Dover Downs Reports Results

27 Apr 2006

DOVER, Delaware – (PRESS RELEASE) -- Dover Downs Gaming & Entertainment, Inc. (NYSE: DDE) today reported results for the three months ended March 31, 2006.

Net earnings improved 24.2% to $6,185,000 compared with $4,979,000 for the first quarter of 2005.

Net earnings per diluted share were $.28 compared with $.21 per diluted share in 2005, a 33.3% improvement as a result of the aforementioned increase in net earnings and the impact of the shares repurchased in a self tender completed during the quarter.

The Company's revenues increased to $59,272,000 compared with $52,091,000 for the first quarter of 2005. Gaming revenues, which include video lottery win and harness racing commissions, increased 13.1% or $6,442,000 compared with the first quarter of 2005, primarily as a result of increased video lottery win.

Slot win improved by 12.7% during the quarter as compared to the comparable period in the prior year. Favorable winter weather and continued improvements in marketing programs were the primary reasons for the increase. Occupancy levels in the Dover Downs Hotel remained strong, averaging more than 96% for the first quarter.

Denis McGlynn, President and CEO of Dover Downs Gaming & Entertainment, Inc., stated, "We are very happy with our ability to continue to grow our business on all fronts and look forward to the benefits of our recently announced facility and operational expansions."

The Company has recently announced an approximate $52 million expansion plan that will more than double the number of hotel rooms and add a luxurious 8,000-square-foot spa to the Dover Downs Hotel & Casino. By the fall of 2007, the Company expects to have added 268 luxury rooms to the Dover Downs Hotel & Casino, bringing the total number of rooms to 500. Eleven of these rooms will be specially designed spa suites featuring either hot tubs, pool tables or fireplaces plus wet bars and plasma screen TVs.

Pursuant to recently approved legislation allowing the Company to expand its operating hours, add additional slot machines and provide free promotional play, the Company is in the process of renovating a portion of the harness racing grandstands to accommodate 200 additional slot machines. The new casino space is expected to open in July 2006.

As previously announced, the Company completed a self tender of approximately 10% of its outstanding shares during the quarter at a price of $14.50.

The Company announced yesterday that its Board of Directors has approved a three-for-two split of both classes of the Company's outstanding common stock. The split will be effected by issuing one additional share of common stock for every two shares of common stock held. The additional shares of common stock will be distributed on June 15, 2006 to holders of record at the close of business on May 10, 2006. No fractional shares will be issued, but will be paid to shareholders in cash.

"The Board approval of this stock split is a response to our strong earnings and stock price performance," stated Denis McGlynn. "It is our belief that this will expand our shareholder base and improve the liquidity of our common stock."

The Company also announced that its Board of Directors declared a regular quarterly dividend of $.06 per share on the shares outstanding prior to the stock split. The dividend is payable on June 10, 2006 to shareholders of record at the close of business on May 10, 2006.

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	Dover Downs Reports Results 27 Apr 2006 <a href='https://ad.casinocity.com/adclick.php?n=a21efcd1'><img src='https://ad.casinocity.com/adview.php?what=-site:vendors/width:250/RON&n=a21efcd1' border='0' alt='' /></a> DOVER, Delaware – (PRESS RELEASE) -- Dover Downs Gaming & Entertainment, Inc. (NYSE: DDE) today reported results for the three months ended March 31, 2006. Net earnings improved 24.2% to $6,185,000 compared with $4,979,000 for the first quarter of 2005. Net earnings per diluted share were $.28 compared with $.21 per diluted share in 2005, a 33.3% improvement as a result of the aforementioned increase in net earnings and the impact of the shares repurchased in a self tender completed during the quarter. The Company's revenues increased to $59,272,000 compared with $52,091,000 for the first quarter of 2005. Gaming revenues, which include video lottery win and harness racing commissions, increased 13.1% or $6,442,000 compared with the first quarter of 2005, primarily as a result of increased video lottery win. Slot win improved by 12.7% during the quarter as compared to the comparable period in the prior year. Favorable winter weather and continued improvements in marketing programs were the primary reasons for the increase. Occupancy levels in the Dover Downs Hotel remained strong, averaging more than 96% for the first quarter. Denis McGlynn, President and CEO of Dover Downs Gaming & Entertainment, Inc., stated, "We are very happy with our ability to continue to grow our business on all fronts and look forward to the benefits of our recently announced facility and operational expansions." The Company has recently announced an approximate $52 million expansion plan that will more than double the number of hotel rooms and add a luxurious 8,000-square-foot spa to the Dover Downs Hotel & Casino. By the fall of 2007, the Company expects to have added 268 luxury rooms to the Dover Downs Hotel & Casino, bringing the total number of rooms to 500. Eleven of these rooms will be specially designed spa suites featuring either hot tubs, pool tables or fireplaces plus wet bars and plasma screen TVs. Pursuant to recently approved legislation allowing the Company to expand its operating hours, add additional slot machines and provide free promotional play, the Company is in the process of renovating a portion of the harness racing grandstands to accommodate 200 additional slot machines. The new casino space is expected to open in July 2006. As previously announced, the Company completed a self tender of approximately 10% of its outstanding shares during the quarter at a price of $14.50. The Company announced yesterday that its Board of Directors has approved a three-for-two split of both classes of the Company's outstanding common stock. The split will be effected by issuing one additional share of common stock for every two shares of common stock held. The additional shares of common stock will be distributed on June 15, 2006 to holders of record at the close of business on May 10, 2006. No fractional shares will be issued, but will be paid to shareholders in cash. "The Board approval of this stock split is a response to our strong earnings and stock price performance," stated Denis McGlynn. "It is our belief that this will expand our shareholder base and improve the liquidity of our common stock." The Company also announced that its Board of Directors declared a regular quarterly dividend of $.06 per share on the shares outstanding prior to the stock split. The dividend is payable on June 10, 2006 to shareholders of record at the close of business on May 10, 2006.