Second quarter financial and operational highlights include:

• The leisure and recreation business outperformed most key budgeted measures including occupancy rate, room revenue per available room, (�RevPar�) total revenue per available room and profit margins.
• RevPar rose 9.7% over the year-ago period due to increases in both ADR and occupancy rate in spite of slow millennium period travel patterns. The Company�s RevPar increase was better than the lodging industry average and continues to validate management�s strategy of owning, managing and operating premier luxury resorts in markets with significant barriers to new properties.
• Total revenue per available room climbed 8.6% over the prior year three-month period.
• Earnings before interest, taxes, depreciation and amortization (�EBITDA�) for the leisure and recreation business rose 4.1% over the comparable period last year with the Company�s Arizona Biltmore Hotel posting double-digit EBITDA percentage gains.
• Naples Grande Golf Club scheduled to open in early February and will begin booking rounds from the Company�s nearby Registry and Edgewater Resorts.
• Analyst performance expectations for consolidated business operations for fiscal 2000 include an 8.8% increase in revenue, a 12.0% increase in EBITDA and at least a 12.5% increase in Adjusted EBITDA over fiscal 1999.

Quarterly Results

Revenue for the three months ended December 31, 1999 increased to $114.6 million, up from $105.0 million for the three months ended December 31, 1998.  Operating income for the recently completed quarter totaled $16.7 million compared to $20.5 million for the corresponding quarter of the prior year.  The decrease was caused by a $4.0 million decline in operating income from the entertainment and sports business partially due to higher Panthers� player salaries.  Net income was $3.5 million for the three months ended December 31, 1999 versus $9.0 million in the year-ago period. The current period net income includes higher interest expense due to a higher overall cost of capital than during the same quarter last year as well as decreased operating income from the entertainment and sports business.

Six Month Results

Revenue for the six months ended December 31, 1999 increased to $168.7 million, up from $157.3 million for the six months ended December 31, 1998.  Operating loss for the first half of fiscal 2000 totaled $1.1 million compared to operating income of $10.9 million for the corresponding period of the prior year.  Lower operating results were caused by a $8.7 million reduction in operating income from the entertainment and sports business resulting principally from higher Panthers� player salaries and the buyout of certain player contracts.  In addition, consolidated corporate general and administrative expense included certain non-recurring corporate legal charges during the six months ended December 31, 1999.  Net loss was $27.5 million for the six months ended December 31, 1999 versus $11.1 million for the year-ago period.  Besides the factors discussed above, the current period net loss includes higher interest expense due to a higher overall cost of capital than during the six months last year.  The Company expected losses for the first half of the year because of lower demand for its South Florida resorts in the summer months and because the Florida Panthers Hockey Club recognizes revenue over the regular hockey season, which commenced during the second fiscal quarter.
 

Boca Resorts, Inc., formerly known as Florida Panthers Holdings, Inc., owns luxury resort properties in Florida and Arizona. The Company�s resort portfolio includes the Boca Raton Resort Club, the Arizona Biltmore Hotel, the Registry Resort at Pelican Bay, the Edgewater Beach Hotel, the Hyatt Regency Pier 66 Hotel and Marina, the Radisson Bahia Mar Resort and Yachting Center and the Grande Oaks Golf Club. The Company also owns the Florida Panthers Hockey Club and has interests in the operations of the National Car Rental Center located in Broward County, Florida, the Miami Arena and two ice skating rinks.