Wheeling Island Gaming Reports Results

3 April 2006

WHEELING, West Virginia – (PRESS RELEASE) -- Wheeling Island Gaming, Inc. announced today that the company's audited financial results for the fiscal year ended December 31, 2005 reflect operating revenues of $116.9 million, representing a decrease of $2.5 million, or a 2.1% decrease over the prior year.

Gaming revenues, which represent 82.4% of total revenues, were $96.4 million, a decrease of $4.0 million, or 4.0% from 2004. The decrease in gaming revenues was due primarily to the January 2005 flooding of the Ohio River which closed the gaming facility for three days and a portion of another day, increased competition from limited video lottery machines in the immediate market area and a legislative change enacted in July 2005 that lowered the company's share of net terminal income. The decrease in gaming revenue occurred despite the closure of the gaming facility for four days and portions of two other days as a result of the flooding of the Ohio River in September 2004.

The company's operating income for the year was $38.1 million, a decrease of $2.4 million over the prior year. The decrease in income from operations was primarily due to the $2.5 million decrease in revenues offset partially by a $0.1 million decrease in operating expenses resulting primarily from the recording of $1.9 million of business interruption insurance proceeds as an operating expense credit. Operating expenses for the year, excluding the business interruption insurance proceeds credit were $80.7 million, an increase of $1.8 million over the prior year. Such increase was due to higher food and beverage costs related to the newly refurbished buffet and higher marketing costs. Net income for the year was $16.9 million, representing an increase of $2.9 million over the prior year. The higher net income is primarily the result of $1.9 million of net casualty loss recoveries in 2005 as compared to a $4.3 million casualty loss in 2004 and a $0.4 million decrease in interest expense offset by the decrease in operating income of $2.4 million and $1.5 million of higher income taxes. The company defines EBITDA as net income before interest, taxes, depreciation and amortization. EDITDA is non-GAAP. The company believes that EBITDA can assist investors in analyzing and assessing its ability to service debt. In addition, management focuses on EBITDA, as defined, as a measure of the ability of the business to generate cash. This measure should not be considered in isolation or as an alternative to net income in measuring operating performance and as an alternative to cash flows in measuring the company's liquidity. EBITDA, as the company defines this term, may not be comparable to a similarly titled financial performance measure presented by other companies.

EBITDA was $51.3 million for 2005, representing an increase of $3.7 million, or 7.7% over 2004. The $3.7 million increase is primarily due to the receipt of net casualty loss recoveries of $1.9 million in 2005 as compared to $4.3 million of casualty losses in 2004 resulting from flood damages to Wheeling Island's gaming and racing facilities, offset partially by a $2.5 million decrease in operating revenues in 2005 as compared to the prior year.

As of December 31, 2005, Wheeling Island Gaming had $134.0 million of debt outstanding, comprised of $125 million of unsecured senior notes and $9 million of borrowings under its revolving credit facility.