For the fiscal quarter ended August 31, 2000, the Company achieved record third quarter EBITDA (operating income, excluding non-recurring items, plus depreciation and amortization) of $34.3 million on record net revenues of $125.0 million. This compares to last year�s EBITDA of $25.0 million on net revenues of $88.5 million. EBITDA for the third quarter increased 37% accompanying a 41% jump in net revenues from the same period last year.

The Company posted a 12% increase in net income from $7.2 million for the third quarter of 1999 to $8.1 million for the same period in 2000.

For the most recent nine-month period, Harveys generated record EBITDA of $90.1 million on record net revenues of $351.5 million. In comparison, 1999�s net revenues of $241.9 million generated EBITDA of $57.7 million. The 45% increase in net revenues for the first three quarters boosted EBITDA 56% over the previous year.

The figures for the three and nine months ending August 31, 2000 include results from the Bluffs Run Casino which was added to Harveys Casino Resorts� consolidated properties on October 6, 1999. Income for the first nine months of 2000 was $18.1 million, a 52% increase over the prior year�s income of $11.9 million. Income for 2000 was adjusted to exclude the combined effects, net of tax, of $756 thousand in business development costs that were written-off during the second quarter; $243 thousand in merger-related costs incurred during the third quarter; and $3.1 million for the cumulative effect of a change in accounting principle. Including these costs, the Company posted net income of $14.0 million for the first three quarters of 2000. Similarly, the first nine months of 1999 was adjusted to exclude the combined effects, net of tax, of $15.1 million for merger-related costs and non-recurring items and $869 thousand for the loss on early retirement of debt. Including these costs, the Company posted a net loss of $4.1 million for the first three quarters of 1999.

Chuck Scharer said, �The benefits of our growth plan, particularly in Council Bluffs, Iowa, have been rewarding and have substantially increased profits.

However, to understand Harveys Casino Resorts success, you must also look to the continued improved performance of our Lake Tahoe property and the renewed appeal of Tahoe as a destination resort.  Our formula continues to work: focus on the customer, outstanding employees, and differentiated properties that are well managed to produce substantial profits.�

As previously announced, on April 17, 2000 a subsidiary of Harveys, PH Casino Resorts, Inc. (PHCR), entered into a definitive agreement with Pinnacle Entertainment pursuant to which PHCR will acquire by merger all of the outstanding capital stock of Pinnacle Entertainment. Consummation of the merger is subject to, among other things, various regulatory approvals, approval by the majority of Pinnacle stockholders, completion of financing for the transaction, and other conditions precedent previously announced.
 

Founded in 1944, Harveys Casino Resorts owns and operates Harveys Resort and Casino, a AAA Four-Diamond full-service resort at Lake Tahoe, Nevada;
Harveys Casino Hotel in Council Bluffs, Iowa; and Harveys Wagon Wheel Hotel/Casino in Central City, Colorado. Harveys Casino Resorts also manages Bluffs Run Casino in Council Bluffs, Iowa.

For more information on the potential factors that could affect the Company�s financial results, review the Company�s filings with the Securities and Exchange Commission, including the Company�s Annual Report on Form 10-K and the Company�s other filings with the SEC.