Inn of the Mountain Gods Casino Revenue Up

29 June 2005

MESCALERO, New Mexico -- (PRESS RELEASE) -- Inn of the Mountain Gods Resort and Casino ("IMGRC"), a business enterprise of the Mescalero Apache Tribe (the "Tribe"), reported today that net revenues for fiscal 2005 were $93.0 million, an increase of $12.1 million, or 14.9%, from $80.9 million for fiscal 2004. For the fourth quarter ended April 30, 2005, net revenues were a record $26.0 million, an increase of $3.9 million, or 17.6%, from $22.1 million for the comparable period in the prior year. Increases in net revenues were primarily attributable to increased gaming, rooms and food and beverage revenues (in part due to the soft opening of the new resort on March 15, 2005) and an increase in recreational revenues related to increased lift ticket sales this period over the same period in the prior year. Adjusted EBITDA for fiscal 2005 was $28.5 million as compared to $29.1 million for fiscal 2004. For the fourth quarter ended April 30, 2005, adjusted EBITDA was $5.8 million as compared to $7.4 million for the 2004 fourth quarter.

Michael French, Chief Operating Officer of IMGRC, stated: "We reached a significant milestone in the fourth quarter with the soft opening of our new resort on March 15, 2005. The initial results have been very gratifying as we experience the return of our resort guests to complement our local market clientele and day trippers." Mr. French went on to say, "As expected, we did feel the impact on our business volumes during the fourth quarter from the disruption caused by the closing of the old casino on February 21, 2005 followed by the soft opening of our new resort on March 15, 2005. Since March 15, 2005, the results reflect increased operating expenses due to higher planned staffing levels for the purpose of ensuring that our first guests received the highest level of service while introducing our new team members to a `going live environment.' We opened our new resort to the general public on May 20, 2005 and are now in the process of sizing our staffing levels to established productivity standards."

Gaming revenues were higher for both the year and fourth quarter, as compared to the prior year periods, due to an increase in slot and table game win. Average gross slot win per unit per day for the year and fourth quarter was $147 and $153 (compared to $140 and $134 for fiscal 2004 and the fourth quarter of 2004) and the average table game win per unit per day was $646 and $707 (compared to $580 and $550 for fiscal 2004 and the fourth quarter of 2004). For the period from March 15, 2005 through April 30, 2005, the slot win per unit per day in the new resort casino was $187 (based on 1,000 slots), while the table game win per unit per day was $886 (based on 41 tables).

Food and beverage revenues were $6.4 million in fiscal 2005 compared to $5.6 million in fiscal 2004. Fourth quarter food and beverage revenues were $2.2 million in 2005 compared to $1.6 million in 2004. The 2005 results represent a 14.3% and 37.5% increase in food and beverage revenues for the annual and quarterly periods ended April 30, 2005, as compared to the prior year periods. The food and beverage revenues for the fourth quarter were influenced by the opening of the fine dining, buffet, sports bar and other food and beverage outlets in the new resort as compared with the single buffet outlet in the old casino.

Rooms revenues of $1.2 million were recorded for the period from March 15 through April 30, 2005 with the opening of the new resort. Occupancy during this period was approximately 71% with an ADR of $113. These are the first room revenues since the closure and demolition of the old inn in the third quarter of fiscal 2003.

Retail, recreational and other revenues experienced a 39.3 % and 25.8% increase for the 2005 fiscal year and fourth quarter, when compared with the comparable prior year periods. Total revenue for 2005 from this category was $23.0 million, a $6.5 million increase over the prior year amount of $16.5 million, while total revenue from this category in the fourth quarter of 2005 was $7.8 million as compared to $6.2 million for 2004. When compared with the prior year, these additional revenues for 2005 were primarily attributable to increased revenues from lift ticket sales at Ski Apache related to increased snowfall over the prior year.