The Sands Regent Reports Second-Quarter and 2006 Financial Results

Results of Its Independent Investigation

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. October 14, 2008

LAS VEGAS, NV, March 23, 2006. The Sands Regent today announced financial results for its second quarter and first six months of fiscal 2006, ended December 31, 2005 and the results of its independent investigation of certain accounting matters.

For the second quarter ended December 31, 2005, revenues rose 15.0% year over year, to $22.3 million, versus $19.4 million for the second quarter ended December 31, 2004. Dayton Depot, acquired on September 1, 2005, contributed $1.5 million of the increase in net revenue, and the balance of the increase was attributable to same-store net revenue growth of 7.3%. The Company's income from operations, after adding back the one-time, non-cash charge of $419,000 relating to the loss on early termination of its Rail City land lease, improved 31.4% year over year, from $1.4 million in the fiscal 2005 second quarter to $1.8 million in the fiscal 2006 quarter. Net income for the fiscal 2006 second quarter was $603,000, or $0.09 per basic share, $0.08 diluted, a 21.1% increase as compared to net income of $498,000, or $0.08 per share basic, $0.07 diluted for the prior-year period.

Quarterly EBITDAR increased 15.7% year over year, from $3.3 million in the second quarter of fiscal 2005 to $3.8 million in the second quarter of fiscal 2006.

For the six months ended December 31, 2005, revenues rose 12.5%, to $46.4 million, from $41.2 million for the corresponding prior-year period. The Company's income from operations, after adding back the one-time, non-cash charge of $419,000 relating to the loss on early termination of its Rail City land lease, improved 12.6%, to $5.1 million in the six months ended December 31, 2005, compared to $4.5 million in the corresponding prior-year period. Net income for the six months ended December 31, 2005 was $2.5 million, or $0.35 per basic share, $0.33 diluted, as compared to net income of $2.1 million, or $0.36 per share basic, $0.33 diluted for the corresponding prior-year period.

Net income for the quarter and six months ended December 31, 2005 was adversely impacted by a one-time, non-cash charge of $419,000 pre-tax, $277,000 after-tax, or ($0.04) per basic and diluted share, relating to the early termination of the Rail City under-market land lease resulting from the Company's purchase of the property in December 2005.

Net income for the quarter and the six months ended December 31, 2005 were favorably impacted by the results of operations of Dayton Depot, acquired on September 1, 2005. Dayton's contribution to net income for the quarter was $166,000, or $0.02 per basic and diluted share. For the six months ended December 31, 2005, Dayton contributed $188,000, or $0.03 basic and $0.02 diluted, to net income.

EBITDAR for the six months ended December 31, 2005 increased 9.4% year over year, from $8.1 million in the six months ended December 31, 2004 to $8.9 million in the six months ended December 31, 2005.

Ferenc B. Szony, President and CEO of The Sands Regent, commented, "Aided by a strong Northern Nevada economy, Rail City and the Sands Regency achieved increases in revenue of 6.2% and 4.8% respectively. Operating income margins, after adding back the loss on early termination of land lease, improved at Rail City to 28.4% from 25.7%. Sands Regency experienced a slight decline it its operating income margin. At Gold Ranch, continued weakness in weekend traffic counts on Interstate 80 combined with high gasoline prices resulted in a decrease in gallons pumped. Gold Ranch reported an increase in revenue while operating income decreased $51,000 from the second quarter of fiscal 2005."

Mr. Szony concluded, "Early results from our most recent acquisition, Dayton Depot, have exceeded expectations. Customers are responding to the upgraded slot product. On January 16, 2006 we installed a slot player tracking system that will facilitate marketing opportunities. We expect to begin remodeling of the restaurant in the spring. On December 20, 2005 we completed the acquisition of the land required for the expansion of Rail City. Groundbreaking on the Rail City expansion is expected within the next few months. Completion of the expanded casino space and additional brew pub restaurant and bar are expected in late 2006."

The Company's Audit Committee has completed its independent investigation it announced it would undertake in its press release of February 14, 2006. The Audit Committee was aided in its review by outside counsel and a forensic accountant. During its investigation the Audit Committee did not become aware of any facts that caused it to believe that there was any material misstatement or omission in the Company's previously issued financial statements or that otherwise would necessitate a restatement of any of the Company's previously issued financial statements. Consequently, no restatement of any previously issued financial statements will be made. The Company filed its Quarterly Report on Form 10-Q for the quarter ended December 31, 2005 on March 22, 2006. With the filing of the Form 10-Q, the Company expects to regain compliance with Marketplace Rule 4310(c)(14), and will notify the Nasdaq Listing Qualifications Panel of this development.