Circus Circus Enterprises Inc. Monday announced record operating results for the third quarter ended Oct. 31, 1994.

LAS VEGAS--(BUSINESS WIRE)--Nov. 21, 1994--Fueled by the opening of Circus Circus-Tunica on Aug. 29, 1994 and the continued success of Luxor, Circus' Egyptian-themed resort which opened in October 1993, the company once again produced record operating results.

During the third quarter, revenues increased 24%, operating cash flow before preopening expenses increased 30% and operating income before preopening expenses increased 27%, compared to the prior year third quarter.

Circus Circus reported net income for the third quarter of $36,596,000, or 43 cents per share, compared with $20,522,000, or 24 cents per share last year. Current year results include approximately $3.0 million of preopening expenses related to the opening of Circus Circus-Tunica. Prior year results include $16.5 million of preopening expenses related to Luxor and Grand Slam Canyon and $3.4 million of additional taxes due to a one-time catch-up adjustment to reflect the increased corporate tax rate mandated by the Revenue Reconciliation Act of 1993. Excluding these non-recurring items, Circus' earnings per share were 45 cents for the third quarter versus 40 cents for the comparable period of the prior year.

Record crowds flocked to the Aug. 29 opening in Tunica County, Miss. of the company's first riverboat project, and operating results remained strong throughout the balance of the quarter. Circus Circus-Tunica generated $7.5 million in operating cash flow before preopening expenses during the approximate two months it was open in third quarter.

In its first full year of operations, Luxor posted operating cash flow of $92 million on revenues of $288 million, a cash flow margin of 32%. Based on its cost of approximately $400 million, this represents the highest return on investment of the three mega-resorts which opened on the Las Vegas Strip in late 1993.

Interest expense increased $6.7 million for the quarter due to a combination of lower capitalized interest and higher borrowings. Capitalized interest decreased $5.8 million for the three months ended Oct. 31, 1994, compared to the same period last year when Luxor and Grand Slam Canyon were under construction for a portion of the period.

At Circus Circus-Las Vegas, revenues and operating cash flow were essentially equal with the prior year third quarter. Excalibur also continued to hold its own in the very competitive Strip market, with revenue and operating cash flow comparable to the prior year third quarter. Despite the increased competition on the Strip, Circus Circus-Las Vegas maintained a solid 29% cash flow margin while Excalibur generated an impressive 32% cash flow margin.

Results at Circus Circus-Reno also held even with the prior year third quarter, as the area awaits the opening of neighboring Project "C" (a joint venture between Circus and Eldorado Hotel/Casino) in the summer of 1995. The operating cash flow margin in the third quarter in Reno was a strong 33%.

Increased competition within the Laughlin market and from the new themed resorts in Las Vegas continues to dampen results at both the Colorado Belle and the Edgewater. The combined operating cash flow margin was nonetheless a strong 27%.

Results in Windsor, Canada, the company's one-third interest in the temporary casino, continue to exceed expectations and contributed approximately $1.5 million in operating income for the third quarter.

Looking forward, Project "C," a joint venture with Eldorado Hotel/Casino in Reno, Nev., will open in the summer of 1995 and will feature an 1890's silver-mining-town theme. Also in 1995, the company anticipates opening a riverboat casino in Chalmette, La., in a joint venture with American Entertainment Corporation.

Circus Circus Enterprises Inc. operates eight properties in Nevada: Luxor, Excalibur, the Circus resorts in Las Vegas and Reno, the Colorado Belle and Edgewater in Laughlin, and Slots-A-Fun and Silver City in Las Vegas. The company also operates Circus Circus-Tunica, a riverboat casino in Tunica County, Miss. and has a one-third interest in Windsor Casino Limited, which operates a temporary casino in Windsor, Canada pending completion of a permanent facility in 1997. -0-

            CIRCUS CIRCUS ENTERPRISES INC. AND SUBSIDIARIES
             Condensed, Consolidated Statements of Income
               (Dollars in thousands, except share data)
                              (Unaudited)

                           Three Months Ended       Nine Months Ended
                              October 31,             October 31,
                           1994         1993      1994           1993

Revenues                 $306,613    $246,427    $891,409    $688,359
Costs and expenses        230,006     184,786     674,233     510,291
Operating profit before
  corporate & preopening
  expenses                 76,607      61,641     217,176     178,068
Corporate expense           5,381       5,399      16,695      11,767
Preopening expense          3,012      16,506       3,012      16,506
Income from operations     68,214      39,736     197,469     149,795
Interest expense          (11,980)    (11,039)    (34,138)    (25,809)
Capitalized interest        1,452       7,253       2,945      18,456
Net interest expense      (10,528)     (3,786)    (31,193)     (7,353)
Other income (expense)         28        (632)       (572)       (849)
Income before income tax   57,714      35,318     165,704     141,593
Income tax                 21,118      14,796      60,269      50,929
Net Income                 36,596      20,522     105,435      90,664
Earnings per share       43 cents    24 cents       $1.23       $1.04
Average shares
  outstanding          85,705,133  87,319,627  85,827,063  87,310,552

CONTACT: Circus Circus Enterprises Inc., Las Vegas

Dan Copp, 702/734-0410, ext. 3975