Butler National Corporation Announces Opening of the STABLES, an Indian Gaming Facility, in Oklahoma.

OLATHE, Kan.--(BUSINESS WIRE)--Sept. 22, 1998--

Company Expects its Management Contract to Make a Significant

Contribution to Earnings Over the Next Five Years

Butler National Corporation (NASDAQ:BUKS) announced that the "Stables," a Class III gaming establishment in Miami, Oklahoma, owned by the Miami Tribe and the Modoc Tribe, opened for business at 11 a.m. on Monday, September 21, 1998.

The Stables is located within the city of Miami, Oklahoma, a few minutes west of Interstate Route 44, formally know as the famous U.S. Route 66, one of the busiest stretches of highway in the United States.

The Stables, features all Class II games permitted under the Indian Gaming Regulatory Act, including high stakes bingo and pull tabs, but is unique in that it has an approved Class III gaming compact with the State of Oklahoma to offer Off-Track-Betting on horse racing ("OTB"). Both the OTB facility and the bingo operation are featuring state-of-the-art electronics and games.

On Friday, September 18th, an open house was held at the Stables for the members and guests of the two Indian Tribes. Approximately 500 people attended this event. On September 19th, an open house was held for the local business community, contractors and suppliers. Attendance was approximately 700 people.

The 24,000 square foot building includes the Stables Bingo hall, comfortably seating 500 players, the Clubhouse, a fine dining restaurant, the OTB area known as Trackside and an adjacent bar and lounge. The Stables employs 130 people with an annual payroll in excess of $1.5 Million. The employment and related operating expenditures should provide approximately $10 Million in economic activity to the Miami economy each year.

Total cost of the facility is $4.5 Million. Butler National Service Corporation ("BNSC"), a wholly owned subsidiary of Butler National Corporation, provided $3.5 Million through its five year, NIGC approved, management contract. Of the $3.5 Million, $1.85 Million was provided to BNSC by Miller & Schroeder Investments Corporation, of Minneapolis. Miller & Schroeder has financed approximately $1.0 Billion to a number of Indian Gaming facilities throughout the United States. Approximately $1.0 Million was provided through leases of the gaming equipment. Considering normal economic multipliers, the project added approximately $28 Million to the local economy.

As manager, BNSC will receive 30% of the profits plus reimbursement of the funds advanced by BNSC to the two tribes for construction of the Stables. The reimbursement plan was defined as a part of the Management Contract and approved by the NIGC.

Although the OTB and the more than one hundred electronic bingo machines are currently operational, the opening will be complete with the first bingo session scheduled for Friday, September 25th. The grand opening festivities for the Stables will take place on Friday through Sunday, October 1-3, with a grand prize of a new Chevrolet Cavalier being awarded on Sunday, October 3rd.

Mr. Fred Warner is the General Manager. Mr. Warner is being assisted by Mr. Don Wilson, a nationally recognized bingo gaming consultant and Mr. Mark Whiteley, Assistant General Manager. Mr. Whiteley brings Las Vegas gaming machine experience to the Stables. These three men collectively bring more than 75 years experience in the Class II and Class III gaming with specific expertise in managing high stakes bingo operations.

Management Comments:

"I am pleased to announce the opening of the Stables. Our Management Contract for the Stables was first filed with the NIGC in 1994. With the opening of the Stables, the project has made a significant capital investment in the community and provided many new job opportunities in the City of Miami and the surrounding communities. We believe that the quality of this facility will indeed attract the public. We expect the Stables to draw many of its customers from the local communities in Arkansas, Kansas, Missouri and Oklahoma and the many tourists attending the Branson, Missouri attractions.

"We opened with minimum advertising by posting an Open for Business message on our sign stating that the Stables would open on Monday, September 21, 1998, at 11 a.m. Since that time, we have had a steady flow of customers even during significant rain storms in the Miami area. Based on the initial interest and activity, the Trackside OTB and the Clubhouse restaurant, should both exceed our original expectations. Also, we expect the Stables Bingo to be full for nearly every session.

"If all of our expectations are met, I expect that the Butler National shareholders will be pleased that this project, which was five years in the making, has finally opened and should translate into earnings possibly as early as the current quarter.

"I am proud and pleased with the accomplishments by all of the partners in the Stables project. Chief Follis of the Modoc Tribe had the foresight to acquire trust land with great access and Chief Leonard of the Miami Tribe took the initiative to obtain one of the first OTB Compacts with the State of Oklahoma. The governing bodies of both Tribes provided guidance and leadership during the entire project development and construction. This is a great addition to Northeast Oklahoma," commented Clark D. Stewart, President.

Forward-Looking Information:

The information set forth above may include "forward-looking" information as outlined in the Private Securities Litigation Reform Act of 1995. The Cautionary Statements, filed by the Company as Exhibit 99 to the Company's Annual Report on Form 10-K, are incorporated herein by reference and investors are specifically referred to such Cautionary Statements for a discussion of factors which could affect the Company's operations and forward-looking statements contained herein.

Our Business:

Butler National Corporation operates in the Aerospace and Services business segments. The Services segment includes electronic monitoring of water pumping stations, temporary employee services and management services for Indian gaming enterprises. Aerospace includes the manufacture of switching equipment for Boeing and structural modification of business aircraft.