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Choctaw Resort Development Revenues Up

CHOCTAW RESERVATION, Mississippi -- (Press Release) -- The Choctaw Resort Development Enterprise (CRDE) today announced revenues and results for its third quarter, which ended June 30, 2003.

Revenues continued to increase with net revenues at $74.3 million and $60.4 million for the quarters ended June 30, 2003 and 2002, respectively. The $13.9 million, or 23.0% 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.

"Our overall revenue growth remains steady as a result of our launch of the Golden Moon where we have seen increases in all operating areas, including gaming, food and beverage, lodging and other revenues such as retail and convention sales," said Jay Dorris, president of the CRDE. "We remain committed to the whole resort concept we launched with the hospitality institute, Dancing Rabbit Golf Course, and the Geyser Falls and Clearwater Key attractions contributing significantly to our visitation growth."

Gaming revenues grew $10.8 million, or 19.7%, to $65.6 million for the quarter ended June 30, 2003 from $54.8 million for the quarter ended June 30, 2002. During the same period, food and beverage revenues were $7.9 million, an increase of approximately $2.9 million, or 58.0%, from $5.0 million for the quarter ended June 30, 2002. Room revenues were $4.4 million for the quarter ended June 30, 2003 compared to $2.3 million for the quarter ended June 30, 2002.

Other revenues increased $2.0 million to $5.2 million for the quarter ended June 30, 2003 from $3.2 million for the quarter ended June 30, 2002. Other revenues are comprised primarily of revenue from the casino's various retail outlets, the convention center, fees earned from cash advances to customers, other miscellaneous items, Dancing Rabbit, Geyser Falls and the Choctaw Hospitality Institute.

Operating income was $19.7 million for the quarter ended June 30, 2003 compared to $26.3 million for the quarter ended June 30, 2002, a decrease of $6.6 million, or 25.1%.

The Enterprise will file its Quarterly Report on form 10-Q for its quarter ended June 30, 2003 on August 14, 2003.

EBITDA for the quarter ended June 30, 2003 was $27.5 million compared to $30.3 million for the quarter ended June 30, 2002, a decrease of $2.8 million or 9.2%.

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.

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