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Aladdin Cash Flow Steady

21 March 2003

LAS VEGAS –- The bankrupt Aladdin hotel-casino improved its cash flow in February thanks in part to high occupancy rates.

The Aladdin also earned a profit for the second month in a row, the company reported Thursday in a federal bankruptcy filing. Court records show that the Aladdin posted a profit of $171,201 last month, nearly doubling January's figure of $96,000.

The Strip casino bolstered its cash flow for February with $5.35 million, compared with $5.34 million in January. In February 2002 the casino had a cash flow of $1.6 million.

Cash flow, which reflects earnings before interest, taxes, depreciation and amortization (EBITDA), is a common measure of profitability in the gambling industry.

"February 2003 was a tremendous month for the Aladdin," spokeswoman Tyri Squyres said. "We improved our year-over-last monthly EBITDA performance by nearly 237 percent. This improvement was in part due to a 97 percent average occupancy rate and an average daily rate in the $113 range."

Revenue dropped slightly to $20.1 million in February after the Aladdin posted $21.4 million in January revenue. Revenue had dipped to $18.3 million in December after rising to $22.5 million in November.

The $1.4 billion casino filed for bankruptcy Sept. 28, 2001, and has been working to control its finances while it seeks a buyer. The casino has laid off one-third of its work force while adding attractions, such as a nightclub and theater for nightly entertainment.

Squyres said that the casino hopes it can keep up the positive momentum, despite the war with Iraq, which could severely affect tourism traffic to Las Vegas.

"It's the question of the day," she said. "We have not received any cancellations. But we all know the world can change on a dime."

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