For immediate release

Brisbane, 20.02.2008 --- The Reef Casino Trust (RCT) reported a net profit after tax of $12.8 million for the year ended 31 December 2007 (including a reversal of previous impairment of $2.8 million). This compares with last year's net profit after tax of $13.5 million.

The Chairman of the Reef Casino Trust, Mr. Ben Macdonald said, 2The Reef Hotel Casino's underlying businesses remained strong, with continued growth in both gaming and hotel operations, however, this performance was let down only by a below theoretical/normalised premium play win rate. A 2007 result similar to that of 2006 (a record profit year) would have been the result if the theoretical/normalised premium play win rate was achieved."

EBITDA (earnings before interest, tax, depreciation and amortisation) was $16.8 million (2006: $19.6 million). Earnings per unit on an operating basis remained healthy but lower, at 20.2 cents (2006: 27.1 cents).

The Directors of the Trust declared a second half year distribution of 13.5 cents per unit on a "tax deferred" basis to be paid on 27th March 2008. 12.3 cents was sourced from "100% of second half distributable profits" and 1.2 cents was sourced from the "undistributed income account". Together with the first half year distribution of 15.5 cents per unit, the total distribution for the year was 29 cents. It remains the Trust's policy to make unit distributions from out of the "undistributed profit" account on a relatively even basis over the next 2 years.

In accordance with the Trust Constitution, the Reef Hotel Casino complex was independently valued as at 30th June 2007 by Jones Lang La Salle at $171 million. This value provided an increase of $42.5 million or 33% over the property's previous book value. This is a positive outcome for the Trust and has resulted in the Trusts balance sheet strengthening considerably.

As a consequence of this increased valuation of the Reef Hotel Casino Complex property, responsible entity fees for the year have also increased by $312,000. Depreciation and amortisation was also up by $584,000 (no cash outflow, retained in Trust). Otherwise, Trust costs were well controlled.

Mr. Allan Tan, Chief Executive Officer of The Reef Hotel Casino said, "In 2007, the Reef Hotel Casino reported strong key performance indicators across its casino and hotel operations even though tourism in the Cairns region, particularly from Japan was soft. The tourism industry had to counter a strong Australian dollar, especially against the Japanese Yen. Additionally, the Queensland government smoking ban first introduced in July 2006 had a negative impact on gaming venues."

• Casino still recorded over 1.3 million visitations, just 3.3% fewer than last year
• Sofitel room accommodation revenue grew by 0.5%
• Food and beverage revenues increased by 3.2% and 7.2% respectively
• Electronic gaming machine revenues grew by 1.9%
• "Grind" or main floor table games revenues improved by 3.2%
• Premium play business was markedly up with "drop" and "turnover" increasing by 15.6% and 84.4% respectively let down only by a below theoretical/normalised win rate

Mr. Tan continued, "Simply put, our premium players have been lucky. Short term fluctuations are not unusual and are to be expected and are a reflection of premium play in particular and the casino business as a whole and therefore we remain optimistic in the mid to longer term."

The Trust reports that it does not have any external loans maturing until September 2012.

Commenting on the outlook for 2008, Mr. Macdonald concluded, "The tourism industry in Cairns and Far North Queensland is expected to remain flat in the next 12 months but new flights from Macau into Cairns is a possibility in 2008. The casino has fully recovered from the government's smoking ban with electronic gaming machine revenues expected to grow. With premium play, casino management will be focussed on developing the business further and any improvement in the win rate towards the theoretical/normalised rate would contribute to an improvement in the Trust's results in 2008. As the Trust's tax losses are steadily being used up, the Trust is on the lookout for suitable expansion opportunities."

For further information, please contact:

Allan Tan
Chief Executive Officer
Reef Hotel Casino
Tel: 07 4030 8888
Fax: 07 4030 8794
Email: allant@reefcasino.com.au

Peter Hook
Director of Communications
Accor Asia Pacific
Tel: 02 9280 9888
Fax: 02 9280 9898
Email: peter.hook@accor.com

REEF CASINO TRUST
Level 1, Mercure Hotel, 85-87 North Quay, Brisbane QLD 4000, Australia
PO Box 12072 George Street, Brisbane QLD 4003, Australia
Tel: 07 3211 3000, Fax: 07 3211 4777

Managed by Reef Corporate Services Limited - ABN 66 057 599 621