RESULTS OF CHANCELLOR CORPORATION’S BEIJING PRESS CONFERENCE WERE RELEASED TODAY TO REUTERS BEIJING OFFICE

Released_By: GeraldsNet
Date: 6/27/98
Time: 2:06:49 AM

For_Immediate_Release

At a time when the international community has its doubts regarding doing business in China, the current administration has implemented a most sweeping liberal policy. Today, Reuters announces that the agreement has been ratified for first license allowing a form of wagering on horse racing in China as well as a form of on line lottery.

Chancellor Corporation, an American company and 90% owner of this license, will immediately begin construction on a 60,000 sq. ft. private club house facility to be located in the heart of Beijing. By this special license Chancellor was granted authorization to open 600 on line lottery terminals located throughout Beijing. These will be computerized lottery terminals where the people will be allowed to pick their numbers at random.

In addition to the 60,000 sq. ft. clubhouse facility to be built immediately. Chancellor has signed a 30 year renewable lease on 258 acres for the construction of a world class horse racing track similar to the one in Hong Kong, which is the largest dollar volume track in the world. This will be the only track in China were wagering will be allowed both on and off track..

This change of governmental policy comes at a time when President Clinton is hosting Premier Jiang Zemin in Washington. Ron Sparks, Chairman of Chancellor Corporation, stated " The significance of this license being granted to an American company sends a message to the international business community that they are welcome in China. It clearly demonstrates the willingness of the present regime to protect the foreign investor."

Further information on Chancellor Corp. can be found on the Company’s web-site http://www.celr.com, or contact Donna Silverman at inbeijing@aol.com. Phone 973.398.2758 for additional information.

Chancellor Corp. will focus on three areas of immediate interest to the Chinese people, the first being the lottery operations, run by Peter Lynch, formerly head of the New York State Lottery. Mr. Lynch is currently exploring the opening of 600 locations with some of the largest lottery sales company operators world wide. It is expected that OTB terminals will also be available at these locations.

Negotiations are underway with one of the largest membership management organizations to manage the large membership base expected to be generated through this project. Memberships will be on sale immediately and will start out in the 100,000 dollar range (US). Elegance, sophistication and five star services will be the hallmark for the Beijing Dadu Jockey Club and will include a myriad of recreational facilities such as indoor bowling, swimming, golf, world class dining facilities and electronic and table gaming; this facility will be the only one of its kind in China.

" This is only the beginning" stated Mr. Sparks; " We are looking forward to a long and mutually rewarding future with the Chinese people."

For Further Information: Chancellor Corporation, Donna Silverman, Investor Relations Email: inbeijing@aol.com Telephone: 973.398.2758 Facsimile: 973.398.9630