[bernard]

* Both the Isle-Black Hawk's and the Colorado Central Station-Black Hawk's casino expansions opened this quarter marking a milestone in the $94.0 million construction and renovation project currently underway. In mid-June, additional parking, a new Kitt's Kitchen restaurant and the sky bridges connecting the Isle-Black Hawk and the Colorado Central Station-Black Hawk also were completed.

* The company continues to deploy the IGT Advantage(TM) Casino System to replace the existing systems in six of its casinos. The company began the rollout of this system at the Colorado Central Station-Black Hawk, the Isle- Biloxi and the Isle-Vicksburg. Upon completion at these casinos, the company will rollout the system at the Isle-Lula, the Isle-Natchez and one other location yet to be determined. After implementation, these properties will feature the NexGen(TM) Interactive Display, supporting loyalty-building Bonusing(TM) tools, which will allow the company to enhance its uniquely branded marketing programs.

In Colorado, the Isle of Capri's two Colorado casino operations contributed 13% of its net revenues. Net revenues and Adjusted EBITDA(1) for these properties increased despite the continued construction during the quarter. The new 162- room Colorado Central Station hotel is currently ahead of schedule and expected to be completed by end of calendar year. Construction has now resumed on the extension of Main Street to Colorado Route 119, which was temporarily delayed due to engineering problems. Completion is expected in spring 2006. The sale of Colorado Grande was completed on April 25, 2005 and fiscal 2004 and 2005 results have been reclassified to reflect the Colorado Grande-Cripple Creek as discontinued operations.

On April 22, 2005, the Isle-Black Hawk joint venture approved an agreement to sell the Colorado Grande-Cripple Creek for $6.5 million. During the fourth fiscal quarter of 2005, the company recorded a valuation charge totaling $4.0 million related to the impairment of goodwill for the Colorado Grande-Cripple Creek property representing the difference between the Colorado Grande-Cripple Creek's carrying value of $9.8 million and estimated fair value, less estimated costs to sell, of $5.8 million. On April 25, 2005, the sale was consummated.