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Venture Catalyst Incorporated Reports Results for Q3 2001

This represents a 98% decrease as compared to $3,494,000 in the third quarter ended March 31, 2000. The decrease resulted from an absence of fees from the Barona Casino and a decrease of 93% in revenues from other clients compared to the year earlier period.

The cost of revenues increased 54% to $1,742,000 compared to the prior year's quarter. General operating and administrative expenses declined to $1,377,000, a decrease of 29% over the third quarter of last year.

VCAT reported a net loss for the quarter of $2,282,000, or $(0.31) per share. This compares with a net loss of $594,000, or $(0.11) per share, for the third quarter in the prior year.

Weighted average shares outstanding were 7,296,540 for the period compared to 5,464,690 for the prior year period.

Revenues for the nine months ended March 31, 2001 totaled $8,640,000. This represents a 7% decrease as compared to $9,252,000 for the same period last year. The decrease resulted from a 31% decrease in revenues from other clients to $1,771,000 partially offset by higher revenues for services to the Barona Casino of 3% to $6,869,000 compared to the year earlier period.

Cost of revenues increased 50% to $5,867,000 compared to the prior year. General operating and administrative costs increased by 10% over the prior year period to $5,889,000.

VCAT reported a net loss for the nine month period of $12,859,000, or $(1.75) per share. This compares with a net loss of $1,492,000, or $(0.30) per share, for the nine month period in the prior year.

Weighted average shares outstanding were 7,366,057 for the nine months compared to 4,995,549 for the prior year period.

Revenues were adversely affected during the quarter as compared to the previous three quarters due to significantly higher operating and financing expenses at the Barona Casino, as previously announced, resulting in no fees to VCAT. Revenues were also lower due to the Company's previously announced restructuring plan to focus on gaming clients and transitioning non-gaming clients. Additionally, results for the third quarter were negatively effected by increased expenses related to our services to the Barona Casino and non-recurring charges, including the write down of tenant improvements and additional severance obligations. VCAT also recorded a net write down of $253,000 of its portfolio assets.

In addition, during the nine months ended March 31, 2001, VCAT recorded significant one-time expenses relating to its previously announced restructuring of $6,999,000 as VCAT refocuses on gaming clients and $2,355,000 to fully reduce the carrying value of certain of its portfolio assets.

As of April 30, 2001, VCAT had $5,274,000 of unrestricted cash and cash equivalents. ``The Barona Casino, our primary client, continues to be in a development and expansion period,'' said Don Speer, Chairman and Chief Executive Officer. ``The activity levels at the Barona Casino continue to be strong both in customer attraction and facility improvement. Their investment in the future has an effect on our fees in the short term with the belief of increased performance in the long term. This is the period of largest development in the California gaming market, where investment is critical for any future success. We are focused on continuing to consult with the Barona Tribe in their efforts to expand the Barona Casino's outstanding success in California.''

``We also remain committed to building the best gaming consulting company possible,'' concluded Mr. Speer. ``We see opportunities ahead and are working to analyze and will pursue these opportunities where we see potential long term benefit for our clients and shareholders. It continues to be difficult to predict timing or potential outcomes and, as a result, we expect our revenues for the balance of the calendar year to be below historical levels.''

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