Concorde Gaming Reports Third Quarter Profits; Nine Months Net Revenue Up 20.3%

Business Wire, August 13, 2002

Business Editors

RAPID CITY, S.D.--(BUSINESS WIRE)--Aug. 13, 2002

Concorde Gaming Corporation (Pink Sheets:CGAM) announced financial results for the three and nine months ended June 30, 2002.

For the quarter ended June 30, 2002, the Company reported net income of $111,419, or $0.00 per share, compared to net income of $253,802, or $0.01 per share, for the same quarter a year ago. The prior year results included a one-time gain of $293,309 associated with the settlement of litigation. Net revenue for the quarter was $5,190,938, an increase of 8.5%, compared to net revenue of $4,785,388 for the same quarter a year ago. For the nine months ended June 30, 2002, net income was $756,375, or $0.03 per share, compared to a net loss of $(1,085,445), or $(0.05), per share for the same period a year ago. Net revenue for the nine months ended June 30, 2002 was $15,661,132, an increase of 20.3%, compared to net revenue of $13,014,824, for the same period a year ago.

"This represents our fifth consecutive profitable quarter," commented Jerry Baum, President and CEO of Concorde Gaming. "Continued strong revenue growth pushed our net income for the nine months ended June 30, 2002 over $750,000, or $0.03 per share. We also believe that our acquisition of the Golden Gates Casino real estate on July 31, 2002 strengthens our ability to continue these positive revenue trends in the future."

The Company's operating cash flow (income (loss) from operations plus depreciation and amortization) for the nine months ended June 30, 2002 and 2001 was $2,689,947 and $801,205 respectively. Operating cash flow for the three months ended June 30, 2002 and 2001 was $769,831 and $646,456 respectively.

The Golden Gates Casino contributed net revenues of $1,847,221 and segment profits of $503,503 for the three months ended June 30, 2002, an increase of 5.6% and 21.2%, respectively, over the same quarter last year. The offshore gaming vessel, the Princesa, contributed net revenues of $3,343,717 and segment profits of $11,967 for the quarter ended June 30, 2002, an increase of 10.2% and 114.5%, respectively, over the same quarter a year ago. The offshore gaming passenger count increased 16.1% in the current year quarter over the prior year quarter.

Concorde Gaming owns and operates two gaming properties with over 500 gaming devices in operation. The Company owns and operates a limited stakes gaming property, the Golden Gates Casino in Black Hawk, Colorado, and a day-cruise gaming property, the Casino Princesa based out of Miami, Florida. The Company's corporate offices are located in Rapid City, South Dakota.

Statements contained in this press release, which are not historical facts, are forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which can cause actual results to differ materially from those currently anticipated, due to a number of factors, which include, but are not limited to, changes in gaming regulations and tax rates in Colorado, Florida, and other jurisdictions, the level and rate of growth in the Company's operations, the Company's ability to continue to increase customer traffic to its properties, the Company's ability to continue to impose strong cost controls, and the effect of the Company's accounting policies and other risk factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time.

Concorde Gaming Corporation's Statement of Operations and Summary Balance Sheet were as follows:

             Concorde Gaming Corporation and Subsidiaries
                 Consolidated Statement of Operations

                        Three Months Ended       Nine Months Ended
                             June 30                 June 30
                        2002        2001         2002        2001
                     ----------  ----------  -----------  -----------
Gross revenues       $6,002,676  $5,469,325  $17,748,440  $15,335,912
Less promotional
 allowances             811,738     683,937    2,087,308    2,321,088
                     ----------  ----------  -----------  -----------
Net revenues          5,190,938   4,785,388   15,661,132   13,014,824

Cost and expenses     4,776,048   4,438,123   13,992,903   13,112,283
                     ----------  ----------  -----------  -----------
Income (loss) from
 operations             414,890     347,265    1,668,229      (97,459)

Other income             20,542     303,034       69,331      325,687


Interest (expense)     (324,013)   (396,497)    (981,185)  (1,313,673)
                     ----------  ----------  -----------  -----------
Income (loss) before
 income taxes           111,419     253,802      756,375   (1,085,445)

Income taxes               --          --           --           --
                     ----------  ----------  -----------  -----------
Net income (loss)    $  111,419  $  253,802  $   756,375  $(1,085,445)
                     ==========  ==========  ===========  ===========

Net income (loss) per
 share               $     0.00  $     0.01  $      0.03  $     (0.05)
                     ==========  ==========  ===========  ===========


                      Consolidated Balance Sheet
                             June 30, 2002

Assets
------
Cash and cash equivalents                  $ 1,372,238
Other current assets                           674,917
                                           -----------
  Total current assets                       2,047,155



Property and equipment, net                 12,767,797

Other assets and intangibles, net            1,608,897
                                           -----------
                                           $16,423,849
                                           ===========


Liabilities
-----------
Notes payable and current maturities      $  1,521,900
Other current liabilities                    1,813,011
                                          ------------
  Total current liabilities                  3,334,911

Long term debt, less current maturities      4,802,807

Note payable to related party               10,157,273

Stockholders (deficit)                      (1,871,142)
                                          ------------
                                          $ 16,423,849
                                          ============