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Harveys Casino Resorts Reports Strongest Quarter in Company History

This compares to last year's EBITDA of $17.8 million on net revenues of $77.7 million. EBITDA for the second quarter increased 69% while net revenues increased 51% from the same period last year.

This marks the 22nd consecutive quarter with an increase in net revenues and EBITDA over the same quarter in the previous year. Excluding results from Bluffs Run Casino, which was added to Harveys Casino Resorts' consolidated financials during the fourth quarter of fiscal year ended November 30, 1999, net revenues for the quarter increased 7% to $83.0 million and EBITDA jumped 12% to $19.9 million.

Including the effect of business development write-offs, net of tax, the Company posted net income of $5.3 million in the second quarter of 2000 and $1.5 million for the same period in 1999.

For the most recent six-month period, Harveys generated record EBITDA of $55.8 million on record net revenues of $226.6 million. In comparison, 1999's net revenues of $153.5 million resulted in EBITDA of $32.8 million. Excluding the Bluffs Run property, Harveys recorded impressive net revenues for the first six months of fiscal 2000 of $162.1 million with corresponding EBITDA of $37.2 million, a 14% increase over the prior year on a same-store basis.

The first six months of 2000 have been adjusted to exclude the combined effects, net of tax, of $756 thousand in business development costs that were written-off during the second quarter and $3.1 million for the cumulative effect of a change in accounting principle. Including these costs, the company posted net income of $5.9 million for the first two quarters of 2000.

Similarly, the first half of 1999 was adjusted to exclude the combined effects, net of tax, of $15.1 million for merger-related costs and non-recurring items and $869 thousand for the loss on early retirement of debt. Including these costs, the Company posted a net loss of $11.3 million for the first six months of 1999.

"This quarter's performance was the best in the Company's 56 year history," said Scharer. "We're looking forward to our summer quarter which is traditionally our strongest."

As previously announced, on April 17, 2000 a subsidiary of Harveys, PH Casino Resorts, Inc. (PHCR), entered into a definitive agreement with Pinnacle Entertainment pursuant to which PHCR will acquire by merger all of the outstanding capital stock of Pinnacle Entertainment. Consummation of the merger is subject to, among other things, various regulatory approvals, approval by the majority of Pinnacle stockholders, completion of financing for the transaction, and other conditions precedent previously announced.

Founded in 1944, Harveys Casino Resorts owns and operates Harveys Resort and Casino, a AAA Four-Diamond full-service resort at Lake Tahoe, Nevada; Harveys Casino Hotel in Council Bluffs, Iowa; and Harveys Wagon Wheel Hotel/Casino in Central City, Colorado. Harveys Casino Resorts also manages Bluffs Run Casino in Council Bluffs, Iowa.

			HARVEYS CASINO RESORTS
                  CONSOLIDATED EARNINGS SUMMARY FOR THE PERIODS
                       ENDED MAY 31, 2000 AND MAY 31, 1999
                        (unaudited, dollars in thousands)

                                Three Months Ended     Six Months Ended
                                 5/31/00   5/31/99    5/31/00    5/31/99

    Net revenues                $117,210   $77,716   $226,563   $153,464
    Interest expense, net         $9,229    $6,905    $18,991    $11,823
    Net income excluding
     merger related costs
     and non-recurring items      $6,070    $2,681     $9,817     $4,690
    Merger related costs
     and non-recurring items,
     net of tax                    $(756)  $(1,226)   $(3,898)  $(15,981)
    Net income (loss)             $5,314    $1,455     $5,919   $(11,291)

                   RESULTS OF OPERATIONS - PROPERTY BY PROPERTY
               FOR THE PERIODS ENDED MAY 31, 2000 AND MAY 31, 1999
                        (unaudited, dollars in thousands)

                                   Three Months Ended   Six Months Ended
                                   5/31/00   5/31/99   5/31/00   5/31/99
    Net Revenues
      Harveys Resort & Casino      $36,473   $32,374   $69,126   $63,523
      Harveys Wagon Wheel           13,559    13,788    27,138    28,086
      Harveys Casino Hotel          32,959    31,554    65,792    61,855
      Bluffs Run Casino             34,219        --    64,507        --
    Total Net Revenues            $117,210   $77,716  $226,563  $153,464

    Operating Income
      Harveys Resort & Casino       $7,544    $5,108   $12,230    $8,521
      Harveys Wagon Wheel            1,439     2,520     3,225     4,894
      Harveys Casino Hotel           7,224     7,010    14,321    13,486
      Bluffs Run Casino              7,562    13,229        --        --
      Corporate                     (3,925)   (3,065)   (6,778)   (5,958)
      Business Development          (1,314)   (2,013)   (1,314)   (2,149)
      Consent Fee & Merger Costs        --        --        --   (19,879)
    Total Operating Income         $18,530    $9,560   $34,913   $(1,085)

    EBITDA (A)
      Harveys Resort & Casino      $10,363    $7,510   $17,763   $13,213
      Harveys Wagon Wheel            2,463     3,506     5,286     6,829
      Harveys Casino Hotel           9,398     8,991    18,647    17,409
      Bluffs Run Casino             10,210    18,528        --        --
      Corporate                     (2,353)   (2,210)   (4,448)   (4,672)
    Total EBITDA                   $30,081   $17,797   $55,776   $32,779

    (A)  EBITDA is defined as operating income, excluding non-recurring items,
plus depreciation and amortization.
    NOTE:  Certain reclassifications have been made to prior periods to
conform to the current quarter presentation.  These reclassifications had no
effect on net income.

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