Butler National Corp. makes announcement.

OLATHE, Kan.--(BUSINESS WIRE)--Sept. 15, 1995--Butler National Corp. (NASDAQ:BUKS) reported that a Class III Indian Gaming Compact for a joint venture by the Miami and Modoc Tribes, both of Oklahoma, has been approved by the State of Oklahoma and is progressing toward final approval.

The agreement provides for Class III (Off-Track Betting "OTB") along with Class II (high stakes bingo) at a site within the City of Miami, Okla.

A compact between the State of Oklahoma and the two tribes allowing Class III Gaming in Oklahoma by these tribes, was approved by the Joint Committee on State-Tribal Relations of the Oklahoma Legislature after being signed by Gov. Frank Keating. The compact permits the tribes to conduct OTB operations on Modoc Tribal lands adjacent to Tribal headquarters in Miami, Okla.

This compact is one of two such compacts approved in the State of Oklahoma as permitted by the Federal Indian Gaming Regulatory Act of 1988 (IGRA). The compact has been submitted to the U.S. Department of Interior for review and approval.

Butler National Corp. will consult with the development and plans to manage the joint venture for the tribes. The proposed facility is planned to be approximately 18,000 square feet and will be located directly south of the Modoc Tribal Headquarters building in Miami.

The complex will contain off-track betting windows, a bingo hall, and a restaurant. Butler's proposed management agreement was filed in September 1994, with the National Indian Gaming Commission and provides for a five-year agreement with a two-year option. The manager is to receive a 30% share of the profits. Tribal leaders have pledged 2% of their gaming proceeds to the State of Oklahoma and 2% to Ottawa County, Okla.

The property is located about one mile west of Interstate 44, one of the most heavily travelled highways between the Midwest and the western United States. Butler National and the Miami and Modoc Tribes expect that this facility will draw from area tourists and from travelers along I-44. Major cities within an easy drive of the property include Branson, Joplin, Carthage, and Springfield, Mo.; Fort Scott, Pittsburg, Baxter Springs, and Coffeyville, Kan.; Tulsa, Miami, Bartlesville, Okla.; and the populated retirement communities in Northwest Arkansas.

Management Comments:

"We are pleased to be a part of this joint venture between these two leading Indian tribes and are excited about constructing, and assisting with the management of Oklahoma's first Class III gaming facility. We expect the compact to be approved within the next two months and then to have all of the necessary approvals to have the facility operational in the Spring of 1996. We expect this facility to make a significant contribution to Butler National's revenues and earnings," commented Clark D. Stewart, president of the company.

Our Business:

Butler National Corp. operates in the aerospace and services business segments. The Services segment includes food distribution, electronic monitoring of water pumping stations, temporary employee services, and administrative management services.

Aerospace includes the manufacture of airborne electronic switching equipment for McDonnell Douglas and structural modification of business aircraft.

For more information, or for a complete copy of Butler National's latest 10-Q, contact the individual listed below.

CONTACT: Butler National Corp., Olathe

Edward J. Matukewicz, 913/780-9595

913/780-5088 (fax)

KEYWORD; KANSAS

INDUSTRY KEYWORD: ENMED ENVIRONMENT AEROSPACE REPEATS: New York 212-575-8822 or 800-221-2462; Boston 617-330-5311 or