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Choctaw Enterprise Reports Q2 Results Down

7 May 2002

CHOCTAW RESERVATION, Mississippi --(Press Release) -- The Choctaw Resort Development Enterprise (CRDE) today announced revenues and results for its second quarter, which ended March 31, 2002.

Net revenues for the quarter were $63.1 million compared to $64.1 million for the quarter ended March 31, 2001. The $1.0 million, or 1.6%, decrease in net revenues was primarily due to a decrease in gaming revenues. Net revenues for the six months ended March 31, 2002 were $120.3 million compared to $121.3 million for the six months ended March 31, 2001. The $1.0 million or 0.8%, decrease in net revenues was primarily due to a decrease in gaming revenues. Complimentary revenues are included in gross revenues but are deducted as a promotional allowance to arrive at net revenues.

"As we move further into the new fiscal year, we continue to enjoy another strong quarter and are tracking ahead of our projections," said Jay Dorris, president of the CRDE. "Our slot revenues have increased, construction on the Golden Moon continues on schedule with our recent topping off ceremony and overall resort operations remain strong."

Operating income was $30.6 million for the quarter ended March 31, 2002 compared to $32.5 million for the quarter ended March 31, 2001, a decrease of $1.9 million, or 5.8%. The decrease for the quarter was primarily due to the revenue variations discussed above and to expense variations. Operating income was $53.4 million for the six months ended March 31, 2002 compared to operating income of $57.8 million for the six months ended March 31, 2001, a decrease of $4.4 million or 7.6%.

"We remain optimistic on our progress and current operations. Our vision in creating a comprehensive resort destination with the opening of the Golden Moon continues on track with all signs in our current business indicating solid support from our customers," Dorris added. "With the topping off of Golden Moon, we are focused on the rapid completion and opening of this new world-class facility."

The Enterprise will file its Quarterly Report on form 10-Q for its quarter ended March 31, 2002 on or about May 10, 2002.

EBITDA for quarter ended March 31, 2002 was $34.3 million compared to $35.7 million for the quarter ended March 31, 2001, a decrease of $1.4 million or 3.9%.

"EBITDA" means earnings before interest, taxes, depreciation, amortization, certain non-cash items and certain non-recurring items. The only non-cash items were other income for the quarter ended March 31, 2002 and other expense for the quarter ended

March 31, 2001 related to the change in the fair value liability of the Enterprise's interest rate swap agreement and the only non-recurring item was the pre-opening expenses of $114,808 for the quarter ended March 31, 2002.

EBITDA is presented because management believes it is a widely used measure of operating performance in the gaming industry. EBITDA is not a measure under generally accepted accounting principles ("GAAP") and should not be construed as an alternative to operating income (as determined in accordance with GAAP) as an indicator of cash flows or a measure of liquidity. All companies do not calculate EBITDA in the same manner. As a result, EBITDA as presented here may not be comparable to a similarly titled measure presented by other companies.

Through March 31, 2002, $148.5 million of the budgeted $290.6 million Golden Moon construction has been completed through proceeds from the $200.0 million note offering, and contributions of cash and property and equipment from the Tribe. The Enterprise anticipates the remaining $142.1 million of budgeted expenditures to be financed from cash on hand and short-term investments, which includes the balance of the proceeds from the $200.0 million note offering and our $125.0 million revolving credit facility. It is anticipated that the revolving credit facility will remain un-drawn until the latter part of May 2002, when it will become necessary to use the proceeds from this facility, together with the net proceeds of the offering of the notes, to complete the Golden Moon. The Golden Moon is expected to be completed and opened in August 2002.

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