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BALLY MANUFACTURING CORPORATION 1993 FIRST QUARTER RESULTS FROM CONTINUING OPERATIONS UP 45 PERCENT OVER PREVIOUS YEAR COMPANY POSTS 7TH CONSECUTIVE QUARTERLY IMPROVEMENT

 CHICAGO, May 3 /PRNewswire/ -- Arthur M. Goldberg, Chairman, Chief Executive Officer and President of Bally Manufacturing Corporation (NYSE: BLY) announced today that results from operations for the first quarter of 1993, "reflected a 45 percent improvement in income from continuing operations compared to the same period in 1992 and was the seventh consecutive quarter of improved results from continuing operations."
 For the first quarter of 1993, income from continuing operations improved to $3,837,000 ($.07 per share) compared to $2,644,000 ($.05 per share) for the same period in 1992. Before income taxes, continuing operations earned $7,737,000 during the quarter compared to $4,353,000 in 1992, a 78 percent improvement. Results for the 1992 period included gains of approximately $4 million from the repurchase of debt for sinking fund requirements, while such gains were only $.3 million in the 1993 period.
 The Company recorded extraordinary charges in the 1993 period totalling $8.1 million related to early redemptions of debt in connection with refinancing of two of its operating subsidiaries. Additionally, during the first quarter of 1993, the Company adopted the newly required standard of accounting for income taxes (Statement of Financial Accounting Standards No. 109) which resulted in a one-time cumulative non-cash charge of $28.2 million. The 1992 period included income from discontinued operations of $1.2 million and extraordinary gains related to the repurchase of debt of $.6 million. Including all of the aforementioned, the net loss for 1993 was $32,450,000 ($.72 per share) compared to net income of $4,500,000 ($.10 per share) in 1992.
 Mr. Goldberg commented, "Our first quarter results clearly reflect the success of the plan we began two years ago as both our Atlantic City casino hotels and fitness center subsidiaries contributed operating profits during the quarter. We were particularly gratified to see the quality of the 1993 operating earnings of $.07 per share compared to the 1992 period when gains on repurchases of debt added almost $4 million in earnings ($.07 per share) just to reach $.05 per share.
 Mr. Goldberg added, "Bally's Park Place had an outstanding quarter posting revenue gains of almost 4 percent. Bally's Grand -- Atlantic City, was able to post revenue gains of 10 percent. These increases occurred despite severe winter weather that hampered attendance on three weekends. These results are a signal that the Atlantic City market is recovering and our properties are positioned to capitalize on this upswing.
 "Although Bally's Health & Tennis' revenues lagged last year's levels by 4 percent, principally as a result of the new sales programs we announced and implemented in the fourth quarter of 1992, these programs appear to be succeeding faster than we expected, significantly improving the collectability quality of new membership contracts sold. We will continue to focus on cash flow and expect this emphasis will result in improved earnings for 1993," said Mr. Goldberg.
 "We have worked hard as a team to bring Bally back to profitability and are enthusiastic over new opportunities we are pursuing that we believe will drive earnings and shareholder values higher.
 "Bally's recently announced gaming projects in Mississippi are just the beginning," continued Mr. Goldberg. "We are also actively pursuing opportunities in a number of other potential gaming jurisdictions. In our fitness center operations, new prime club locations and complimentary businesses are in our future plans. These are dynamic times at Bally and we all look forward to continuing to build an even better company for our shareholders and employees."
 Bally Manufacturing Corporation is one of the world's foremost operators of casino hotel resorts and fitness centers.
 BALLY MANUFACTURING CORPORATION
 Consolidated Operating Summary
 (Unaudited)
 Periods ended March 31 Three Months
 1993 1992
 Revenues $334,963,000 $331,774,000
 Income from continuing operations
 before income taxes 7,737,000 4,353,000
 Income from continuing operations 3,837,000 2,644,000
 Income from discontinued operations -- 1,244,000
 Extraordinary gain (loss) on
 extinguishment of debt (8,090,000) 612,000
 Cumulative effect on prior years
 of change in accounting for income
 taxes (28,197,000) --
 Net income (loss) (32,450,000) 4,500,000
 Preferred stock dividend requirement 694,000 694,000
 Net income (loss) applicable
 to common stock (33,144,000) 3,806,000
 Per common share:
 Income from continuing operations $.07 $.05
 Income from discontinued operations -- .03
 Extraordinary gain (loss) on
 extinguishment of debt (.18) .02
 Cumulative effect on prior years of
 change in accounting for income taxes (.61) --
 Net income (loss) (.72) .10
 Average common shares outstanding 46,123,457 37,032,105
 NOTES: (a) The financial results for the three months ended March 31, 1992 have been restated to reflect the equity in earnings of Bally Gaming International, Inc. (:Gaming") as a discontinued operation because of the company's intention to dispose of its remaining investment in Gaming. Effective Jan. 1, 1993, the company accounts for its 17 percent ownership interest in the common stock of Gaming on the cost method because certain executive officers and directors of Gaming ceased being executive officers of the company causing the company to no longer hold significant control over Gaming.
 (b) The extraordinary loss on extinguishment of debt for the three months ended March 31, 1993 is attributed to the early redemption of the Bally's Health & Tennis Corporation 13 5/8 percent senior subordinated debentures and the Bally's Grand-Atlantic City 13 1/4 percent mortgage- backed notes through refinancings in January 1993 and March 1993, respectively. The extraordinary gain on extinguishment of debt for the three months ended March 31, 1992 is a result -- Atlantic City 13 1/4 percent mortgage-backed notes through refinancings in January 1993 and March 1993, respectively. The extraordinary gain on extinguishment of debt for the three months ended March 31, 1992 is a result of market purchases of various issues of the company's public debt. In addition, revenues for the three months ended <March 31, 1993 and 1992 include gains of $.3 million and $3.9 million, respectively, on market purchases of various issues of the company's public debt for sinking fund requirements.
 (c) Effective Jan. 1 1993, the company changed its method of accounting for income taxes as required by Statement of Financial Accounting Standards ("SFAS") No. 109, "Accounting for Income Taxes." As permitted by SFAS No. 109, the company has elected to use the cumulative effect approach rather than to restate the financial results of any prior periods to apply the provisions of SFAS No. 109.
 (d) The company's operations are subject to seasonal fluctuations.
 -0- 5/3/93
 /CONTACT: Laurie N. Terry or Michael Levine of MWW/Strategic Communications, 201-342-9500, for Bally/
 (BLY)


CO: Bally Manufacturing Corporation ST: Illinois IN: CNO SU: ERN

KD-TM -- NY017 -- 3584 05/03/93 09:00 EDT
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Date:May 3, 1993
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