Palace Amusement Co. Ltd. (PAL) – Capital Distribution

At the Board of Directors meeting on December 18, 2001, it was decided to pay a Capital Distribution, representing such amount as will yield – after the payment of Transfer Tax in the amount of 7.5% – a net amount of $2.00 per share to each shareholder on record at January 10, 2002. The payment date will be January 31, 2002. It was decided to hold the next annual general meeting on March 12, 2002, at 1a Camp Road, Kingston.