GARY, Ind., June 29 /PRNewswire/ -- The Majestic Star Casino, LLC is scheduled to conduct a conference call today at 4:30 p.m. (E.S.T.)  The
dial-in is 1-800-277-1581. A replay will be available after 6:30 p.m. (E.S.T.) on June 29, 2000 thru July 6, 2000.  The dial in for the replay is
1-800-405-2236 and the pass code is 729541. Michael E. Kelly, Chief Operating and Financial Officer scheduled the call to apprise the investment community of recent developments at Buffington Harbor, including the development and construction of a covered parking facility.  Mr. Kelly also will discuss the Company's current performance year to date.

    With respect to second quarter revenues, the Company is estimating gross gaming revenues of approximately $29.0 million versus a prior year actual of $30.5 million.  The Company recorded $10.3 million and $9.5 million in gross gaming revenues for the months of April and May, 2000 respectively.  The Company also stated that during the month of May, 2000 it experienced a low table hold of approximately 14.7% which decreased May's gross gaming revenues by an estimated $500,000.  With regards to second quarter slot coin-in and slot revenue, the Company anticipates being flat compared with the prior year.

    The Company also stated that with regards to second quarter EBITDA (defined as earnings before interest, taxes, depreciation and amortization) that the Company is estimating approximately $5.5 million. The Company also has revised its internal forecast of EBITDA for 2000 to approximately
$25.0 million.

    The Company today also will discuss its strong balance sheet that includes approximately $20.0 million in cash and cash equivalents including
$3.6 million which is classified on the balance sheet as a deposit for a letter of credit, the majority of which is anticipated to be returned to the Company later this year once certain development obligations are met pursuant to its Economic Development Agreement with the City of Gary.

    The Company as of May, 2000 had approximately $132.3 million of debt outstanding, the principal component being $130.0 million of 10-7/8% Senior Secured Notes.  The Company stated that it will spend approximately
$2.5 million to $3.0 million for capital improvements during fiscal year 2000, primarily for the upgrade and purchase of new slot products and enhanced slot signage.

    Lastly, Mr. Kelly announced that with regards to the parking facility the joint venture has not yet closed on the land purchase. The City of Gary, Gary New Century (a Barden owned Company) and EJ & E Railroad have been negotiating over access across the tracks. We now have a verbal agreement and definitive agreements are currently being prepared for review by the parties. In the interim, the Joint Venture Partners have expended an estimated $1.7 million in development and construction costs. The Joint Venture has a GMP contract with Tonn and Blank, the general contractors and Majestic Star is prepared to fund the balance of its equity commitment. Financing for the garage is anticipated to be completed during the third quarter and the partnership expects to be in the ground during September with a second quarter 2001 completion date.

    Majestic Star was founded in December 1993 as an Indiana limited liability company, to develop a riverboat casino in the City of Gary.  The Company's efforts resulted in the Indiana Gaming Commission granting the Company a riverboat owner's license on June 3, 1996.  The Company's operations began on June 7, 1996.

    The Company and Trump Indiana, the holder of a second gaming license to operate from the City, formed Buffington Harbor Riverboats to own and operate certain common facilities at Buffington Harbor such as the guest pavilion, vessel berths, parking lots and other infrastructure.  The Company and Trump each have a fifty-percent ownership interest in BHR.

    This press release includes various "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which represent the Company's expectations or beliefs concerning future events including those concerning second quarter and year-end revenues, EBITDA and other results.  Statements containing expressions such as "believes," "anticipates," "estimates" or "expects" used in the Company's press releases and reports filed with the Securities and Exchange Commission (including periodic reports on Form 1O-K and Form 1O-Q) are intended to identify forward-looking statements.  All forward-looking statements involve risks and uncertainties.  Although the Company believes its expectations are based upon reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurances that actual results will not materially differ from expected results.  The Company cautions that these and similar statements included in this press release and in previously filed periodic reports are further qualified by important factors that could cause actual results to differ materially from those in the forward-looking statements. Such factors include, without limitation, the following: the purchase of real estate for, and the design and construction of a covered parking facility located at the Company's gaming complex; the ability to fund planned development needs and to service debt from existing operations and from new financing; increased competition in existing markets or the opening of new gaming jurisdictions, a decline in the public acceptance of gaming; the limitation, conditioning or suspension of the Company's gaming license; increases in or new taxes imposed on gaming revenues or gaming devices; a finding of unsuitability by regulatory authorities with respect to the Company's officers, or key employees; loss and/or retirement of key executives; significant increase in fuel or transportation prices; adverse economic conditions in the Company's markets; severe and unusual weather in the Company's market and adverse results of significant litigation matters.

    Inquiries for additional information should be directed to Michael E. Kelly, Chief Operating and Financial Officer at 219-977-7823.

 

SOURCE  Majestic Star Casino, LLC

    -0-                             06/29/2000

    /CONTACT:  Michael E. Kelly of Majestic Star Casino, LLC, 219-977-7823/

    /Web site:  http://www.majesticstar.com/

 

CO:  Majestic Star Casino, LLC

ST:  Indiana

IN:  CNO

SU:  ERP