GB Holdings, Inc.

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International Guild of Hospitality & Restaurant Managers

GB Holdings, Inc. (AMEX:GBH)

c/o Sands Hotel & Casino
Indiana Avenue & Brighton Park
Atlantic City, NJ 08401

Phone: (609) 441-4517
Email: sands@sandsac.com
Employees (last reported count): 3,000

GB Holdings, Inc. owns the Sands Hotel and Casino located in Atlantic City, New Jersey. The Sands is located on approximately 6.1 acres of land one-half block from the Boardwalk at Brighton Park between Indiana Avenue and Dr. Martin Luther King, Jr. Boulevard. The Sands facility consists of a casino and simulcasting facility with approximately 77,000 square feet of gaming space containing approximately 2,010 slot machines and approximately 69 table games; a hotel with 532 rooms (including 59 suites); six restaurants; one cocktail lounge; two private lounges for invited guests; an 800-seat cabaret theater; retail space; an adjacent nine-story office building with approximately 77,000 square feet of office space for its executive, financial and administrative personnel; the "People Mover," an elevated, enclosed, one-way moving sidewalk connecting the Sands to the Boardwalk using air rights granted by an easement from the City of Atlantic City, and a garage and surface parking for approximately 1,750 vehicles.

In 2001, the Sands introduced the "Value Gaming" concept. The general concept in Value Gaming is to provide the customer with the best possible gaming experience for the amount of time that the customer is on property. Whether that experience is enhanced by competitive odds on games, the ability to find a food outlet that provides an affordable food product, or superior service, the intent is to provide the patron with an expanded and improved entertainment experience that would lead to an increase in subsequent trips.

The Sands invested approximately $4.6 million in new slot machines, gaming equipment and casino renovations. The Boardwalk Buffet reopened after renovations in the summer of 2001, providing guests with an expanded buffet outlet featuring a wide variety of culinary choices at an affordable price in a nostalgic Atlantic City atmosphere.

With the ongoing upgrades to the property, the Sands will be able to broaden its appeal to both the higher-value repeat patrons, as well as increase its marketing effort toward the mid-level and mass segment of the gaming market. Although the Sands facility will still not compare in size, rooms and amenities to other premium properties in Atlantic City, the Sands' strategy to introduce the concept of Value Gaming to the market should appeal to all segments and provide for a competitive offset to the shortfall in property size.

As part of the Sands capital expenditure program, certain improvements, additions and enhancements have been made, or are planned to be made, to the facility, including slot machines, other gaming equipment and physical plant renovations. These additions and enhancements will primarily benefit guests in a variety of services and will compliment the Value Gaming marketing strategy.

The Sands uses sophisticated information technology that enables it to track and rate patrons' play through the use of identification cards, which it issues to patrons (casino players' cards). All Sands slot machines are connected with, and information with respect to table games activity can be input into, a computer network. When patrons insert their casino players' card into slot machines or present them to supervisors at table games, meaningful information, including amounts wagered and duration of play, is transmitted in real-time to a casino management database. The information contained in the database facilitates the implementation of targeted and cost-effective marketing programs, which appropriately recognize and reward patrons during current and future visits to the Sands. Certain of these marketing programs allow patrons to automatically obtain complimentaries based on levels of play. Such complimentaries include free meals, hotel accommodations, entertainment, retail merchandise, parking and sweepstakes giveaways.

The Sands faces competition from 11 other casinos in Atlantic City including Caesar's Palace, Bally's Park Place, the Claridge, the Tropicana and others.

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The data included within the Financial section is solely for information and does not construe a recommendation and/or endorsement by IGHRM or its members to invest funds with any of the companies listed. You are strongly advised to obtain professional advice with qualified individuals or corporations for any investments of funds.

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