ANALYSTS COMPLAIN LACK OF INFO ON RELATED PARTY TRANSACTIONS BY RESORTS

CLASSIFICATION: ACCOUNTING/AUDIT NOTIFICATION/ANALYSIS & BUSINESS PROJECTIONS
TYPE: Short Analysis / Reviews
12 January 2009

ANALYSTS COMPLAIN LACK OF INFO ON RELATED PARTY TRANSACTIONS BY RESORTS Analysts say that the lack of information on RESORTS WORLD's related party transaction (RPT) in late Nov 2008 contributed to the bearish sentiments on the stock in early Dec 2008.

" .... Investors are concerned over RESORTS's recent RPT to buy WALKER DIGITAL GAMING. There is little information on the transaction ...." reported THEEDGEDAILY.COM on Dec 2, 2008.

" .... Although the amount involved in the transaction is relatively small compared to RESORTS' cash pile, the RPT is viewed negatively as information on the deal is not properly disclosed. Investors' response has been less than warm to this ...." said the analyst.

LIM KOK THAY - the CEO and major shareholder of GENTING which controls RESORTS is a director of WDG which develops and commercialises gaming patents. RESORTS also has a call option to a 10% stake in WALKER DIGITAL LOTTERY � a company that is in the development, protection and commercialisation of patents for the lottery industry.

POOR DISCLOSURE OF INFORMATION
The poor disclosure of informationn on the part of RESORTS wiped out close to RM2 bil of market capitalisation in the first week of Dec 2008.

RESORTS insists that the partnership with WDG is expected to bring value to its operations given the synergistic fit between WDG and RESORTS. " .... It also pointed out that the purchase could allow RESORTS to differentiate its game offerings from its peers in the relatively cookie-cutter casino business ....".

RESORTS' CASH PILE & 3QE SEP 2008 RESULTS
RESORTS has a Net Cash hoard in excess of RM4.3 bil which could be used for more M&As and capital management initiatives said CIMB RESEARCH which could be used for more M&As.

RESORTS' Net Profit for 3QE Sep 2008 fell 49% to RM340m from RM668m a year earlier, which was boosted by one-off gains. Revenue for the quarter rose 9.8% to RM1.22 bil from RM1.11 bil.