Butler National Corp. reports the approval of a management contract for Class II and Class III gaming in Oklahoma;

Business Wire, Jan 15, 1997

OLATHE, Kan.--(BUSINESS WIRE)--Jan. 15, 1997--

A Summer 1997 opening is expected

Butler National Corp. reported that a Management Contract between the Miami and Modoc Tribes of Oklahoma and Butler National Service Corp. for the construction and operation of a Class II and Class III Indian Gaming establishment was approved by Harold A. Monteau, chairman of the National Indian Gaming Commission, on Jan. 14, 1997.

The establishment, to be known as the Stables, will offer Class III (Off-Track Betting "OTB") along with Class II (high-stakes bingo) on Modoc Tribal lands adjacent to Tribal headquarters on G Street in Miami, Okla.

Butler National will consult with the development and will manage the Stables for the tribes. The Stables is planned to operate in a new 22,000 square-foot building. The complex will contain off-track betting windows, a bingo hall, sports bar and restaurant. The approved Management Contract was originally filed by the Tribes in September 1994. The contract term is five years with a two-year conditional option. Butler National, as the Manager, will receive a 30% share of the profits. Tribal leaders have pledged 2% of their gaming proceeds to the State of Oklahoma and 2% to Ottawa County, Okla., for direct services to be provided to the establishment.

The Stables will be located about one mile west of Interstate 44, one of the most heavily travelled highways between the Midwest and the western United States. Butler National and the Miami and Modoc Tribes expect that this facility will draw from the local-area residents, area tourists and travelers along I-44. Major cities within an easy drive of the property include: Branson, Joplin, Carthage, and Springfield, Mo.; Fort Scott, Pittsburg, Baxter Springs, and Coffeyville, Kan.; Tulsa, Miami, Bartlesville, Okla.; and the populated retirement communities in northwest Arkansas.

Management Comments:

"We are pleased that the Miami and Modoc Tribes received final approval for their Stables gaming establishment. Butler National is proud to be selected to assist with the development and to manage this joint venture between these two leading Indian tribes. This approved contract is unique because it is a cooperative venture between two Indian tribes and should be Oklahoma's first Class III gaming facility.

"I am happy that the Stables requires no further approvals. The State of Oklahoma, the National Indian Gaming Commission and the Secretary of the Interior have all approved the Stables. The City of Miami, Oklahoma, and the Miami Agency of the Bureau of Indian Affairs have been very cooperative and assisted with the extended approval process. We expect to have the facility operational in the summer of 1997. We expect management fees from the Stables to make a significant contribution to Butler National's revenues and earnings," said Clark D. Stewart, president of the company.

Our Business:

Butler National Corp. operates in the Aerospace and Services business segments. The Services segment includes food distribution, electronic monitoring of water pumping stations, temporary employee services, Indian gaming management services and administrative management services. Aerospace includes the manufacture of airborne electronic switching equipment for McDonnell Douglas and structural modification of business aircraft.

For more information, or for a complete copy of Butler National's latest 10-Q, contact the individual listed below.

CONTACT: Butler National Corp.

Edward J. Matukewicz, 913/780-9595

fax, 913/780-5088

1546 E. Spruce Rd.

Olathe, Kan. 66061