Financial results for the second quarter ended 30 June 2007 show that the company’s Las Vegas Locals segment posted strong operating results, with increases in net revenues over the same period in 2006. The Downtown Las Vegas segment registered another solid quarterly performance and the Midwest and South sector saw a stabilisation of net revenue for the third consecutive quarter.

Keith Smith, President and Chief Operating Officer of Boyd Gaming, commented, "We are encouraged by the resilience of our Las Vegas Locals business, which grew despite a significant year-over-year increase in capacity. The Midwest and South continues to reflect normalization of our Treasure Chest operation; this was the third consecutive quarter at similar Adjusted EBITDA levels for Treasure Chest, and importantly, well ahead of pre- hurricane levels. At Blue Chip, we remain focused on the opening of an additional competitor in that market, and are optimistic about our long-term competitive position, especially with the addition of our new hotel late next year."

Second quarter net revenues in the Las Vegas Locals sector were US$211.2 million and US$235.2 million in the Midwest and South sector. Downtown Las Vegas generated US$65.0 million in net revenues, very slightly down from 2006 but adjusted EBITDA was slightly up. In Atlantic City, Borgata's gaming revenue rose 3.0% over last year's second quarter, as the property continued to lead the market. Borgata's market share also increased during the quarter, growing from 13.3% a year ago to 14.6% in the 2007 quarter.

Boyd Gaming says that development continues to progress with each of its key growth initiatives. The Water Club at Borgata, an 800-room US$400 million project, remains on budget and on schedule to open next year. The US$130 million expansion of Blue Chip in Michigan City, Indiana is well under way. The Dania Jai-Alai casino in Florida is at the design stage and the Echelon development on the Las Vegas Strip, expected to open towards the end of 2010, is under construction.

Bill Boyd, Chairman and Chief Executive Officer, said, "Our development projects will transform our Company, providing us with substantial growth opportunities well into the future. With Echelon, our Company will once again become a major player on the Las Vegas Strip, as we redefine the Las Vegas luxury resort experience. In Atlantic City, The Water Club will take Borgata to a new level of sophistication, reaching new visitors and adding a new dimension to our brand proposition. At Blue Chip, last year's casino expansion demonstrated our ability to leverage our brand in more distant markets than ever before, an opportunity we plan to seize with the addition of more amenities and upscale hotel rooms."

According to the company, a company-wide branding initiative continues tol position the individual properties as part of a larger network, creating additional synergies and further leveraging Boyd Gaming's highly-regarded blend of gaming excitement and personal service. The goal is to reward and build customer loyalty, drive cross-property visitation, and offer the ability to seamlessly earn and redeem rewards at any Boyd property. Implementation of the branding initiatives remains on schedule for a phased rollout beginning in the fourth quarter of this year. (E-08.01.07)

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