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Resorts Results Up

ATLANTIC CITY, New Jersey -- (PRESS RELEASE) -- Resorts International Hotel and Casino, Inc. ("Resorts"), which owns and operates Resorts Atlantic City, a casino/hotel in Atlantic City, NJ, today, reported its operating results for the fourth quarter and year ended December 31, 2004.

Fourth Quarter 2004 Results

Earnings before interest, taxes, depreciation, and amortization ("EBITDA") for the fourth quarter were $2.6 million as compared to $1.7 million in the year earlier quarter. The increase in EBITDA was primarily a result of the June 2004 opening of Resorts' new 399-room Rendezvous Tower, Grand Lobby and related gaming space (collectively, the "new tower"), which resulted in a $6.6 million increase in net revenues for the quarter. This increase was offset by the impact of the month-long hotel and restaurant workers' union strike in Atlantic City during the 4th quarter. Net loss for the quarter was $4.0 million compared to $4.3 million in the fourth quarter of 2003.

Gaming revenues for the quarter were $54.8 million, compared to $46.9 million for the comparable 2003 quarter. Net revenues for the quarter were $50.6 million, compared to $44.0 million in the prior year. Gaming volumes for the fourth quarter were up 17.9% and 12.3% for table drop and slot handle, respectively, as a result of the factors described above.

Gross rooms revenue for the fourth quarter increased $1.8 million over 2003, as a result of 15,000 additional occupied room nights due to the new tower, and an increase in the average room rate during the quarter.

Total Year 2004 Results

EBITDA for the twelve months ended December 31, 2004 was $30.2 million as compared to $28.6 million for 2003. Net loss for the period was $4.8 million compared to net loss of $1.3 million in 2003, resulting from increased depreciation expense and pre-opening expenses of $2.7 million, both related to the opening of the new tower in June of 2004.

Gaming revenues for the twelve months ended December 31, 2004 were $247.8 million compared to $230.1 million in 2003. Net revenues for 2004 were $230.9 million compared to $215.4 million in 2003. The year over year increase was the result of the opening of the Rendezvous Tower and the related casino expansion in the third quarter. Gaming volumes for the twelve months ended December 31, 2004 were up 7.6% and 5.6% for table drop and slot handle, respectively, primarily as a result of the new tower.

"We are pleased with the results during the fourth quarter, although they were adversely impacted by the union labor strike," said Nick Ribis, Vice Chairman of Resorts. "Our gaming revenue increases year over year outpaced the industry average, and in the coming year we are planning to add new attractions to the property to continue to grow our customer base and improve our earnings."

Capital Expenditures

During 2004, the Company invested $72.9 million of capital, including $7.8 million for maintenance capital expenditures and $65.1 million for the hotel expansion (including $4.1 million of capitalized interest).

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