In mid-June last year Boyd Gaming Corporation held a groundbreaking ceremony for its multi-property resort destination planned for the Las Vegas Strip. Calling the project one of the most exciting and ambitious developments on the Strip, the 87-acre site featuring an extensive array of dining, nightlife, shopping and entertainment experiences was scheduled to open in the autumn of 2010.

Speaking at that ceremony, President and Chief Executive Officer of Boyd Gaming's Echelon Resorts, Bob Boughner, stated, "We are creating a destination resort that will be seen for miles, and yet, be accessible within feet. With Echelon, we are making the most of our extraordinary and highly visible Las Vegas Strip site by building five hotels with world class amenities, in one dramatic phase."

Just three months earlier Boyd announced the completed acquisition of Dania Jai Alai at Florida’s Dania Beach, one of the four pari-mutuels approved for 1,500 Class III slot machines. The company at that time planned to begin construction before the end of 2007 with a grand opening for the end of 2008. However, before the close of 2007 Boyd was reconsidering the feasibility of the project as the three other pari-mutuels that were already operational had found revenues below projections.

Reporting its second quarter results today, Boyd Gaming says that the difficult environment in capital markets and weak economic conditions has caused it to take the decision to delay the Echelon development. If conditions improve then Boyd hopes to begin construction within one year. Keith Smith, President and Chief Executive Officer of Boyd Gaming, commenting on the decision to delay Echelon: "The current economic climate is unprecedented in recent years. While we remain enthusiastic about the long-term prospects for the Las Vegas market and Echelon, this is the right decision for our Company at this time.

He added, “This decision is not a reflection of the merits of the project, nor the accomplishments of our professional development team, but rather the challenges we, and many other businesses, face in today's uncertain business climate. We remain fully committed to Echelon, and convinced that it will produce long-term, sustainable growth for our Company in the years to come. We look forward to resuming construction as soon as we are able to do so.”

Boyd, owner and operator of 16 gaming entertainment properties located in Nevada, New Jersey, Mississippi, Illinois, Indiana, and Louisiana, said that second-quarter income from continuing operations fell to $21.7 million, or 25 cents a share, from $22.9 million, or 26 cents a share, in the same period a year ago. Revenue fell 10% to $460.8 million from $511.4 million a year earlier, with the Las Vegas Locals segment revenue falling by 6.6% in the second quarter, and the Midwest and South segment revenue dropping by 15%. (E-08.01.08)

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