Hard Rock Reports Loss Decreased

11 Mar 2004

LAS VEGAS – (Press Release) -- Hard Rock Hotel, Inc. ("Hard Rock"), which owns and operates the Hard Rock Hotel & Casino in Las Vegas, Nevada, today reported 4th quarter net revenues increased $3.4 million, or 12%, to $32.4 million compared to $29.0 million in the year-earlier three-month period. The Company also announced a $3.9 million, or 122%, increase in 4th quarter earnings before interest, taxes, depreciation, amortization, loss on development project abandonment and loss on early extinguishment of debt ("Adjusted EBITDA") (1), to a record $7.2 million compared to $3.3 million in the comparable prior year period. Net loss decreased $4.2 million, or 91%, to $0.4 million compared to $4.6 million in the 4th quarter of 2002.

Quarterly net revenues improved due primarily to increased casino and lodging revenues. The Company's 4th quarter Adjusted EBITDA increased primarily due to these increased revenues and an increased operating profit margin in the casino. Casino operating profit margin increased primarily due to the table games hold percentage increasing 4.3 percentage points to 14% compared to 9.7% in the year-earlier period. In addition to these improvements, quarterly net loss decreased due to a $1.7 million loss on development project abandonment recorded during the 4th quarter of 2002.

The Company's 2003 net revenues increased $10.4 million, or 8%, to $138.5 million compared to $128.1 million in the prior year. Annual Adjusted EBITDA increased $5.8 million, or 20%, to a record $34.6 million compared to $28.8 million in 2002. Net income for 2003 decreased to $2.1 million in 2003 compared to $2.5 million in the prior year.

Annual net revenues increased due primarily to improvements in casino, lodging and food and beverage revenues. Annual Adjusted EBITDA improved primarily due to these increased revenues and an increased operating profit margin in the casino. Casino operating profit margin increased primarily due to increased slot and race and sports handle and hold percentages. Net income decreased in 2003 as the improvement in Adjusted EBITDA and the loss on development project abandonment recorded in 2002 were offset by increased interest expense and a $4.3 million loss on early extinguishment of debt in 2003. Interest expense increased due to debt issued to pay $15.0 million of accrued dividends on the Company's preferred stock and interest on the $50.0 million of subordinated debt issued in exchange for the remaining preferred stock during May 2003. Loss on early extinguishments of debt is related to a $3.0 million premium paid to the holders of the Company's 9 1/4% Notes due 2005 which were tendered or called during the second quarter of 2003 and due to a $1.3 million write-off of unamortized deferred debt issuance costs related to the tendered and called notes.

Peter Morton, Hard Rock's Chairman of the Board and Chief Executive Officer, commenting on the quarterly and annual results stated, "Our 4th quarter and annual Adjusted EBITDA performance set new records for the Company. It was achieved through the continuation of several programs designed to build revenues while closely monitoring costs. Our employees bring a high level of energy and service to our customers. I feel that the Company has never been in a better position financially and I hope for continuing growth in 2004."

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	Hard Rock Reports Loss Decreased 11 Mar 2004 LAS VEGAS – (Press Release) -- Hard Rock Hotel, Inc. ("Hard Rock"), which owns and operates the Hard Rock Hotel & Casino in Las Vegas, Nevada, today reported 4th quarter net revenues increased $3.4 million, or 12%, to $32.4 million compared to $29.0 million in the year-earlier three-month period. The Company also announced a $3.9 million, or 122%, increase in 4th quarter earnings before interest, taxes, depreciation, amortization, loss on development project abandonment and loss on early extinguishment of debt ("Adjusted EBITDA") (1), to a record $7.2 million compared to $3.3 million in the comparable prior year period. Net loss decreased $4.2 million, or 91%, to $0.4 million compared to $4.6 million in the 4th quarter of 2002. Quarterly net revenues improved due primarily to increased casino and lodging revenues. The Company's 4th quarter Adjusted EBITDA increased primarily due to these increased revenues and an increased operating profit margin in the casino. Casino operating profit margin increased primarily due to the table games hold percentage increasing 4.3 percentage points to 14% compared to 9.7% in the year-earlier period. In addition to these improvements, quarterly net loss decreased due to a $1.7 million loss on development project abandonment recorded during the 4th quarter of 2002. The Company's 2003 net revenues increased $10.4 million, or 8%, to $138.5 million compared to $128.1 million in the prior year. Annual Adjusted EBITDA increased $5.8 million, or 20%, to a record $34.6 million compared to $28.8 million in 2002. Net income for 2003 decreased to $2.1 million in 2003 compared to $2.5 million in the prior year. Annual net revenues increased due primarily to improvements in casino, lodging and food and beverage revenues. Annual Adjusted EBITDA improved primarily due to these increased revenues and an increased operating profit margin in the casino. Casino operating profit margin increased primarily due to increased slot and race and sports handle and hold percentages. Net income decreased in 2003 as the improvement in Adjusted EBITDA and the loss on development project abandonment recorded in 2002 were offset by increased interest expense and a $4.3 million loss on early extinguishment of debt in 2003. Interest expense increased due to debt issued to pay $15.0 million of accrued dividends on the Company's preferred stock and interest on the $50.0 million of subordinated debt issued in exchange for the remaining preferred stock during May 2003. Loss on early extinguishments of debt is related to a $3.0 million premium paid to the holders of the Company's 9 1/4% Notes due 2005 which were tendered or called during the second quarter of 2003 and due to a $1.3 million write-off of unamortized deferred debt issuance costs related to the tendered and called notes. Peter Morton, Hard Rock's Chairman of the Board and Chief Executive Officer, commenting on the quarterly and annual results stated, "Our 4th quarter and annual Adjusted EBITDA performance set new records for the Company. It was achieved through the continuation of several programs designed to build revenues while closely monitoring costs. Our employees bring a high level of energy and service to our customers. I feel that the Company has never been in a better position financially and I hope for continuing growth in 2004."