Archon Corporation Reports Second Fiscal Quarter 2004 Financial Results LAS VEGAS, May 17 /PRNewswire-FirstCall/ -- Archon Corporation (the "Company" or "Archon") (BULLETIN BOARD: ARHN) , a company headquartered in Las Vegas, announced today its consolidated financial results for its second fiscal quarter ended March 31, 2004. For the quarter ended March 31, 2004, the Company reported net revenues of $12.9 million as compared to revenues of $13.1 million in the same quarterly period of 2003. The Company's wholly-owned, significant operating subsidiary, Pioneer Hotel and Gambling Hall, reported net revenues of $9.4 million during the three months ended March 31, 2004, a 3% increase when compared to net revenues of $9.2 million for the three months ended March 31, 2003. The Company reported a net loss applicable to common shares of $800,000 for the 2004 quarter, or $0.13 per common share, compared to a net loss applicable to common shares of $1.7 million, or $0.27 per common share, for the 2003 quarter. For the six months ended March 31, 2004, the Company reported net revenues of $24.5 million as compared to net revenues of $24.4 million in the same six-month period of 2003. The Company's wholly-owned, significant operating subsidiary, Pioneer Hotel and Gambling Hall, reported net revenues of $17.4 million during the six months ended March 31, 2004, a 1% increase when compared to net revenues of $17.3 million for the six months ended March 31, 2003. The Company reported a net loss applicable to common shares of $2.7 million for the 2004 six-month period, or $0.44 per common share, compared to a net loss applicable to common shares of $3.5 million, or $0.57 per common share, for the 2003 six-month period. ARCHON CORPORATION Condensed Consolidated Earnings Summary for the Three and Six-month Periods Ended March 31, 2004 and 2003 In thousands, except per and outstanding share information (unaudited) Three Months Ended Six Months Ended 2004 2003 2004 2003 Revenues $12,860 $13,075 $24,543 $24,375 ========= ========= ========= ========= Operating income $2,361 $1,976 $3,584 $3,187 Interest expense (3,251) (4,178) (7,027) (8,068) Interest income 240 240 502 673 -------- -------- -------- -------- Loss before federal income tax benefit (650) (1,962) (2,941) (4,208) Federal income tax benefit 221 667 1,000 1,431 -------- -------- -------- -------- Net loss (429) (1,295) (1,941) (2,777) Dividends accrued on preferred shares (394) (378) (788) (757) -------- -------- -------- -------- Net loss applicable to common shares $(823) $(1,673) $(2,729) $(3,534) ========= ========= ========= ========= Average common and common equivalent shares outstanding 6,221,431 6,221,431 6,221,431 6,221,431 ========= ========= ========= ========= Net loss per basic and diluted common shares $(0.13) $(0.27) $(0.44) $(0.57) ========= ========= ========= ========= This press release may be deemed to contain forward-looking statements including comments regarding trends and performance expectations that are subject to change. Actual results may differ materially from those described in any forward-looking statements. Additional information concerning potential factors that could affect the Company's financial results are included in the Company's Form 10-K, Form 10-K/A and Form 10-Q. Archon Corporation operates the Pioneer Hotel and Gambling Hall in Laughlin, Nevada and owns real property in Las Vegas, Nevada for possible future development as well as two investment properties. DATASOURCE: Archon Corporation CONTACT: John M. Garner, Chief Financial Officer of Archon Corporation, +1-702-732-9120, ext. 229, fax, 702-732-9245

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