Second quarter results to 30 June 2005 increased by 14% from the previous year for Station Casinos, Inc. and marked the fourteenth consecutive quarter of year over year growth. The company, founded in 1976 in Las Vegas, pioneered ‘locals’ gaming in the city and caters primarily to people living and working in the area. Around 11,000 employees work at Station’s eight gaming and entertainment complexes and five smaller casinos, and this year Fortune Magazine named Station Casinos as one of the Top 100 Companies to Work For.

On 15 April 2004 the groundbreaking ceremony for the Red Rock Station Resort and Casino was held. Since then the company has announced an accelerated expansion of Phase II of the development, a decision influenced by exceptional operating results of its Las Vegas properties and an analysis of future prospects in the market. The first phase of Red Rock should open by the end of March 2006 and the second phase, if construction starts as planned late this year, by the end of 2006. The 400-room hotel will now have 850 rooms, and the meeting and convention space will increase to 94,000 sq ft. There will also be a larger gaming floor with more slot and video poker machines as well as 60 gaming tables, a state-of-the-art race and sports book, 600-seat bingo and a 12-table poker room.

The joint venture announced yesterday, with Cloobeck Molasky Partners I, LLC (Cloobeck Malasky) is for 600 luxury residential units on around 8 acres adjacent to the Red Rock hotel and pool area. Station will own 80% of the joint venture with Cloobeck Malasky holding the remaining 20%. Cloobeck Malasky has previously developed a Las Vegas time-share resort as well as high-rise condominiums in San Diego, Long Beach and Oakland, California. The partnership is seen as a means of maximizing the value of Station’s land holdings and lowering its overall investment in the project.

On declaring the quarterly cash dividend of 25 cents per share, up 19% from the previous quarter, Station Casinos Executive VP Glenn C Christensen remarked, "Our strong operational performance and significant free cash flows has allowed us to provide significant cash returns to our shareholders while continuing to grow the business through new unit development and master-planned expansions.” Yesterday Station Casinos also announced the Phase III master-planned expansion of Green Valley Ranch, one of its two operations in Henderson, Nevada. The company owns or controls the largest portfolio of undeveloped gaming-entitled real property in the Las Vegas metropolitan area. (E-07.29.05)

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