RENO, Nev., July 23 /EMWNews/ -- Monarch Casino & Resort,

Inc. (Nasdaq: MCRI) (the "Company"), owner of the Atlantis Casino Resort

Spa (the "Atlantis") in Reno, Nevada, today announced results for the

quarter ended June 30, 2008 and announced the opening of its $50 million

expansion project.



    The Company reported net revenue of $35.3 million, a 15.1% decline from

the $41.6 million reported for the comparable quarter in 2007. The Company

announced second quarter 2008 income from operations of $4.4 million,

EBITDA(1) of $6.3 million and diluted EPS of 16 cents which represent

decreases of 56.2%, 48.0% and 55.6%, respectively, when compared to the

prior year's second quarter. These decreases were driven primarily by the

decrease in net revenue. Selling, general and administrative expense of

$12.9 million for the quarter was nearly flat compared with the $12.8

million reported in the second quarter of 2007.



    Through June 30, 2008, the Company drew $34 million from its $50

million credit facility to pay for the previously announced share

repurchases and to fund ongoing capital projects. As a result of this

borrowing activity, the Company incurred interest expense of $131 thousand

during the quarter, an increase of $128 thousand when compared to the same

quarter of the prior year. The Company used its invested cash reserves

during the quarter for completion of its expansion project and share

repurchases resulting in a decrease in interest income from the $474

thousand reported in the second quarter of 2007 to $46 thousand in the

current quarter.



    As of the end of the current quarter, the Company has completed the

repurchase of 3 million shares of the Company's common stock which

fulfilled the previously announced share repurchase authorizations by the

Company's board of directors.



    The Company announced that its $50 million, 116,000 square feet,

expansion project is now open with the exception of the expanded and

upgraded spa facilities which are expected to open in the early part of the

fourth quarter of 2008. The casino floor has been expanded by over 10,000

square feet, or approximately 20%, to include a redesigned, significantly

upgraded and expanded race and sports book of approximately 4,000 square

feet, an enlarged and upgraded poker room and other general gaming space.

The first floor expansion also includes the "Manhattan deli", a New York

deli-style restaurant. The second floor ballroom and convention space has

been expanded with the addition of approximately 27,000 square feet of new

space that is equipped with state-of-the art audio-visual technology. The

Company plans to upgrade the pre-expansion areas of the Atlantis over the

next several quarters to be consistent with the upgraded standards of the

new facilities.



    The Company's previously announced $12.5 million Atlantis Convention

Center Skybridge project, which will provide guests with a convenient,

traffic-free stroll between the Atlantis and the 500,000 square-foot Reno-

Sparks Convention Center in an enclosed, climate controlled environment, is

on track to be completed late in the fourth quarter of 2008.



    Monarch's CEO and Co-Chairman John Farahi commented on the Company's

performance: "This quarter's results reflect the effects of the challenging

operating environment that we previously described in press releases over

the last several quarters. As in many other areas around the country, the

national economic slowdown remains a significant challenge for our region.

Consistent with the last several quarters, other factors negatively

impacting our results include aggressive marketing and discount programs by

our competitors, disruption from construction related to our completed

expansion project and legal expenses associated with the ongoing and

previously disclosed Kerzner litigation. We anticipate that downward

pressure on profits will persist as long as we continue to experience these

adverse conditions."



    Mr. Farahi added, "While the recent economic climate is challenging, we

are committed to, and excited about, the improvements we have made, and

that are ongoing, to our Atlantis facility. The recently opened expansion

sets a new standard for us in terms of design and functionality. It allows

us to deliver a superior experience to guests who come to the Atlantis to

enjoy gaming, conventions, meetings and other social events. We plan to

remodel the pre-expansion portion of our facility over the next several

quarters to update its look and feel while we complete the skybridge

project which will establish the Atlantis as the only property to be

physically connected to the Reno- Sparks Convention Center."



    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 this parcel for 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 61,000 square feet of high-energy casino space with

38 table games and approximately 1,500 slot and video poker machines, a

race and sports book, Keno and a poker room, and offers a variety of dining

choices in the form of ten 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, (ii) economic and market conditions, (iii)

ongoing expansion and upgrade plans, and (iv) the liquidity requirements of

the Company. Actual results and future events and conditions 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.






    For additional information visit Monarch's web site at 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.





                        Monarch Casino & Resort, Inc.

