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Trump's Loss Shrinks

THCR's EBITDA (defined as income from operations before depreciation, amortization, non-cash CRDA write-downs, non-recurring debt renegotiation costs and corporate expenses) for the year ended December 31, 2002 increased to $321.6 million, $51.4 million higher than the $270.3 million reported for the year ended December 31, 2001, or a 19.0% increase. Consolidated net revenues (defined as gross revenues less promotional allowances) for the year ended December 31, 2002 increased to $1,229.0 million from $1,176.3 million for the year ended December 31, 2001. Consolidated income from operations for the year ended December 31, 2002 was $207.4 million, compared to $179.5 million for the year ended December 31, 2001.

Consolidated net loss for the year ended December 31, 2002 was $12.0 million, or $0.54 per share net of minority interest of $6.9 million (including a $5.0 million charge for state income taxes), compared to a net loss of $25.3 million loss, or $1.15 per share net of minority interest of $14.6 million, for the year ended December 31, 2001. EBITDA for the quarter ended December 31, 2002 increased to $64.0 million, $1.2 million higher than the $62.8 million reported for the quarter ended December 31, 2001, or a 1.9% increase. Consolidated net revenues for the quarter ended December 31, 2002 increased to $283.1 million from $280.2 million for the quarter ended December 31, 2001.

Consolidated income from operations for the quarter ended December 31, 2002 was $28.0 million, compared to $39.8 million for the quarter ended December 31, 2001. The decrease in income from operations for the quarter is primarily attributable to an increase in non-cash CRDA write-downs of $9.6 million. The net loss for the 2002 fourth quarter was $17.3 million, or $0.78 per share net of minority interest of $10.0 million, (including a $1.3 million charge for state income taxes for the year ended due to a change in the State of New Jersey tax law during the third quarter of 2002), compared to a net loss of $10.2 million, or $0.46 per share net of minority interest of $5.9 million, in the fourth quarter of 2001.

Donald J. Trump, Chairman, President and Chief Executive Officer, commented, "What a great year this has been for the Company. The unceasing efforts of our employees have resulted in this record breaking year for the Company. Mark Brown and his team have demonstrated that they have a vision for the company and the discipline to have that vision fulfilled. To achieve these performance levels, we needed to provide our gaming patrons with a great gaming experience with the latest slots and attentive customer service in attractive and well maintained facilities. The results speak for themselves with year-to-year improvements in EBITDA of 10.3% at the Taj, 27.0% at the Plaza, 24.0% at the Marina and 26.2% in Indiana."

Trump Taj Mahal Associates was number one in gaming revenues in Atlantic City and reported net revenues of $515.9 million and an increase in EBITDA to $145.7 million for the year ended December 31, 2002, compared to net revenues of $500.9 million and EBITDA of $132.0 million for the year ended December 31, 2001. Income from operations for the year ended December 31, 2002 was $101.3 million, compared to $95.9 million for the year ended December 31, 2001. For the quarter ended December 31, 2002, net revenues were $117.5 million and EBITDA was $29.3 million, compared to $119.3 million and $30.3 million, respectively, for the quarter ended December 31, 2001. Income from operations for the quarter ended December 31, 2002 was $15.0 million, compared to $21.1 million for the quarter ended December 31, 2001. Mark A. Brown, the Company's Chief Operating Officer, commented, "The unfavorable weather in December, compared to last year's favorable winter weather conditions, and the position of the New Year's holiday on the calendar this year may have prevented the Taj from breaking its fourth quarter record of last year.

However, Taj still had the best full year EBITDA performance since it opened and remained number one in gaming revenue for Atlantic City. Our superior customer service, pristine facilities and great entertainment all helped us to achieve these record breaking yearly results. We continue to make improvements to the casino by adding new machines that are more appealing to our customers and technologically ready for the migration to a cashless environment. Also, by constantly paying close attention to our hotel product, we have maintained our star-diamond rating. In addition, our innovative marketing programs executed in a cost efficient manner continue to attract patrons."

Trump Plaza Associates reported an increase in net revenues to $316.2 million and an increase in EBITDA to $76.2 million for the year ended December 31, 2002, compared to net revenues of $301.6 million and EBITDA of $60.0 million for the year ended December 31, 2001. Income from operations for the year ended December 31, 2002 was $52.8 million, compared to $41.9 million for the year ended December 31, 2001. Trump Plaza Associates reported an increase in net revenues to $73.3 million and an increase in EBITDA to $13.4 million for the quarter ended December 31, 2002, compared to net revenues of $69.3 million and EBITDA of $12.9 million for the quarter ended December 31, 2001. Income from operations for the quarter ended December 31, 2002 was $5.1 million, compared to $8.0 million for the quarter ended December 31, 2001.

