The board of directors of MelcoLot Limited announced to its shareholders and potential investors that the Group is expected to record operating loss from its operations while reporting a net profit for the financial year ended December 31, 2012 as compared to the loss incurred in the financial year ended December 31, 2011. Based on the preliminary review on the unaudited management accounts of the group, the net profit of the group is mainly attributable to the offset of the operating loss of the group by the non-operational gains on disposals of the subsidiaries; and substantial decrease in impairment losses recognized in respect of intangible assets and goodwill.