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Dover Downs Reports Loss for Q4

The Company reported a net loss of $175,000 for the quarter ended December 31, 2001 and earnings on a per share basis of $.00. The results for the quarter include expenses of approximately $375,000 in organizational costs for the inaugural Grand Prix of Denver and $392,000 in pre-opening costs for the recently opened Dover Downs Hotel & Conference Center. Excluding the effect of an amendment to the casino management agreement that increased earnings by $1,353,000 after income taxes, earnings per diluted share were $.04 for the fourth quarter of last year. Revenues for the fourth quarter increased 5.9% to $47,877,000 compared with $45,221,000 for the quarter ended December 31, 2000.

Revenues for the year ended December 31, 2001 were $273,273,000 compared with $254,514,000 last year. Net earnings for the year ended December 31, 2001 were $27,966,000 or $.73 per diluted share compared with $34,066,000 or $.90 per diluted share last year. The decline in net earnings compared with 2000 is primarily from higher depreciation and interest expense from the opening of the Nashville Superspeedway, as well as the impact of weather on many of the Company's motorsports events.

In what is a seasonally slow quarter for the Company's motorsports business, the Company's October NASCAR Busch Grand National event at Memphis Motorsports Park was postponed as a result of rain, negatively impacting walk- up ticket sales when the event was held the following day.

The slot win during the quarter increased 13.2% compared with the same quarter of 2000. The slot win growth in December 2001 compared to December 2000 was the highest of any month since the last addition of slot machines in March of 2000. For the year ended December 31, 2001, slot win increased 9.4%.

On February 15, 2002, the Company opened approximately 100 rooms in the Dover Downs Hotel and Conference Center. The $75 million project is substantially on budget and on schedule and is expected to be fully operational by the end of the first quarter.

The Company has also expanded its open-wheel street racing program. A definitive agreement has been executed with the City of St. Petersburg for the Grand Prix of St. Petersburg to be held in February 2003.

The Company has finalized all necessary financing and restructuring agreements to complete the tax-free spin-off of the Company's gaming business. Once the Securities and Exchange Commission completes its review of the required filings, which is expected very soon, a record date and distribution date will be established.

This release contains or may contain forward-looking statements based on management's beliefs and assumptions. Such statements are subject to various risks and uncertainties which could cause results to vary materially. Please refer to the Company's SEC filings for a discussion of such factors.

Dover Downs Entertainment, Inc. operates a multi-purpose entertainment complex conducting NASCAR auto racing, pari-mutuel harness horse racing, pari-mutuel wagering on simulcast harness and thoroughbred horse races and video lottery (slot) machine operations in Dover, Delaware. The Company owns and operates the Nashville Superspeedway near Nashville, Tennessee; Gateway International Raceway near St. Louis, Missouri and Memphis Motorsports Park near Memphis, Tennessee. The Company also organizes and promotes the Toyota Grand Prix of Long Beach in Long Beach, California and will organize and promote the Denver Grand Prix beginning in 2002.

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