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Empire Resorts Reports Q2 Results

LAS VEGAS -- (PRESS RELEASE) -- Empire Resorts, Inc. (NASDAQ: NYNY) today reported financial results for the second quarter and six months ended June 30, 2006.

Net revenue for the second quarter was a record $25.9 million, up 18% from the $22.0 million reported in the second quarter of 2005. Revenue from racing increased by approximately $1.6 million, or 44%, reflecting higher revenue allocations from off-track betting facilities, while revenue from the company's video gaming machine (VGM) business rose by approximately $2.3 million, or 13%. Empire's VGM operations experienced an increase in daily visits of approximately 5%.

Excluding the write-off of $2.3 million in development expenses in the prior-year period, operating costs rose by approximately $3.3 million, or 16%, for the quarter versus the second quarter of 2005, reflecting the rise in revenue. The company posted operating income of $1.3 million this quarter, versus a loss of $(1.6) million in the prior-year period, including the impact of the $2.3 million write-off. EBITDA improved to $1.6 million from negative $(1.3) million in the second quarter of 2005. The company posted a net loss for the second quarter of $(0.8) million, or $(0.03) per diluted share, compared with a net loss of $(3.1) million, or $(0.12) per diluted share, in 2005.

For the first six months of fiscal 2006, Empire reported net revenue of $48.5 million, versus $38.6 million in the same period last year. EBITDA was $1.7 million for the first two quarters of 2006, as compared to negative $(2.8) million in 2005. Empire's net loss for the period was $(3.0) million, or $(0.11) per diluted share, versus a net loss of $(6.4) million, or $(0.24) per diluted share, last year.

"We continue to make improvements to our core operations, with the company's VGM business recording its best performance ever," commented David Hanlon, CEO and president. "We are also pleased with the progress made this quarter with regard to bringing a St. Regis Mohawk casino to the Catskills. As previously disclosed, our partners, the St. Regis Mohawks, submitted a modified Environmental Assessment to the Department of the Interior's Bureau of Indian Affairs in early July. We have been working closely with the Tribe and the BIA to complete this phase of the approval process. Although there is no set deadline for this review, we are optimistic about a conclusion in the near future. In the meantime, we have been meeting with architects, designers, and planners to facilitate a quick transition once final approvals are received. We look forward to working with Governor Pataki and the St. Regis Mohawks to bring a world class casino to the Catskills."

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