The Company reported record quarterly net revenue of $43.6 million, a 4.5% increase over the third quarter of 2006, driven primarily by quarterly records for gross revenue from its casino and food and beverage operations of $29.9 million and $11.0 million, respectively. Gross revenue from the hotel operation of $8.0 million was slightly lower than prior year’s third quarter all-time record of $8.1 million.

The Company announced quarterly income from operations of $11.7 million, EBITDA(1) of $13.7 million and diluted EPS of 41 cents, each of which was also the highest ever reported for any quarter. The Company’s operating margin of 26.9% was consistent with the 26.8% operating margin reported for the third quarter of the prior year.

The Company remained debt-free during the quarter, funded approximately $11.0 million of expenditures related to its ongoing expansion and the remodeling of its existing facilities, and increased its cash balance to $52.9 million, an increase of $15.9 million from the $37.0 million balance at December 31, 2006. When asked about the Company’s performance, Monarch’s CEO and Co-Chairman John Farahi commented: “We delivered another record quarter despite softness in the Reno gaming market and disruption from the construction of our ongoing expansion project. We are very proud of our team for delivering these results in the face of this challenging market and operating environment.” With respect to the Company’s expansion project, Mr. Farahi added, “The expansion we began constructing in the second quarter of this year is progressing according to plan and remains on track for completion in the second quarter of 2008.”

Monarch Casino & Resort, Inc., through its wholly-owned subsidiary, owns and operates the tropically-themed Atlantis Casino Resort Spa in Reno, Nevada. The Atlantis is the closest hotel-casino to, and is directly across the street from, the Reno-Sparks Convention Center. The Atlantis features a Sky Terrace, a unique structure rising approximately 55 feet above street level and spanning 160 feet across Virginia Street with no intermediate support pillars. The Sky Terrace connects the Atlantis to a 16-acre parcel of land owned by the Company that is compliant with all casino zoning requirements and is suitable and available for future expansion and growth. Currently, the Company uses the land as additional paved parking for the Atlantis. The existing Atlantis site offers almost 1,000 guest rooms in three contiguous high-rise hotel towers and a motor lodge. The Atlantis features approximately 51,000 square feet of high-energy casino space with 38 table games and approximately 1,450 slot and video poker machines, a sports book, Keno and a poker room, and offers a variety of dining choices in the form of nine high-quality food outlets. This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 which are subject to change, including, but not limited to, comments relating to (i) future operating performance and (ii) future expansion plans and (iii) construction progress disruption and completion. The 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 is included in the Company’s Securities and Exchange Commission filings, which are available on the Company's web site.

Contacts:
Ron Rowan, CFO
(775) 825-4700 or rrowan@monarchcasino.com

John Farahi, CEO
(775) 825-4700 or JohnFarahi@monarchcasino.com

(1) "EBITDA" consists of net income plus provision for income taxes, interest expense, depreciation and amortization less interest income. EBITDA should not be construed as an alternative to operating income (as determined in accordance with generally accepted accounting principles) as an indicator of the Company's operating performance, as an alternative to cash flows from operating activities (as determined in accordance with generally accepted accounting principles) or as a measure of liquidity. This item enables comparison of the Company's performance with the performance of other companies that report EBITDA, although some companies do not calculate this measure in the same manner and therefore, the measure as presented may not be comparable to similarly titled measures presented by other companies.