ISLE Isleworth Healthcare Acquisition Corporation

Nevada Gold & Casinos Announces Third Quarter Results HOUSTON, Feb. 8 /PRNewswire-FirstCall/ -- Nevada Gold & Casinos, Inc. (AMEX:UWN) today announced financial results for the third quarter of fiscal 2005 ended December 31, 2004. As expected, due to construction disruption related to the expansion at both of the Isle of Capri-Black Hawk joint venture properties in Black Hawk, Colorado, net income for the third quarter was $828,000 compared to $1.8 million in the third quarter of fiscal 2004. Net income per diluted common share was $0.06, compared to $0.12 in the prior year period. Diluted weighted average common shares outstanding in the third quarter were 14.3 million compared to 15.2 million in the prior year period. During the three months ended December 31, 2004, the Company repurchased 390,000 shares of its common stock in the open market at an average price of $10.88 per share. For the third quarter of fiscal 2005, revenues decreased to $1.7 million compared to $2.7 million in the third quarter of fiscal 2004. The revenue decrease was primarily due to a $1.4 million decrease in interest income related to a lower balance in outstanding notes receivable from the River Rock project. The Company's equity in earnings from Isle of Capri-Black Hawk (IC-BH), the company's joint venture with Isle of Capri Casinos, decreased to $1.5 million from $2.5 million in the prior year period. IC-BH's third quarter EBITDA before management fees ("Adjusted EBITDA") was $8.8 million compared to $12.3 million in the prior year period. A reconciliation of adjusted EBITDA to net income is provided in the attached financial statements. The decrease in earnings and adjusted EBITDA is attributable to the construction disruption related to the expansion project at the joint venture's two properties in Black Hawk. Subsequent to the end of the third quarter, River Rock Casino repaid $5.0 million of the remaining $10.0 million outstanding loan and the Company received a $2.3 million income tax refund, both of which were used to reduce outstanding indebtedness. H. Thomas Winn, Chairman, President & CEO of Nevada Gold & Casinos, Inc. commented, "Our third quarter financial results were impacted by construction disruptions at Black Hawk. That said, we believe these issues are almost behind us as we near the completion of the casino and parking expansion. In addition, River Rock's parking projects are substantially complete which leaves the property well positioned to benefit from its large target market and increased marketing efforts in calendar 2005." Nine-Month Results Net income for the nine month period ended December 31, 2004 was $3.7 million compared to $5.7 million in the prior year period. Net income per diluted common share was $0.26, compared to $0.39 in the prior year period. Diluted weighted average common shares outstanding in the nine months ended December 31, 2004 were 14.8 million compared to 15.4 million in the prior year period. For the nine months ended December 31, 2004, revenues decreased to $5.1 million compared to $7.0 million for the nine months ended December 31, 2003. The revenue decrease was primarily due to a $1.6 million decrease in interest income related to a lower balance in outstanding notes receivable from the River Rock project. The Company's equity in earnings from Isle of Capri-Black Hawk (IC-BH), the Company's joint venture with Isle of Capri Casinos, decreased to $5.5 million for the nine months ended December 31, 2004 compared to $7.9 million in the prior year period. IC-BH's adjusted EBITDA for the nine- month period was $29.6 million compared to $39.3 million in the prior year period. Reconciliations of adjusted EBITDA to net income are provided in the attached financial statements. The decrease in earnings and adjusted EBITDA is attributable to the construction disruption related to the expansion project at the joint venture's two properties in Black Hawk. Financial Guidance The Company expects net income per diluted common share of $0.12 to $0.14 for the fourth quarter ending March 31, 2005 and $0.38 to $0.40 for the 2005 fiscal year ending March 31, 2005. Forward-Looking Statements This release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We use words such as "anticipate," "believe," "expect," "future," "intend," "plan," and similar expressions to identify forward-looking statements. Forward-looking statements include, without limitation, our ability to increase income streams, to grow revenue and earnings, and to obtain additional Indian gaming and other projects. These statements are only predictions and are subject to certain risks, uncertainties and assumptions, which are identified and described in the Company's public filings with the Securities and Exchange Commission. About Nevada Gold & Casinos Nevada Gold & Casinos, Inc. of Houston, Texas is a developer of gaming properties and has real estate interests in Colorado, California, and Nevada. UWN owns a 43% interest in The Isle of Capri-Black Hawk LLC, which owns Isle of Capri Casino, a 237-room hotel/casino and Colorado Central Station Casino (both located in Black Hawk, Colorado, about 35 miles west of Denver) and Colorado Grande Casino, located in Cripple Creek, Colorado. The LLC is a joint venture with Isle of Capri Casinos, Inc. (NASDAQ:ISLE). UWN has 69% ownership of Dry Creek Casino, LLC, which is assisting the Dry Creek Rancheria Band of Pomo Indians with their River Rock Casino, Alexander Valley, Sonoma County, California (about 75 miles north of San Francisco in the California wine country). UWN has 51% ownership of Route 66 Casinos, LLC, which has the right to lease gaming equipment to the Pueblo of Laguna in their Route 66 Casino 11 miles west of Albuquerque, N.M., which opened in September 2003. Nevada Gold Tulsa, Inc., a wholly-owned subsidiary, has entered into a contract to develop and manage a casino for the Muscogee (Creek) Nation in Tulsa, Oklahoma. Also, Gold River, LLC, a wholly-owned subsidiary of UWN, has entered into a development agreement for a gaming resort in Pauma Valley, California for the La Jolla Band of Luiseno Indians. The management agreement for La Jolla is currently being finalized and is expected to be completed in the near future. For more information, visit http://www.nevadagold.com/ . CONTACT: Nevada Gold & Casinos, Inc., Houston H. Thomas Winn or Christopher Domijan, 713-621-2245 or Integrated Corporate Relations Don Duffy 203-222-9013 FIRST AND FINAL ADD -- TABLES -- TO FOLLOW DATASOURCE: Nevada Gold & Casinos, Inc. CONTACT: H. Thomas Winn or Christopher Domijan, both of Nevada Gold & Casinos, Inc., +1-713-621-2245; or Don Duffy of Integrated Corporate Relations, +1-203-222-9013 Web site: http://www.nevadagold.com/

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