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GRAND CASINOS RECORDS SECOND QUARTER LOSS, FIRST HALF PROFIT; LOWER INDIAN GAMING REVENUES, GULF COAST STARTUP COSTS CITED IN LOSS

 MINNEAPOLIS, March 15 /PRNewswire/ -- Grand Casinos, Inc. (NASDAQ-NMS: GRND) today announced that lower management fees from two casinos in Minnesota and substantial pre-opening expenses for its Gulf Coast casinos led to a loss in the second quarter ended Jan. 31, 1993. It was the first quarterly loss for the company, which is a leading participant in emerging gaming markets.
 Revenues were virtually identical versus the same period last year, but management fees from the operating casinos declined during the seasonally weaker winter months. The second quarter net loss of $492,901 or $.03 per share compared with pro forma earnings of $319,478 or $.03 per share in the prior year. Tom Brosig, chief operating officer, noted the second quarter loss was at the low end of analysts' published estimate range.
 For the first half, revenues of $5,028,627 were up 75 percent from $2,870,028 a year earlier, while net earnings of $539,441, or $.04 per share, compared with pro forma net earnings of $1,225,675 or $.11 per share a year earlier.
 Grand Casinos, Inc. manages two Las Vegas-style casinos on behalf of the Mille Lacs Band of Ojibwe Indians in northern Minnesota, and both casinos were profitable for both the second quarter and six months ended Jan. 31. However, management fees were lower than in the prior year, due to a significant decline in fees from Grand Casinos Mille Lacs. Grand Casino Hinckley, which opened in May 1992, produced most of the management fees for the company.
 "Since opening last May, this property has continued to gain momentum and today operates at or near capacity on most weekends," Brosig said. "While Grand Casino Mille Lacs did not match its prior year performance, activity has picked up in February and we are encouraged to see our regular customers find their way back to Grand Casino Mille Lacs."
 Brosig added that the company continues to incur substantial expenses related to its rapid expansion program. As previously reported, Grand Casinos has established an experienced management team capable of operating eight casinos, although only two casinos are in operation today. In addition, substantial pre-opening costs of staffing, travel and professional fees are being recorded for the company's Gulf Coast casinos.
 "The first of these, Grand Casino Gulfport, is on schedule to open on May 15, 1993," said Lyle Berman, chairman and chief executive officer. "This casino will be the largest floating casino in the world and will set a new standard for dockside gaming facilities," he said.
 On Feb. 2, 1993, the company completed a successful debt offering that raised $115 million to be used for the Gulf Coast casinos. Berman said Grand Casino Biloxi should open in October 1993.
 Brosig said various accounting entries related to the debt offering are likely to lead to a net loss in the company's third fiscal quarter, but those one-time charges will not reflect the success of Grand Casinos' operations.
 Excluding the impact of the debt offering, which closed after the end of the quarter, Grand Casinos ended the second quarter with shareholders' equity of $55 million and a current ratio of 3.47-to-1.
 Grand Casinos, Inc. develops and manages casino gaming facilities for Indian tribes on Indian land and is currently developing its first company-owned gaming facilities, which are located on the Gulf coast of Mississippi.
 For more information on Grand Casinos via facsimile at no cost, simply dial 1-800-PRO-INFO and enter company code number 079.
 GRAND CASINOS, INC. AND SUBSIDIARIES
 Consolidated Statement of Earnings
 Three months Six months
 1/31/93 1/26/92 1/31/93 1/26/92
 Revenues $1,186,528 $1,187,779 $5,028,627 $2,870,028
 Income (loss)
 before taxes (817,901) 532,464 874,441 2,042,792
 Net earnings
 (loss) (A) (492,901) 319,478 539,441 1,225,675
 Net earnings
 (loss) per share $(0.03) $0.03 $0.04 $0.11
 Weighted average
 shares
 outstanding 14,668,432 11,506,000 14,668,466 10,838,427
 (A) Earnings from the three and six months ended Jan. 26, 1992 represents pro forma net earnings.
 Consolidated Balance Sheet
 Three months
 1/31/93 11/1/92
 CURRENT ASSETS:
 Cash & cash equivalents $ 1,759,970 $15,676,334
 Total current assets 10,795,276 26,490,428
 Total assets $70,431,551 $65,930,579
 LIABILITIES:
 Total current liabilities 3,112,034 3,766,781
 Total liabilities 15,458,333 10,460,712
 SHAREHOLDERS' EQUITY:
 Total shareholders' equity 54,973,218 55,469,867
 Total liabilities and equity $70,431,551 $65,930,579
 -0- 3/15/93
 /CONTACT: Tom Brosig, COO of Grand Casinos, 612-449-9092; or


Michael Rosenbaum, 312-266-7800, or Sue Caulton, 415-986-1591, both of Financial Relations Board, for Grand Casinos/
 (GRND)


CO: Grand Casinos, Inc. ST: Minnesota IN: CNO SU: ERN

SH -- NY069 -- 8787 03/15/93 14:40 EST
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