Littlefield Announces Q1 '08 Results

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. October 14, 2008

MAY 1, 2008. Littlefield Corporation (OTCBB: LTFD) today announced earnings for the first quarter of 2008. First quarter 2008 results were impacted by the effects of a broad program of renovations, re-openings and start-ups of new halls affecting eight locations within the Company's portfolio of 32 bingo centers including Pensacola Florida, San Angelo, Abilene, Odessa and Corpus Christi, Texas. The Company also announced plans to open additional halls in McAllen and El Paso, Texas later in the year. The San Angelo bingo hall is open and operating while the Corpus Christi bingo hall will open in early May.

The Q1 2008 earnings include the effect of approximately $573,000 of notable items: $416,000 from the affects of renovations and openings at several halls in Texas, and $143,000 of legal expenses and $14,000 for non cash expenses for compensation expense related to stock options. The legal expenses were mainly from our expansion plans and operations in South Carolina, Texas legal items, our completed Florida acquisition and our litigation with Furtney seeking recovery of prior settlements and other damages.

The Q1 2007 earnings include approximately $97,000 of notable items: $83,000 from legal expenses related to South Carolina, Texas and our attempts to expand into Arkansas, and $14,000 for non cash expenses for compensation expense related to stock options.

Highlights of the first quarter compared to last year follow:

1. Total consolidated Q1 2008 revenue was $3,123,931, down 10% from last year's record revenue level. Total Entertainment revenue for the quarter was off $84,113 or 4% mainly at recently renovated and re-opened halls in Texas. Other halls in its portfolio were up $62,973 or 3% from the comparable quarter last year. Hospitality revenue for the quarter was down $289,394 or 25%, mainly from lower event activity. In April, the Company sold its Word of Mouth business unit which was down $249,152 from the prior year's quarter.

2. Entertainment (bingo) Q1 2008 gross profit was $692,281, down 44% versus 2007 largely as a direct result of the renovation, re-opening and start-up activities.

3. Hospitality segment Q1 2008 gross loss of $229,935 compared to a gross loss of $141,097 in Q1 2007 on the lower sales levels. The sale of Word of Mouth closed as previously reported on 15 April 2008.

4. Excluding the noted items described above, Q1 2008 net income was $231,000 versus $455,000 in Q1 2007.