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Butler National Corp. and Miller & Schroeder Investments Corp. to Finance Oklahoma Indian Gaming Facility

OLATHE, Kan. -- Butler National Corp. (NASDAQ: BUKS) has signed a best efforts financing agreement with Miller & Schroeder Investments Corp., of Minneapolis, to provide funding to its wholly owned subsidiary, Butler National Service Corp. ("BNSC").

The agreement is for Miller & Schroeder to arrange for the financing of $1,850,000 to be used by BNSC to advance funds to complete the Stables, a joint venture gaming establishment owned by the Miami and Modoc Tribes of Oklahoma and managed under an NIGC-approved contract by BNSC. The proposed financing is a loan to BNSC with a Butler National guarantee at a favorable interest rate for a term of five years.

The Stables is a limited Class III (off-track betting) and Class II (high-stakes Indian bingo) casino located in Miami, Okla. When completed, the Stables will be approximately 24,000 square feet and cost approximately $3,500,000. BNSC has advanced approximately $1,700,000 for land improvements and toward the completion of the building. All governmental and regulatory approvals to construct and operate the Stables have been received by the Tribe and BNSC.

While Miller & Schroeder Investments Corp. makes no guarantee that the loan can be arranged, its experience in placing over $600,000,000 in gaming-related loans makes the firm highly confident that it can arrange the final financing for the Stables.

"This financing should allow the completion of the Stables in time for the summer 1998 tourist season," commented Clark D. Stewart, president of Butler. "We expect the Stables to draw customers from the nearby popular tourist areas of Missouri, Oklahoma and Arkansas, including famous Branson, Mo."

Butler National Corp. operates in the aerospace and services business segments. The Services segment includes food distribution, electronic monitoring of water pumping stations, temporary employee services, Indian gaming management services, and administrative management services. Aerospace includes the manufacture of airborne electronic switching equipment for Boeing and structural modification of business aircraft.

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