Station Casino reports results

8 August 2007

Notable events include:

Second quarter EBITDA (1) of $144.0 million, an increase of 7% over the prior year's second quarter.

Net revenues from its Major Las Vegas Operations, excluding Green Valley Ranch, increased 7% from the prior year's second quarter.

Adjusted for non-recurring items and development expenses, diluted earnings per share ("EPS") of $0.41 compared to $0.61 in the prior year's second quarter, a decrease of 33%.

Results of Operations

The Company's net revenues for the second quarter ended June 30, 2007 were approximately $362.9 million, an increase of 6% compared to the prior year's second quarter. The Company reported EBITDA for the quarter of $144.0 million, an increase of 7% compared to the prior year's second quarter. This marks the twenty-second consecutive quarter of year-over-year growth of Adjusted EBITDA. For the second quarter, Adjusted Earnings (2) applicable to common stock were $23.3 million, or $0.41 per diluted share, compared to the prior year's $0.61 per diluted share on a comparable basis.

During the second quarter, the Company incurred $1.9 million in costs to develop new gaming opportunities, primarily related to Native American gaming, $6.1 million related to costs associated with the FCP transaction noted below, $1.0 million of preopening expenses, $1.7 million gain on asset sales, $3.8 million in management agreement/lease termination costs and $0.1 million of other non-recurring credits. Including these items, the Company reported net income of $15.1 million and diluted earnings applicable to common stock of $0.27 per share.

The Company's earnings from its Green Valley Ranch joint venture for the second quarter were $11.0 million, which represents a combination of the Company's management fee plus 50% of Green Valley Ranch's operating income. For the quarter, Green Valley Ranch generated EBITDA before management fees of $28.3 million, a 7% increase compared to the prior year's second quarter.

Las Vegas Market Results

For the second quarter, net revenues from the Major Las Vegas Operations, excluding Green Valley Ranch, increased to $327.1 million, a 7% increase compared to the prior year's quarter, while EBITDA from those operations increased 4% to $118.5 million.

EBITDA and Adjusted Earnings are not generally accepted accounting principles ("GAAP") measurements and are presented solely as a supplemental disclosure because the Company believes that they are widely used measures of operating performance in the gaming industry and as a principal basis for valuation of gaming companies. EBITDA and Adjusted Earnings are further defined in footnotes 1 and 2, respectively.

Balance Sheet Items and Capital Expenditures

Long-term debt was $3.44 billion as of June 30, 2007. Total capital expenditures were $74.7 million for the second quarter. Expansion and project capital expenditures included $6.1 million for Phase III of Red Rock, $6.8 million for the expansion of Fiesta Henderson, $18.4 million for the corporate office building and $10.2 million for the purchase of land. As of June 30, 2007, the Company's debt to cash flow ratio, as defined in its bank credit facility, was 5.7 to 1.

Proposed Merger

On February 23, 2007, the Company entered into a definitive merger agreement with Fertitta Colony Partners LLC ("FCP"), pursuant to which FCP agreed to acquire all of Station's outstanding common stock for $90 per share in cash. FCP is a new company formed by Frank J. Fertitta III, Chairman and Chief Executive Officer of Station, Lorenzo J. Fertitta, Vice Chairman and President of Station and Colony Capital Acquisitions, LLC, an affiliate of Colony Capital, LLC. On July 9, 2007, Station filed a definitive proxy statement and related materials with the Securities and Exchange Commission that provides details about the pending sale of the Company. Station will hold a special meeting of its stockholders on Monday, August 13, 2007, at 2:00 p.m. local time, at Red Rock Casino Resort Spa, 11011 West Charleston Boulevard, Las Vegas, Nevada, at which holders of record at the close of business on June 14, 2007 of Station's common stock will be asked to consider and vote upon a proposal to approve the merger agreement with FCP.