May 2, 2005

Kenilworth Progress Update

The Indiana State Legislature ended their 2005 session on April 29th, by enacting House Enrolled Act 1120 that contained instructions to the Indiana Gaming Commission to conduct a study of how much revenue Indiana could expect by permitting live in-progress casino table games to simultaneously broadcast from one of the licensed riverboat casinos in the state to areas outside of Indiana, and what effect it would have on present casino gaming in the state, if any.

When Governor Mitch Daniels signs the legislation, which he stated he will sign, Kenilworth expects immediately thereafter to meet with members of the Commission, and the owner/operator of a casino riverboat, to commence negotiations for a comprehensive contractual agreement (which has previously been proposed by Kenilworth).

When the proposed agreements are finalized, the Company will now be able to market Roulabette™ to other State Legislatures, primarily to states that do not have casinos but offer lottery play; and which have lottery terminals in their states at horse/dog racetracks and other locations that offer simulcast racing via satellite transmission. There are more than 500 such locations that offer simulcast racing in the U.S.

Kenilworth owns the unique Patents to install microprocessors into digital satellite and digital cable set top boxes or television sets that manage the live in-progress casino table games such as Roulette, Dice, Baccarat and more. Roulabette™ allows subscribers to digital satellite and digital cable to play along and wager exactly as if they were in the casino at the table.

Exclusively licensing Lottery Terminal Operators for the cash deposits will help ensure the underaged do not participate in the casino action. Licensed Lottery Terminal Operators must observe the minimum age laws under criminal penalty. Individual States that participate in Roulabette™ will have total control of the system’s parameters within their borders.

We have a very simple solution for the U.S. law enforcement agencies, which may not, without great difficulty, prosecute the 20,000,000 American residents that visit online gambling sites from abroad every year.

What we can do is put these foreign websites out of business by offering the very same American residents to play and wager along with Real Time live in-progress casino table games. Viewers will be able to wager exactly as if they were in the casino playing at the table

Why would anyone play along with a virtual make believe casino game when they can play along with Real Time live casino games instead?

Eventually the virtual market will decline and disappear.

We will update our website as further progress is made in Indiana.

To view our Patent and Patents pending click here:

1. (Issued Patent): http://www.pat2pdf.org/patents/pat6575834.pdf

2. (Patent pending #1): http://www.pat2pdf.org/patents/pat20050085291.pdf

3. (Patent pending #2): http://www.pat2pdf.org/patents/pat20050085293.pdf

Sincerely,

KENILWORTH SYSTEMS CORPORATION

Andrew Hirko, Senior Vice President