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GRAND CASINOS CONTINUES PROFITABLE OPERATIONS FOR THIRD QUARTER, NINE MONTHS; RAPID ACCEPTANCE OF MANAGEMENT FIRM LEADS TO NEW CASINO VENTURES

GRAND CASINOS CONTINUES PROFITABLE OPERATIONS FOR THIRD QUARTER, NINE MONTHS; RAPID ACCEPTANCE OF MANAGEMENT FIRM LEADS TO NEW CASINO VENTURES
 MINNEAPOLIS, June 10 /PRNewswire/ -- Grand Casinos Inc. (NASDAQ-NMS: GRND), which manages two Las Vegas-style casinos on behalf of the Mille Lacs Band of Ojibwe Indians, reported its third consecutive quarter of profitability today as a result of strong patronage at Grand Casinos Mille Lacs, located north of Minneapolis.
 The second casino managed by the firm, Grand Casino Hinckley, opened after the April 26 close of the third quarter, so its results are not reflected in the third quarter.
 Net income for the third quarter was $305,028, or 3 cents per share, on revenues of $1.4 million. Grand Casinos derives its revenues from a 40 percent distribution of casino earnings. Because Grand Casino Mille Lacs did not open until mid-April 1991, last year's third-quarter pro forma earnings of $23,992 on revenues of $71,104 are not comparable to current-year results.
 For the nine months, revenues of $3.9 million resulted in pro forma net earnings of $1.5 million, or 15 cents per share, on pro forma weighted average shares outstanding of 10,055,410. Prior-year results are not comparable.
 "While we are gratified by the strong public response to Grand Casino Mille Lacs, and our continuing profitability, our financial performance is only one of several major achievements for Grand Casinos, Inc. during the past few months," said Lyle Berman, chairman and chief executive officer.
 Based largely on its initial success in Minnesota, Grand Casinos has obtained management contracts covering three additional Indian casinos. As previously reported, Grand Casinos has entered into agreements to develop and manage reservation casinos on behalf of the Lac Courte Oreilles Band of Lake Superior Ojibwa Indians near Hayward, Wisconsin; the Coushatta Tribe of Louisiana; and the Tunica-Biloxi Tribe of Louisiana--giving the company a total of five management opportunities in Indian Gaming. In addition, the company recently purchased the rights to own, develop and operate a dockside casino in Gulfport, Miss.
 "Dockside casino gaming has some of the same characteristics as Indian gaming, such as limited number of available sites, barriers to entry and extensive governmental regulation," Berman noted. "And we believe we can transfer our experience in Indian gaming to this growing segment of the gaming industry.
 These agreements, along with the two casinos that we currently operate, bring us much closer to our goal of operating six-to-eight casinos during the coming two-to-three years."
 Berman said the firm's success in obtaining new projects and management contracts has surpassed initial expectations, leading to a rapid expansion of both management staff and related development expenses. The company has moved aggressively to capitalize on its new opportunity in Mississippi, and proposals to additional Indian Tribes continue.
 "These new opportunities strengthen our long-term potential, although near-term investment in staff, architects, travel and other development expenses will need to be incurred in the short term," Berman said. "We anticipate continued success in the fourth quarter, particularly in light of the opening of Grand Casino Hinckley in May, but we will absorb some high administrative costs from the development expense of our newer project opportunities."
 During the third fiscal quarter, the 60,000-square-foot Grand Casinos Mille Lacs drew almost 480,000 visitors, bringing the total number of visitors to more than 1.6 million since the casino opened in April 1991. Grand Casino Hinckley, which opened on May 15, attracted more than 48,000 visitors in its first week of operation.
 Berman also indicated the current expansion of Grand Casino Mille Lacs, originally scheduled to be completed and open in early July, has been delayed up to three weeks due to the unexpectedly late delivery of an additional 600 new video machines.
 Berman stated, "The delay somewhat lowers our expectations for the fourth quarter because the capacity lost during the Fourth of July weekend at Grand Casino Mille Lacs is at the height of that region's tourist season." Berman also said he is pleased with the soft opening of Grand Casino Hinckley, which will celebrate its formal grand opening between June 11-21, 1992.
 At April 26, 1992, Grand Casinos Inc. reported shareholders' equity of $12.9 million, or $1.24 per share, with total liabilities of $1.6 million, compared with shareholders' equity of $4.4 million, or $0.56 per share, with total liabilities of $0.5 million at July 28, 1991. The company's current ratio was 1.6-to-1, with $990,889 in working capital.
 Subsequent to the close of the quarter, Grand Casinos raised approximately $40.4 million in a secondary offering of 2,875,000 shares of common stock. Berman said these funds are believed sufficient, when combined with revenues from existing casinos and other financing from unrelated parties, to fund the development and construction of all projects currently on the schedule.
 Grand Casinos, Inc., develops and manages casino gaming facilities for Indian Tribes on Indian land.
 For more information on Grand Casinos, Inc. via facsimile at no cost, simply dial 1-800-PRO-INFO and enter company code number 079.
 -0- 6/10/91
 /NOTE TO EDITORS: For financial tables, please call Jim White at number below./
 /CONTACT: Tom Brosig or Jim White, Grand Casinos 612-449-9092; or Michael Rosenbaum or Audrey Lowe of Financial Relations Board, 312-266-7800, for Grand Casinos/
 (GRND) CO: Grand Casinos Inc. ST: Minnesota IN: CNO SU: ERN


SH -- NY016 -- 8686 06/10/92 09:25 EDT
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