Wednesday March 15 2006

Current Status of Negotiations with PAGCOR

Kenilworth is very close to ‘inking a contract’ with PAGCOR to broadcast live, in-progress casino table games, from the Philippines, throughout the industrialized world. 

We expect, in the next ten (10) days, to finalize issues relating to where to ‘CAP’ the annual revenue sharing payable to PAGCOR by continents: Europe, the Pacific Rim and Asian Markets, and possibly in the near future, the U.S. Market.  Revenue ‘CAPS’ are agreements that will limit the amount PAGCOR may earn annually from each continent.  The CAPS are necessary to avoid a potential major Auditing disaster by Kenilworth’s Independent Auditors.  Initially, the CAPS will favor PAGCOR since we must pay the annual agreed upon CAP whether or not the revenue is actually earned.  Once the revenue CAPS have been reached, Kenilworth will benefit more substantially with the revenue CAPPED.  All excess revenue earned belongs to Kenilworth, without further sharing. 

Our Philippines Attorneys are completing Kenilworth’s acquisition of Lighthouse Supplies and Services, Inc. (‘Lighthouse’) which is licensed to supply PAGCOR casinos with equipment, including slot machines.  Lighthouse will become a one hundred percent (100%) owned subsidiary of Kenilworth and Kenilworth’s Philippines Operating Company. Lighthouse will have a staff of approximately two hundred (200) employees comprised of TV broadcast engineers, satellite experts, television camera experts/operators and TV camera software engineers, computer (servers) monitoring personnel, and operating personnel 24/7 for the television ‘Broadcast Control Room’ (the Broadcast Control Room is necessary in order to silence obscene language by losing players – it is a must.  The TV cameras follow the action automatically and require no specially trained personnel). 

Lighthouse must be reorganized as a foreign entity doing business in the Philippines under their Securities Laws and Regulations set forth by the Philippine Legislature. 

The negotiations are technical in nature and are not a hindrance to the formal Memorandum of Acceptance (‘MOA’) a term used by PAGCOR as a follow up on the Request For Proposal (‘RFP’), Kenilworth received last month.  Given that all these final steps are in progress, the MOA may be signed, by both parties, sooner then the ten (10) days we estimated.

Forward Looking Statement
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-Q and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and Kenilworth undertakes no obligation to update such statements.

Contact: Kenilworth Systems Corp. (516) 741-1352, Roulabette@aol.com.

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