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Canterbury Park Results Up

SHAKOPEE, Minnesota -- (PRESS RELEASE) --Canterbury Park Holding Corporation (AMEX:ECP) today announced results for the third quarter and nine months ended September 30, 2004.

The Company earned net income of $1,064,204 on revenues of $17,279,804 for the three months ended September 30, 2004, compared to net income of $575,547 on revenues of $14,981,550 for the same period in 2003. Diluted earnings per share for the third quarter of 2004 were $.26 compared to $.14 for the third quarter of 2003. Further results for the first nine months of 2004 are outlined in the accompanying table.

Revenues for the third quarter increased approximately $2.3 million, a 15% increase compared to the third quarter ended September 30, 2003. The increase in third quarter revenues is primarily due to a 24% increase in Card Club revenues when compared to the same quarter in 2003, reflecting steady growth in the Card Club's casino games and growing interest in poker games fueled by the popularity of televised poker tournaments. In addition, third quarter pari-mutuel revenues increased approximately 7% when compared to the same period in 2003 reflecting increased on-track and out-of-state wagering on live racing as well as an increase in simulcast wagering.

Operating expenses increased approximately 12% in the three months ended September 30, 2004 compared to the third quarter last year. The increase in operating expense is primarily attributable to four factors: an increase in purse related expenses due to increased revenues; an increase in salaries and benefits costs associated with the increased levels of Card Club and food and beverage operations, an increase in cost of sales due to the related increase in food and beverage revenues, and an increase in advertising and costs primarily due to increased participation in the patron loyalty program.

Commenting on results, Randy Sampson, Canterbury Park's President stated, "We are extremely proud of our strong results for the third quarter. The increasing popularity of our card games has led to yet another record quarter in the Card Club. In addition, we are pleased with the increase in pari-mutuel revenue, particularly the growth in attendance and handle for our live racing product. These increases reflect a positive response from horseplayers to our recent facility upgrades as well as the improving quality of our live racing due to purse increases made possible by the success of our Card Club."

"As we look to the future, our best potential growth opportunity still lies with our plan to seek state legislation to authorize electronic gaming devices to be operated by the Minnesota State Lottery at the Racetrack," continued Mr. Sampson. "We expect our Racino legislation will be reintroduced in the new biannual Minnesota Legislative session beginning in January 2005. We believe enacting this bill will enhance horse racing through increased purses, provide growth and development opportunities for the Company, and generate significant new tax revenues for state and local governments."

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