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Canterbury Park Holding Reports Q2

SHAKOPEE, Minnesota -- (PRESS RELEASE) -- Canterbury Park Holding Corporation (AMEX:ECP) today announced results for the second quarter and six months ended June 30, 2006.

The Company earned net income of $345,358 on revenues of $14,912,645 for the three months ended June 30, 2006, compared to net income of $454,149 on revenues of $14,906,919 for the same period in 2005. Diluted earnings per share for the second quarter of 2006 were $.08 compared to $.11 for the second quarter of 2005. Further results for the first six months of 2006 are presented in the accompanying table.

Revenues for the second quarter of $14.9 million increased less than 1% when compared to revenues in the second quarter ended June 30, 2005. This slight increase is primarily due to an increase in Concessions revenues of 2.3%, offset by a decrease in Card Club revenues of 1%, and virtually unchanged Pari-mutuel revenues. Operating expenses however increased approximately $375,000 or 2.7% in the three months ended June 30, 2006 compared to the second quarter last year. The increase was primarily attributable to the following factors: an increase in salaries and benefits due to the $1 per hour increase to the minimum wage mandated by the State of Minnesota in August 2005, and the implementation of SFAS 123R accounting for stock compensation expense; and an increase in purse expense from simulcast wagering.

"The flat revenues for the quarter were below our expectations," stated Randy Sampson, Canterbury Park's President, "and we are particularly disappointed to see a slight decrease in Card Club revenues compared to the second quarter of 2005. This decline was primarily due to increased competition for poker from Native American casinos in Minnesota, bar tournaments and the Internet. To address this decline, we are increasing our promotions, tournaments and player reward program to make Canterbury Park the most attractive alternative when customers in our market want to play cards. On the Pari-mutuel side, we were encouraged that the slight decrease in on-track live racing handle, due primarily to weather cancellations and delays, was offset by a slight increase in on-track simulcast handle and a significant increase in out-of-state handle on our live product. Although our weather problems have continued in July with excessive heat, we are optimistic that the live meet, which ends on Labor Day, will finish with an increase in total wagering handle."

In May, the 2006 session of the Minnesota Legislature adjourned without taking action on the Company's proposed "Racino" legislation, which would have authorized electronic gaming devices to be operated by the Minnesota Lottery at the Racetrack. "We are disappointed with the results of the 2006 legislative session," stated Mr. Sampson. "However, as public opinion surveys consistently show that Minnesotans overwhelmingly support the Racino proposal, we intend to renew our efforts to gain approval of our Racino bill in the Minnesota Legislature when next biannual session begins in January 2007."

In recognition of the Company's sound financial position, on June 1, 2006 the Canterbury Park Board of Directors declared a special cash dividend of $.25 per share of common stock, which was paid to shareholders on July 14, 2006.

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