Mohegan Sun reported earnings before interest, taxes, depreciation, amortization, pre-opening expenses and fees paid to Trading Cove Associates (�EBITDAM�) of $65.1 million for the third quarter ended June 30, 2000. In the same period last year, Mohegan Sun generated EBITDAM of $62.3 million.  The Company achieved an EBITDAM margin of 35.1 percent for the most recent quarter.

Net revenues increased 9.8 percent from the prior year quarter to $185.5 million. During the quarter ended June 30, 2000, Mohegan Sun averaged a gross daily win per slot machine per day of $497 compared to $441 in the same period of the prior year. 

Gross slot revenue of $136.9 million for the quarter represented an increase of $15.6 million or 12.5 percent over the prior year. 

In June, Mohegan Sun began operation of the Uncas Pavillion, its 4,500 seat entertainment venue.  Management believes that this additional entertainment amenity has attracted more patrons to the property.

The EBITDAM for the nine months ended June 30, 2000 was $182.9 million, an 8.6 percent increase over the same period last year.  For the nine months ended June 30, 2000, net revenues were $542.5 million, an increase of $56.5 million, or 11.6 percent over the same period last year.  The increase in net operating revenues for the nine months was driven by strong growth in table games drop and slot handle.

For the nine months ended June 30, 2000, Mohegan Sun averaged a gross daily win per slot machine per day of $472 compared to $420 in the same period of the prior year.  Gross slot revenues were $391.1 million for the nine months ended June 30, 2000, representing an increase of $44.7 million or 12.9 percent over the prior year.  Management is pleased with the 10.8 percent growth of the Connecticut slot market for the nine months ended June 30, 2000.

Mohegan Sun EBITDAM margin for the nine months ended June 30, 2000 was 33.7 percent compared to 34.7 percent for the prior year.  The slight margin decline is attributable to increases in casino marketing expenses.  Management believes the additional marketing spending has strengthened Mohegan Sun�s competitive position in the Connecticut market, as evidenced by the growth in gaming revenue for the quarter.

Mohegan Tribal Council Chairman, Roland Harris, said �The Tribe is extremely happy with the operating performance of the casino during the quarter�.  Chairman Harris attributes the success, largely, to the outstanding work of the casino employees.

Project Sunburst

Construction continues on Project Sunburst, the $800 million expansion of Mohegan Sun.  Project Sunburst consists of 115,000 square feet of additional gaming space, a 1,200 room luxury hotel, 100,000 square feet of convention space, a 10,000 seat arena, spectacular restaurants and approximately 150,000 square feet of retail space.  During the quarter $51.4 million was expended on the expansion project.  Cumulative spending for the project through June 30, 2000 is $158.3 million.  Project spending for the remainder of fiscal 2000 is anticipated to be $99.6 million.  The Casino of the Sky, Mohegan Sun Arena and the Shops at Mohegan Sun are anticipated to open in the fall of 2001.  The hotel and convention space will open in the spring of 2002.

Balance Sheet Items

The Company�s balance sheet reflected cash, and cash equivalents of $201.2 million as of June 30, 2000.  The Company incurred maintenance capital expenditures of $3.8 million and $24.6 million for the three-month and nine-month periods.

The Company had $510.2 million debt outstanding at June 30, 2000.