Isle of Capri Casinos Lowers Q4 Estimate

28 April 2004

BILOXI, Mississippi – (Press Release) --Isle of Capri Casinos, Inc. (Nasdaq: ISLE) today lowered its estimate of fourth quarter (ended April 25, 2004) earnings to a range of $0.34 to $0.38 per diluted share (before pre-opening costs and the previously disclosed charge related to the March refinancing of its $390.0 million 8 3/4% Senior Subordinated Notes). The company's previous comparable estimate of fourth quarter earnings was $0.52 to $0.58 per diluted share.

The company attributed the change in estimate principally to the effects of its expansion and development activities. The specific factors that caused the change were a less than anticipated immediate positive impact from the new hotel at the Isle-Bossier City and the casino at the Isle-Our Lucaya in the Bahamas; greater than expected construction disruption at its properties in Black Hawk, CO; lower than expected volumes at the Blue Chip-Castle Hill Casino in Dudley, England; greater than expected costs for corporate new development; and greater than expected interest expense related to untendered 8 3/4% Senior Subordinated Notes (which were eventually tendered in full in connection with the company's refinancing).

The company's fourth quarter EBITDA(1) (adjusted to exclude the effects of pre-opening costs and the refinancing charge) is expected to be in the range of $64.5 million to $66.0 million, compared to the company's previous comparable estimate of $72.0 million to $76.0 million. The company expects to report record adjusted EBITDA for the fiscal year ended April 25, 2004 of approximately $249.0 million to $251.0 million. Further, the company expects to maintain its strong restricted group credit statistics of total debt/adjusted EBITDA in the low 4's and adjusted EBITDA/cash interest in the high 2's.

After taking into account the charge of $17.0 million, net of income taxes, or $0.57 per diluted share, related to the refinancing of its $390.0 million 8 3/4% Senior Subordinated Notes and after excluding the dilutive effect of stock options in the fourth quarter, the company anticipates that it will report a net loss per share for the fourth quarter ended April 25, 2004 of approximately $0.14 to $0.21 and report net income for the fiscal year ended April 25, 2004 of approximately $25.0 million to $27.0 million, or $0.82 to $0.90 per diluted share. Without taking into account the refinancing charge and related income taxes, the company expects to report net income for the fiscal year ended April 25, 2004 of approximately $42.0 million to $44.0 million, or $1.37 to $1.46 per diluted share.

The company will release its fourth quarter and fiscal year end results and will host an investor conference call in mid-June, details to be announced at a later date.

Isle of Capri Casinos, Inc., a leading developer and owner of gaming and entertainment facilities, operates 16 casinos in 14 locations. The company owns and operates riverboat and dockside casinos in Biloxi, Vicksburg, Lula and Natchez, Mississippi; Bossier City and Lake Charles (2 riverboats), Louisiana; Bettendorf, Davenport and Marquette, Iowa; and Kansas City and Boonville, Missouri. The company also owns a 57 percent interest in and operates land-based casinos in Black Hawk (two casinos) and Cripple Creek, Colorado. Isle of Capri's international gaming interests include a casino that it operates in Freeport, Grand Bahamas, and a two-thirds ownership interest in casinos in Dudley and Wolverhampton, England. The company also owns and operates Pompano Park Harness Racing Track in Pompano Beach, Florida.