Asia Entertainment (NASDAQ:AERL)

HONG KONG--(BUSINESS WIRE)--Asia Entertainment & Resources Ltd. (“AERL” or the “Company”) (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter, today announced that its Board of Directors has authorized a regular semi-annual cash dividend of $0.10 per outstanding ordinary share each year after the release of the Company’s financial results for the six months ending June 30, and, for each year after the release of the Company’s financial results, an amount per outstanding ordinary share equal to (i) 15% of the Company’s non-GAAP net income for the most recently completed fiscal year less the amount paid pursuant to the immediately previous six-month dividend, divided by (ii) the number of ordinary shares outstanding on the record date for such dividend.

“We believe that the Company is adequately capitalized to significantly grow its VIP business over the long-term while at the same time returning capital to shareholders at a meaningful rate”

The record date for each period’s dividend will be set by the Company’s management to be as close as practicable to, but no less than, 15 days after the public release by the Company of the financial results for the applicable six-month period and fiscal year end. The payment date for each period’s dividend will be set by the Company’s management to be as close as practicable to, but no less than, 10 days after the record date. The first dividend will be paid after the release of financial results for the six-month period ended June 30, 2011.

The Company also announced today that its Board of Directors has authorized the establishment of a share repurchase program for the Company to purchase up to two million of its ordinary shares on the open market at prices to be determined by the Company’s management. In order to comply with our insider trading policy, the program will begin after the release of the Company’s financial results for the six-month period ended June 30, 2011 and will expire on June 30, 2012. Purchases pursuant to the program may be made from time to time in accordance with SEC rules and regulations through open market transactions, subject to market conditions, the Company’s share price and other factors. The repurchase program may be modified, suspended or discontinued at any time.

“We believe that the Company is adequately capitalized to significantly grow its VIP business over the long-term while at the same time returning capital to shareholders at a meaningful rate,” said AERL Chairman Lam. “With cage capital expected to exceed $200 million as of June 30, 2011, the Board of Directors believes that we are now in a healthy position to pay a dividend to our shareholders. In addition, the repurchase program further validates our commitment to our shareholders, as we intend to purchase shares of AERL when we believe the market does not adequately reflect the value of our business.”