 2004 hearing in the Bankruptcy Court, would permit the Company to solicit acceptances for the Plan commencing in April and to seek confirmation of the proposed Plan by the Bankruptcy Court in May or June. Assuming that these milestones can be achieved, the Company would emerge from Chapter 11 on the effective date of the Plan.


Bankruptcy law does not permit solicitation of acceptance of the Plan until the Bankruptcy Court approves the proposed Disclosure Statement as providing adequate information of a kind, and in sufficient detail, as far as reasonably practicable in light of the nature and history of the Company and the condition of the Company's books and records, that would enable a hypothetical reasonable investor typical of the holder of claims or interests of the relevant class to make an informed judgment about the Plan. Accordingly, this announcement is for informational purposes only and is not intended to be, nor should it be construed as, a solicitation for a vote of the Plan.


Statements made by the Company which address activities, events or developments that we expect or anticipate may occur in the future, including certain of the information contained in the Plan and proposed Disclosure Statement, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company's current views with respect to current and future events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks and uncertainties, including but not limited to, the Company having filed for bankruptcy and factors relating to the Company's operations and the business environment in which the Company operates, which may cause the actual results of the Company to be materially different from any future results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statement include those set forth in the Company's Annual Report on Form 10- KSB for the fiscal year ended January 31, 2003, and the Company's quarterly report on Form 10-QSB for the fiscal quarter ended October 31, 2003, or in other filings made, from time to time, by the Company with the Securities and Exchange Commission. The forward-looking statements speak only as of the state when made and the company does not undertake to update such statements.


Accordingly, the Company urges that appropriate caution be exercised with respect to existing and future investments in the Company's common stock or any claims relating to pre-petition liabilities.


Source: American Wagering, Inc.

CONTACT: Timothy F. Lockinger, CFO of American Wagering, Inc.,
+1-702-735-0101, ext. 412