Monarch Casino & Resort, Inc. (Nasdaq: MCRI) (the "Company") today announced a record first quarter ended March 31, 2005.

Despite severe adverse weather conditions and a one-time gaming development charge in the amount of approximately $204,000, the Company achieved net income of $3.9 million, or $0.20 per diluted share, for the first quarter ended March 31, 2005, a 39.7% improvement from the record $2.8 million net income, or $0.15 per diluted share, set during the same period a year earlier. The first quarter 2005 earnings per diluted share is in line with consensus analysts’ estimates of $0.20. Earnings per share for the 2004 first quarter has been adjusted to give consideration to a 2 for 1 common stock split effective March 31, 2005. Record revenues across all the Company’s revenue centers contributed to a new first quarter record net revenues of $31.6 million, which was 3.5% better than the previous record of $30.5 million set in 2004. The increase in revenues combined with effective cost controls led to across the board margin improvements during the period. Income from operations increased 30.5% year over year and, excluding depreciation and amortization, the Company achieved 44.5% flow through of incremental net revenue to income from operations. The Company reported record first quarter EBITDA (1) of $8.2 million, a 6.2% improvement over its previous first quarter best EBITDA (1) of $7.7 million achieved in 2004, and slightly better than the $8.0 million average estimated by analysts.

"Our business fundamentals at the Atlantis Casino Resort remain strong despite the challenging weather experienced during the first quarter of 2005 and the absence of a bowling tournament this year," said John Farahi, the Company’s CEO and Co-Chairman. "Our management team remains focused on cost control while continuing to aggressively pursue new as well as repeat business." he continued.

During the first quarter of 2005, the Company expensed approximately $204,000 of previously deferred gaming development costs related to a proposed South Reno project and does not expect any significant future costs related to this project. On April 13, 2005 the Reno City Council denied the Company’s application for a master plan and zoning change on a parcel of land in South Reno for possible development of a second hotel casino.

Also during the first quarter of 2005, the Company used its free cash flow to continue paying down its outstanding bank debt to $23.1 million from $32.4 million at 2004 year end and $46.4 at March 31, 2004.

Mr. Farahi further commented that "The Atlantis’ location in South Reno, amidst the growing local population and close proximity to the Reno-Sparks Convention Center, continues to provide an advantage in a challenging market. We are also doing our part in aggressively updating and renovating our facilities, products and services in order to maintain our status as one of Reno’s top resort attractions for locals, visitors and conventioneers."