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River Rock Entertainment Results Up

29 March 2005

GEYSERVILLE, California --(PRESS RELEASE) -- The River Rock Entertainment Authority (the "Authority"), the operator of the River Rock Casino in Sonoma County, California, today announced fourth quarter operating results for the period ended December 31, 2004.

Operating highlights for the fourth quarter ended December 31, 2004 compared to the fourth quarter of 2003 are as follows:

-- Net revenues increased 24.9% to $28.5 million, from $22.8 million

-- Income from operations grew 42.3% to $6.8 million, compared to $4.8 million

-- EBITDA (1) was $8.6 million, a 35.2% increase compared to $6.4 million

Fourth Quarter Operating Results for the Period Ended December 31, 2004

Net revenues for the fourth quarter ended December 31, 2004 were $28.5 million. Casino revenues totaled $27.6 million in the fourth quarter and included slot revenue of $25.1 million and table game revenue of $2.5 million. Food, beverage, and retail revenues were $1.5 million. The retail value of food and beverages provided to customers without charge is included in gross revenues and then deducted as promotional allowances. The redemption of cash incentives earned by the player's club members is also recorded as promotional allowance. For the fourth quarter ended December 31, 2004, the promotional allowance was $0.7 million.

Operating expenses for the fourth quarter ended December 31, 2004 were $21.7 million. Operating expenses consisted of casino expense of $5.2 million, food, beverage and retail expense of $1.0 million, selling, general and administrative expense of $11.7 million, depreciation expense of $1.7 million, credit enhancement fees (2) of $1.3 million, gaming commission expense of $0.5 million and compact revenue sharing trust fund expense of $0.3 million.

EBITDA (1) for the fourth quarter 2004 was $8.6 million, or 30.3% of net revenues. Income from operations for the fourth quarter 2004 was $6.8 million and represented 23.9% of net revenues. Other expense, net, for the fourth quarter 2004 was $3.5 million and included $3.6 million of interest expense.

"Our fourth quarter was marked by solid results, and most importantly, by the completion of our expansion project. We believe our enhanced parking capacity will enable us to more optimally utilize our existing gaming operations as we enhance advertising and marketing to our large target market," said Douglas Searle, Chief Executive Officer.

Full Year Operating Results for the Period Ended December 31, 2004

Net revenues for the full year ended December 31, 2004 were $107.5 million. Casino revenues totaled $104.0 million and included slot revenue of $93.8 million and table games revenue of $10.2 million. Food, beverage and retail revenues were $5.4 million. The retail value of food and beverages provided to customers without charge is included in gross revenues and then deducted as promotional allowances. The redemption of cash incentives earned by the player's club members is also recorded as promotional allowance. For the full year ended December 31, 2004, the promotional allowance was $2.4 million.

Operating expenses for the full year ended December 31, 2004 were $78.1 million. Operating expenses consisted of casino expenses of $19.5 million, food beverage and retail expenses of $4.7 million, selling general and administrative expenses of $39.3 million, and depreciation of $6.4 million, credit enhancement fees (2) of $5.1 million, gaming commission expense of $1.8 million and compact revenue sharing trust expense of $1.3 million.

EBITDA(1) for the full year ended December 31, 2004 was $36.3 million and represented 33.7% of net revenues. Income from operations was $29.5 million and represented 27.4% of net revenues. Other expense, net for the fourth quarter of 2004 was $17.0 million and included $17.4 million of interest expense as well as $0.5 million in interest income.

Liquidity and Capital Resources

Net cash provided by operating activities for the fourth quarter totaled $9.4 million. Net cash used in capital and related financing activities for the fourth quarter totaled $13.5 million. Cash paid to purchase property and equipment for the fourth quarter was $18.4 million. Cash used in non-capital financing activities for the fourth quarter totaled $2.2 million, which was solely distributed to the Tribe. Cash and cash equivalents and restricted cash at December 31, 2004 totaled $18.6 million.

Current cash balances and operating cash flow are expected to provide us with sufficient resources to meet our existing debt obligations, currently planned capital expenditure requirements for the parking structures, infrastructure improvements, and distributions to the Tribe.

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