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GRAND CASINOS REPORTS THAT PROFITABLE SECOND QUARTER MET EXPECTATIONS FOR SEASONALLY SLOW QUARTER

 GRAND CASINOS REPORTS THAT PROFITABLE SECOND QUARTER
 MET EXPECTATIONS FOR SEASONALLY SLOW QUARTER
 MINNEAPOLIS, March 11 /PRNewswire/ -- Grand Casinos, Inc. (NASDAQ-NMS: GRND), which manages a Las Vegas-style casino on the Mille Lacs Indian reservation north of Minneapolis, today reported it operated profitably during the second fiscal quarter and the first half ended Jan. 26, 1992.
 Grand Casinos, Inc. reported earnings of $319,478, or $0.03 per share, in the second fiscal quarter on revenues of $994,020. For the 26-week period, the company reported earnings of $1,225,675, or $0.12 per share on 9,853,115 pro forma weighted average shares outstanding and revenues of $2,555,025. Grand Casino Mille Lacs did not open until April 1991, so the prior-year periods are not comparable.
 Under its management contract with the Mille Lacs Band of Ojibwe Indians, Grand Casinos, Inc. derives no revenues until the casino is operating profitably, and then shares in 40 percent of the casino's earnings, with the other 60 percent distributed to the Band.
 Lyle Berman, chairman and chief executive officer, said the results of the second fiscal quarter met expectations given the weather, road conditions and the holiday seasons, which tend to reduce tourist activity and traffic in the area. In addition, corporate expenses increased during the second fiscal quarter because the company hired additional staff in anticipation of the May 1992 opening of Grand Casino Hinckley and other developmental activities.
 Grand Casinos, Inc. reported shareholders' equity of $12.6 million, or $1.21 per share, at the close of the quarter, with total liabilities of $0.4 million. The company's current ratio was 9-to-1, with more than $2.7 million in working capital.
 Grand Casinos, Inc., develops and manages casino gaming and bingo facilities for Indian Tribes on Indian land. The company's common stock is traded on the NASDAQ National Market System under the symbol GRND.
 GRAND CASINOS, INC.
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (Unaudited)
 Six Months Ended
 1/26/92 1/27/91
 Revenues:
 Distributions from Grand Casinos
 Mille Lacs $2,555,025 --
 Costs and expenses:
 Payroll and related 256,562 --
 Incentive compensation 30,885 --
 Rent expense 15,253 --
 Professional fees 100,837 --
 Depreciation and amortization 54,642 --
 Travel and relocation 109,320 --
 Other general administrative 210,195 62,858
 Total costs and expenses 777,694 62,858
 Earnings (loss) from operations 1,777,331 (62,858)
 Other income (expense):
 Other income 1,400 --
 Interest income 313,603 --
 Interest expense (49,542) --
 Total other income, net 265,461 --
 Income (loss) before income taxes 2,042,792 (62,858)
 Provision for income taxes (234,728) --
 Net earnings (loss) $1,808,064 $(62,858)
 Pro forma data
 Historical net earnings (loss) $2,042,792 $(62,858)
 Pro forma provision for income taxes
 at 40 percent (817,117) --
 Pro forma net earnings (loss) $1,225,675 $(62,858)
 Pro forma net earnings (loss)
 per common share $0.12 $(0.01)
 Pro forma weighted average common
 shares outstanding 9,853,115 7,769,036
 GRAND CASINOS, INC. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (Unaudited)
 Three Months Ended
 1/26/92 1/27/91
 Revenues:
 Distributions from Grand Casino
 Mille Lacs $994,020 --
 Costs and expenses:
 Payroll and related 166,459 --
 Incentive compensation 30,885 --
 Rent expense 14,901 --
 Professional fees 100,837 --
 Depreciation and amortization 52,441 --
 Travel and relocation 92,745 --
 Other general administrative 103,982 60,000
 Total costs and expenses 562,250 60,000
 Earnings (loss) from operations 431,770 (60,000)
 Other income (expense):
 Other income (46,269) --
 Interest income 193,759 --
 Interest expense (46,796) --
 Total other income, net 100,694 --
 Income (loss) before income taxes 532,464 (60,000)
 Provision for income taxes (234,728) --
 Net earnings (loss) $297,736 $(60,000)
 Pro forma data
 Historical net earnings (loss) $532,464 $(60,000)
 Pro forma provision for income
 taxes at 40 percent (212,986) --
 Pro forma net earnings (loss) $319,478 $(60,000)
 Pro forma net earnings (loss)
 per common share $0.03 $(0.01)
 Pro forma weighted average common
 shares outstanding 10,460,000 7,816,148
 -0- 3/11/92 R
 /CONTACT: Tom Brosig of Grand Casinos, 612-449-9092, or Michael Rosenbaum of the Financial Relations Board, 312-266-7800, for Grand Casinos/
 (GRND) CO: Grand Casinos, Inc. ST: Minnesota IN: CNO SU: ERN


KH -- MN001R -- 7540 03/11/92 17:33 EST
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Date:Mar 11, 1992
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