Mr. Brown said, "As I have commented repeatedly, 2002 will be Trump Plaza's year, and it was. Plaza's EBITDA of $76.2 million is the second highest EBITDA in the history of the property and the highest in 14 years. In fact, Plaza has exceeded its prior year comparable quarter EBITDA for each of the last eight consecutive quarters. Targeted marketing and dynamic events, coupled with superior customer service have allowed Trump Plaza to increase its EBITDA by 27% over the previous year. By continuing to focus on the profitability and efficiency of the casino floor and by replacing nearly 60% of the slot machines, the property has increased its net revenues by over $14 million for the year while reducing costs and expenses by nearly $2 million."

For the year ended December 31, 2002, Trump Marina reported net revenues of $270.2 million and an EBITDA of $64.5 million, compared to net revenues of $252.9 million and EBITDA of $52.1 million for the year ended December 31, 2001. Income from operations for the year ended December 31, 2002 was $34.6 million, compared to $30.6 million for the year ended December 31, 2001. Trump Marina reported net revenues of $61.7 million and an EBITDA of $12.0 million for the quarter ended December 31, 2002, compared to net revenues of $62.3 million and EBITDA of $13.3 million for the quarter ended December 31, 2001. Income from operations for the quarter ended December 31, 2002 was $2.5 million, compared to $7.6 million for the quarter ended December 31, 2001.

Mr. Brown commented, "Our full year results at the Trump Marina show that consistently adhering to a winning marketing theme, upgrading slot machines and superbly maintaining hotel facilities is a winning combination. The improved access to the marina district by way of the Atlantic City-Brigantine Connector Tunnel also helped bring new patrons to our Trump Marina resort."

For the year ended December 31, 2002, Trump Indiana reported net revenues of $124.0 million and an EBITDA of $33.1 million, compared to net revenues of $120.9 million and EBITDA of $26.2 million for the year ended December 31, 2001. Income from operations for the year ended December 31, 2002 was $20.4 million, compared to $14.5 million for the year ended December 31, 2001. Trump Indiana reported net revenues of $29.7 million and an EBITDA of $8.7 million for the fourth quarter ended December 31, 2002, compared to net revenues of $29.4 million and EBITDA of $6.4 million for the quarter ended December 31, 2001. Income from operations for the quarter ended December 31, 2002 was $4.3 million, compared to $3.9 million for the quarter ended December 31, 2001.

Mark Brown commented, "In 2002, the opening of the parking garage, the commencement of dockside gaming, the expansion of the gaming floor and the introduction of cashless slots, all combined to produce Trump Indiana's increased EBITDA, net revenues and income from operations. Effective marketing programs helped to manage the growth of revenue within a reasonable cost structure, resulting in higher margins."

Under its five-year management agreement with the Twenty-Nine Palms Band of Luiseno Mission Indians of California, THCR Management Services, LLC manages the day-to-day operations of the Tribe's recently renovated and expanded casino renamed Trump 29 Casino in the Palm Springs, California area. The new casino opened in April of 2002 and additional expansion of dining, entertainment and gaming space was completed in September of 2002. During the quarter and the year ended December 31, 2002, THCR Management Services earned $0.9 million and $2.7 million, respectively, in management fees (included in other revenues) and incurred $0.2 million and $0.5 million, respectively, in associated general and administrative costs and an additional $0.6 million in pre-opening costs (included in corporate expenses).

For the year ended December 31, 2002, Trump Atlantic City Associates reported an increase in net revenues to $832.1 million and an increase in EBITDA to $221.9 million, compared to net revenues of $802.5 million and EBITDA of $192.0 million for the year ended December 31, 2001. Income from operations for the year ended December 31, 2002 was $152.3 million, compared to $137.6 million for the year ended December 31, 2001. Trump Atlantic City Associates' combined net revenues of Trump Plaza and Trump Taj Mahal for the quarter ended December 31, 2002 increased to $190.8 million, compared to $188.6 million for the quarter ended December 31, 2001. EBITDA for the quarter ended December 31, 2002 was $42.6 million, compared to EBITDA of $43.1 million for the same period in 2001. Income from operations for the quarter ended December 31, 2002 was $20.1 million, compared to $29.1 million for the quarter ended December 31, 2001.

THCR, through its wholly-owned subsidiaries, owns and operates Trump Plaza Hotel and Casino, Trump Taj Mahal Casino Resort and Trump Marina Hotel Casino in Atlantic City, New Jersey, as well as Trump Indiana, a hotel and riverboat casino at Buffington Harbor, Indiana on Lake Michigan. Also, THCR, through a wholly-owned subsidiary, manages Trump 29 Casino located in the Palm Springs, California area. THCR and its subsidiaries are the exclusive vehicle through which Donald J. Trump engages in gaming activities.

THCR is a public company which is approximately 46.6% beneficially owned by Donald J. Trump. The Company is separate and distinct from all of Mr. Trump's real estate and other holdings.

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