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Choctaw Resort Development Enterprise Reports Growth

Revenues continued to increase with net revenues at $68.5 million and $57.2 million for the quarters ended December 31, 2002 and 2001. The $11.3 million, or 19.8% increase was primarily attributable to gaming, food and beverage and other revenue from the Golden Moon. Complimentary revenues are included in gross revenues but are deducted as a promotional allowance to arrive at net revenues.

"The strong opening we had with the Golden Moon contributed to the increases we experienced in our gaming, food and beverage and lodging revenues. It is an auspicious start to our new property and we are pleased with the positive reception from our customers," said Jay Dorris, president of the CRDE. "Our strategic vision of building a resort destination is proving to be right as our next quarter continues this trend."

Revenues grew in all areas with gaming revenues increasing $8.4 million, or 15.7%, to $61.9 million for the quarter ended December 31, 2002 from $53.5 million for the quarter ended December 31, 2001. During the same period, food and beverage revenues were $7.4 million, an increase of approximately $2.0 million, or 37.0%, from $5.4 million for the quarter ended December 31, 2001. Room revenues were $3.8 million for the quarter ended December 31, 2002 compared to $2.0 million for the quarter ended December 31, 2001.

Operating income was $15.3 million for the quarter ended December 31, 2002 compared to $22.7 million for the quarter ended December 31, 2001, a decrease of $7.4 million, or 32.6%.

"In looking at our operating income, our decrease resulted largely from the start up of our operations at the Golden Moon. We are focused on better control of our costs and expenses as we move forward and greater understanding of our customers' experiences with multiple properties and attractions," Dorris added. "We experienced a spike in expenses with the addition of the Golden Moon, and our efforts to control costs has required adjustment of our processes to achieve the operating efficiencies we expect."

The Enterprise will file its Quarterly Report on form 10-Q for its quarter ended December 31, 2002 on or about February 13, 2003.

EBITDA for quarter ended December 31, 2002 was $22.3 million compared to $26.5 million for the quarter ended December 31, 2001, a decrease of $4.2 million or 15.9%.

As a result of the lower than expected EBITDA during the December Quarter, management recognized impending exceptions to the covenant ratios for the quarter related to the Fixed Charge Coverage Ratio and the Total Leverage Ratio as contained in the Enterprise's Bank Facility. The Enterprise has secured a waiver from the lender(s) for these covenant ratio exceptions incurred during the December Quarter.

Management also recognizes the likely potential for future quarter non-compliance with the covenant ratios and has entered into negotiations with the lender(s) to develop an amendment to correct the situation. According to Jay Dorris, "We have been in conversations with our bank since December to secure covenant relief on a going forward basis. Rather than rush our projections that will allow us to predict needed ratios during these uncertain economic times, we want to consider as many days of actual results as possible while still securing an amendment that provides relief by the end of the second quarter." While management has no guarantee regarding the needed amendment, we note the continued and positive efforts between management and the lender(s) to reach agreement and produce the needed amendment within our anticipated time frames.

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