April 27, 2007

Our answer to a question posed by one of our shareholders:

 What does the selling of state lotteries have to do with Kenilworth? The law will still prohibit the broadcast of table games.

Do you have anyone at all interested in buying your product?

Privatized lotteries need revenue from regular commercial advertising, not just advertising to play the lottery, to defray the original acquisition costs, which are very steep.  The best way is to create “Satellite Cafés” (Internet Cafés are paying off big in Asia and Europe).  All our patents, either issued or pending, are “Application Patents” which means, we hold the patents to use lottery-type terminals and TVs to place wagers on terminals to receive real time, simulcast casino table games.  Outside the United States, Internet Cafés offer virtual, make-believe casino table games.  They are programmed the same as slot machines to hold between 5%-7% of the amount wagered.  Eventually, to keep Café and home customer’s attention, you have to offer something better than make-believe.  As far as each state remaining in control of their lottery activity; that will end immediately when they privatize.  They will no longer be bound by state’s lottery regulations. 

Illinois is collecting $10 billion for their lottery.  The Governor stated that $6 billion will be spent immediately on improving school properties and teacher’s salaries; $1 billion for other state projects and $3 billion in secure investments, with expected dividends equal to what the Illinois lottery is now passing through to schools, etc.  $10 billion to amortize will take a long, long time unless the privatized lotteries can operate free of interference by the state government.  Keep in mind; lotteries are not controlled by the Federal Government (“States Rights”) unless the lottery goes across state lines, via two-way transmission.  We broadcast one-way via satellite, encrypted, which does not violate any Federal Laws.  Please read the Opinion rendered by the International Law Firm “Greenberg Traurig” on our website: www.kenilworthsys.com .

Our patent application for Multi-Use Gaming Machines will get the attention of the 130 horse/dog race tracks owners in the U.S. that are permitted to offer slot play.  Read the patent.  The Roulabette™ Slot will “tie-in” with Satellite Cafés and wagering from home, which is now permitted for simulcast racing in NY and other states.

Your question, do we have any interest in our products? To answer this question, while we are soliciting interested parties, without firm deals, would be considered touting our stock.  You simply have to analyze what Kenilworth owns and controls, current events such as oil prices reaching $80.00 a barrel by the end of this summer, SUVs piling up in dealers showrooms and state lotteries FOR SALE. They are all indications that a lot of families have problems in keeping up with their financial obligations.  We believe we will be attracted by the single members of our society, childless couples and senior citizens that sold their homes, and now reside in rental apartments and have the extra funds available to play slot machines on racetracks.  Pennsylvania authorized 65,000 slot machines to be placed at tracks and off-track betting parlors. We could go on and on but you should get the gist from these answers.

FORWARD LOOKING STATEMENT

This comment to a shareholders inquiry 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.

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