RED DEER, ALBERTA--(Marketwire - March 14, 2011) - Gamehost Inc. ('Gamehost', the 'Company') (TSX:GH) Management and Directors of Gamehost Inc. ("Gamehost", the "Company", the "Corporation") are pleased to present results for the twelve months ended December 31, 2010 (the "Period") and three months ended December 31, 2010 (the "Quarter"). Fresh New Start Effective December 31, 2010, Gamehost Income Fund converted to a high yielding dividend paying corporation, Gamehost Inc. (the "Conversion"). All issued and outstanding units of the former Fund were exchanged for Shares. Effective May 1, 2010, Gamehost acquired (the "Acquisition") an additional 51% of the Deerfoot Inn & Casino (the "Deerfoot"). The change in ownership position required Gamehost to change the method used to report results of the Deerfoot. Gamehost's Financial Statements and Management Discussion and Analysis ("MD&A") report 100% of the Deerfoot results from the effective date of the Acquisition compared to a proportionate 40% interest prior. A single line entry representing the non-controlling interest (NCI) of 9% of equity and net operating results are recorded on the balance sheet and income statement respectively reducing the net post-Acquisition results from the Deerfoot to the Company's ownership of 91%. Deerfoot Boost Quarterly operational revenue for the Company inclusive of a NCI totaled $18.2 million compared to $11.8 million for the same quarter in 2009, a 54% increase. Annual operational revenue for the Company inclusive of a NCI totaled $63.7 million compared to $48.1 million for 2009, a 32% increase. Earnings for the Quarter before interest, taxes, depreciation and amortization ("EBITDA") of the Company excluding NCI gained $2.5 million to $7.4 million compared to $4.9 million for the same quarter in 2009, a 49.8% increase. For the Period, EBITDA of the Company excluding NCI gained $5.3 million to $26.9 million compared to $21.6 million for 2009. The Acquisition is the major factor in the overall year over year increase. A three percentage point decline in EBITDA margin to 40.6% in the Quarter versus the third quarter is explained by the cyclical effect of the holiday season's strong banquet sales which have higher operating costs than other revenue streams. Costs related to the Company's transition to new reporting standards ("IFRS") and Conversion costs contributed to lower margins for the Quarter. Lower overall ongoing EBITDA margin percentages should be expected and are attributable to the Deerfoot's higher operating costs as compared to the Company's other properties. Otherwise, the Company has managed margins across all properties tightly by keeping costs in line with flatter sales. All individual properties reported flat to improved EBITDA margin percentages for the Period. With costs trimmed and Conversion costs behind us, watch for higher margins as revenues improve in 2011. Healthcare Headlines On July 20, 2010, Alberta's Premier, Ed Stelmach announced the provincial government was moving ahead with a new 200 bed acute-care hospital for the City of Grande Prairie. The site for this $520 million hospital, to begin construction in 2011, is located directly behind and adjacent to the Company's Service Plus hotel and Great Northern Casino. This project is expected to boost guest room sales and casino traffic during construction and following completion of the project. The new hospital will also spawn additional commercial and residential development in the immediate area also to the Company's benefit. The province plans to break ground in April 2011. Our Service Plus hotel will bid on the contract to house construction crews. Work continues on the $1.25 billion South Health Campus in Calgary, located south of the Deerfoot. This project, like the one in Grande Prairie, will increase the market area for the Deerfoot substantially as it is built out and ancillary development follows. The project is slated for a late 2012 opening. Some additional business volume has materialized from the project and is expected to pick up as the project moves from its present infrastructure phase, which is being largely handled by local contractors, to the fixturing phase which should involve more out of province contracting. Grossed Up Not Out The Acquisition and Conversion provided an effective response to the end of the otherwise favoured tax status of the trust model at the end of this calendar year. The Acquisition has boosted cash flows which will offset corporate taxes as they become payable. The Conversion together with the Acquisition and an improving economy set the stage for sustained distributions at their current rate of $0.0733 per unit for the foreseeable future. Cash distributions in 2011 will be treated for shareholder tax purposes as eligible dividend income. Eligible dividends, following a gross up calculation receive an enhanced dividend tax credit. Shareholders, therefore, will benefit from a more favourable tax rate as a result. /T/ Consolidated Statements of Income and Comprehensive Income (audited) (unaudited) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- twelve months ended three months ended December 31 December 31 ---------------------------------------------------------------------------- 2010 2009 2010 2009 ---------------------------------------------------------------------------- Revenue Hotel - rooming $10,120,214 $ 6,453,573 $ 2,789,797 $1,443,061 Table games 9,605,088 7,961,953 2,602,061 1,775,752 Slot machines 22,729,005 18,779,089 6,049,156 4,516,247 Food and beverage services 15,609,708 10,722,477 5,022,519 3,029,545 Lease and rental 392,052 372,865 96,373 101,511 Other 5,217,410 3,792,262 1,620,173 922,269 ---------------------------------------------------------------------------- 63,673,477 48,082,219 18,180,079 11,788,385 ---------------------------------------------------------------------------- Operating Expenses Cost of goods sold 4,816,802 3,332,268 1,513,307 933,370 Human resources 17,949,347 12,740,229 5,305,294 3,103,832 Marketing and promotions 2,767,782 2,119,726 793,018 576,964 Operating 7,522,170 5,972,307 2,201,935 1,599,577 Corporate and general administration 2,831,039 2,301,981 666,115 652,218 Amortization of property, plant & equipment 3,711,261 1,890,581 1,343,111 468,250 ---------------------------------------------------------------------------- 39,598,401 28,357,092 11,822,780 7,334,211 ---------------------------------------------------------------------------- Operating income 24,075,076 19,725,127 6,357,299 4,454,174 Other income and (expenses) Gain on revaluation of assets 27,083,015 - - - Interest charges (1,940,637) (813,899) (614,676) (229,201) Debenture Interest (2,430,542) - (859,375) - Guarantee payments - (4,551,000) - 449,000 ---------------------------------------------------------------------------- 22,711,836 (5,364,899) (1,474,051) 219,799 ---------------------------------------------------------------------------- Income before taxes and discontinued operations 46,786,912 14,360,228 4,883,248 4,673,973 Future income tax recovery(expense) 219,511 276,816 (70,664) (39,882) Discontinued operations - (4,627,574) - - ---------------------------------------------------------------------------- Net and comprehensive income 47,006,423 10,009,470 4,812,584 4,634,091 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Net and comprehensive income attributable to: Class B LP unitholders' $20,447,245 $ 4,426,491 $ 2,004,254 $2,049,336 Fund unitholders' 25,789,396 5,582,979 2,527,892 2,584,755 Non-controlling interest 769,782 - 280,438 - ---------------------------------------------------------------------------- $47,006,423 $10,009,470 $ 4,812,584 $4,634,091 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Net and comprehensive income/unit basic Continuing operations $ 2.191 $ 0.693 $ 0.215 $ 0.220 Discontinued operations - (0.219) - - ---------------------------------------------------------------------------- $ 2.191 $ 0.474 $ 0.215 $ 0.220 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Net and comprehensive income/unit -diluted Continuing operations $ 1.965 $ 0.693 $ 0.205 $ 0.220 Discontinued operations - (0.219) - - ---------------------------------------------------------------------------- $ 1.965 $ 0.474 $ 0.205 $ 0.220 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Weighted average # of outstanding units - basic 21,107,553 21,107,553 21,107,553 21,107,553 Weighted average # of outstanding units - diluted 24,772,097 21,107,553 26,271,872 21,107,553 /T/ March 2010 Dividend Gamehost has declared a cash dividend for the month of March 2011 of $0.0733 per common share. The dividend will be paid on April 15, 2011 to shareholders of record on March 31, 2011. The ex-dividend date is March 29, 2011. This dividend is considered an "Eligible Dividend" in accordance with Bill C-28 and, therefore, eligible for the enhanced gross-up and dividend tax credit available to shareholders. Gamehost is a corporation established under the laws of the Province of Alberta. The Company's operations are all located in the Province of Alberta, Canada. Operations of the Company include the Boomtown Casino in Ft. McMurray, the Great Northern Casino, Service Plus Inns & Suites hotel and a strip mall all located in Grande Prairie. The Company also holds a 91% ownership position in Deerfoot Inn & Casino Inc. in Calgary. This press release may contain forward-looking statements. Forward-looking statements may contain words such as "anticipates", "believes", "could", "expects", "indicates", "plans" or other similar expressions that suggest future outcomes or events. Use of these statements reflect reasonable assumptions made on the basis of management's current beliefs with information known by management at the time of writing. Many factors could cause actual results to differ from the results discussed in forward-looking statements. Actual results may not be consistent with these forward-looking statements. This press release is not a suitable source of information for readers who are unfamiliar with the Gamehost. Readers more familiar with the Company should not consider this press release a substitute for reading the financial statements and MD&A. Consolidated financial statements and MD&A, both current and historical, are available on the Company's website at and will be filed in their entirety along with the Company's other continuous disclosure documents, when they are available, on SEDAR at Gamehost common shares and convertible debentures trade on the Toronto Stock Exchange (TSX) under the symbols GH and GH.DB respectively.

Contact Information: Gamehost Inc. Craig M. Thomas (877) 703-4545 (403) 340-0683 (FAX) or Gamehost Inc. Darcy J. Will (877) 703-4545 (403) 340-0683 (FAX)