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Greate Bay Casino Corporation Reports Q1 Results

The decline in net revenues and resulting increase in net loss was due to a decline in software installation revenues at Advanced Casino Systems Corporation (``ACSC''), the company's sole remaining operating subsidiary. ACSC has subsequently entered into three new installation contracts which should improve revenues for the remainder of 2000.

Greate Bay had outstanding indebtedness to Hollywood Casino Corporation of $51.6 million on March 31, 2000 including $9.7 million in demand notes and accrued interest. ACSC's operations do not generate sufficient cash flow to provide debt service on the Hollywood obligations and, consequently, Greate Bay is insolvent. Accordingly, Greate Bay has commenced discussions with Hollywood to restructure its obligations and, in that connection, has entered into a standstill agreement with Hollywood. Under the standstill agreement, monthly payments of principal and interest due from Hollywood for the three months ended May 1, 2000, with respect to a note, have been deferred until June 1, 2000 in consideration of Hollywood's agreement not to demand payment of principal or interest on the demand notes outstanding to Greate Bay. There can be no assurance at this time that the discussions with Hollywood will result in a restructuring of Greate Bay's obligations to Hollywood. In addition, it is possible that any restructuring will result in a conveyance of all of Greate Bay's remaining assets, including ACSC, to Hollywood in order to satisfy Greate Bay's obligations to Hollywood. Any restructuring of Greate Bay's obligations, consensual or otherwise, will require Greate Bay to file for protection under federal bankruptcy laws.

                        GREATE BAY CASINO CORPORATION
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (Unaudited)


                                                  THREE MONTHS ENDED MARCH 31,
                                                        2000          1999

    Revenues:
      System sales and support services               $717,000     $1,905,000
      Consulting fees                                      ---        300,000
      Total revenues                                   717,000      2,205,000

    Expenses:
      Cost of sales                                    270,000      1,018,000
      Marketing                                         43,000          9,000
      System development and support services          731,000        612,000
      General and administrative                       631,000        697,000
      Depreciation                                      47,000         44,000
      Total expenses                                 1,722,000      2,380,000
    Loss from operations                            (1,005,000)      (175,000)

    Non-operating income (expense):
      Interest income                                  123,000        212,000
      Interest expense                              (1,710,000)    (3,980,000)
      Equity in earnings of Limited Partnership            ---      2,022,000
      Restructuring costs                                  ---        (82,000)
      Total non-operating expense, net              (1,587,000)    (1,828,000)
    Loss income before taxes                        (2,592,000)    (2,003,000)
    Income tax benefit (provision)                      67,000        (33,000)
    Net loss                                       ($2,525,000)   ($2,036,000)

    Basic and diluted net loss per common share         ($0.49)        ($0.39)
    Weighted average shares outstanding              5,186,627      5,186,627

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