                 Condensed Consolidated Statements of Income



                               Three Months Ended       Six Months Ended

                                     June 30,                June 30,

                                2008        2007        2008         2007

                             UNAUDITED   UNAUDITED   UNAUDITED    UNAUDITED

    Revenues

     Casino                $25,672,907 $29,277,718  $49,428,857  $54,575,990

     Food and beverage       9,547,395  10,568,173   19,308,615   21,072,388

     Hotel                   5,545,006   7,027,156   11,375,701   13,855,123

     Other                   1,185,503   1,285,828    2,417,572    2,474,451

      Gross revenues        41,950,811  48,158,875   82,530,745   91,977,952

    Less promotional

     allowances             (6,607,046) (6,597,555) (12,913,587) (12,635,041)

      Net revenues          35,343,765  41,561,320   69,617,158   79,342,911

    Operating expenses

     Casino                  9,266,916   9,268,084   18,013,416   17,737,421

     Food and beverage       4,606,282   4,866,969    9,295,647    9,835,686

     Hotel                   1,967,720   2,111,765    4,073,093    4,255,105

     Other                     312,997     377,437      659,651      741,057

     Selling, general and

      administrative        12,877,513  12,792,008   25,981,613   24,322,811

     Depreciation and

      amortization           1,893,237   2,064,970    3,899,794    4,140,416

      Total operating

       expenses             30,924,665  31,481,233   61,923,214   61,032,496

      Income from operations 4,419,100  10,080,087    7,693,944   18,310,415

    Other (expense) income

     Interest income            46,238     473,537      297,582      817,421

     Interest expense         (131,335)     (3,174)    (135,492)    (152,274)

      Total other (expense)

       income                  (85,097)    470,363      162,090      665,147

      Income before income

       taxes                 4,334,003  10,550,450    7,856,034   18,975,562

    Provision for income

     taxes                  (1,531,100) (3,650,000)  (2,751,100)  (6,580,000)

      Net income            $2,802,903  $6,900,450   $5,104,934  $12,395,562



    Earnings per share of

     common stock

     Net income

      Basic                      $0.16       $0.36        $0.29        $0.65

      Diluted                    $0.16       $0.36        $0.29        $0.64



    Weighted average number

     of common shares and

     potential common

     shares outstanding

      Basic                 17,189,200  19,091,756   17,802,518   19,081,173

      Diluted               17,253,109  19,366,442   17,899,384   19,345,213





                        Monarch Casino & Resort, Inc.

                    Condensed Consolidated Balance Sheets



                                             June 30,            December 31,

                                               2008                 2007

                  ASSETS                    (UNAUDITED)

    Current assets

     Cash and cash equivalents              $11,672,748          $38,835,820

     Receivables, net                         3,679,824            4,134,099

     Federal income tax refund receivable             -              998,123

     Inventories                              1,471,347            1,496,046

     Prepaid expenses                         3,040,123            3,144,374

     Deferred income taxes                      582,407            1,084,284

      Total current assets                   20,446,449           49,692,746

    Property and equipment

     Land                                    12,162,522           10,339,530

     Land improvements                        3,511,484            3,166,107

     Buildings                               80,655,538           78,955,538

     Building improvements                   10,435,062           10,435,062

     Furniture and equipment                 73,328,364           72,511,165

     Leasehold improvements                   1,346,965            1,346,965

                                            181,439,935          176,754,367

     Less accumulated depreciation and

      amortization                          (96,011,025)         (92,215,149)

                                             85,428,910           84,539,218

    Construction in progress                 53,494,393           17,236,062

      Net property and equipment            138,923,303          101,775,280

    Other assets, net                         2,817,842            2,817,842

     Total assets                          $162,187,594         $154,285,868



        LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities

     Current maturities of long-term debt   $34,000,000                   $-

     Accounts payable                        12,788,488           10,840,318

     Construction payable                     3,330,226            1,971,022

     Accrued expenses                         9,193,030            9,230,157

     Federal income taxes payable                51,100                    -

      Total current liabilities              59,362,844           22,041,497

    Deferred income taxes                     2,825,433            2,825,433

      Total Liabilities                      62,188,277           24,866,930

    Stockholders' equity

     Preferred stock, $.01 par value,

      10,000,000 shares authorized; none

      issued                                          -                    -

     Common stock, $.01 par value,

      30,000,000 shares authorized;

      19,096,300 shares issued;

      16,122,048 outstanding at 6/30/08

      18,566,540 outstanding at 12/31/07        190,963              190,963

     Additional paid-in capital              26,891,871           25,741,972

     Treasury stock,

      2,974,252 shares at 6/30/08

      529,760 shares at 12/31/07, at cost   (48,943,359)         (13,268,905)

     Retained earnings                      121,859,842          116,754,908

      Total stockholders' equity             99,999,317          129,418,938

     Total liabilities and stockholder's

      equity                               $162,187,594         $154,285,868





                        Monarch Casino & Resort, Inc.

                  Reconciliation of Net Income to EBITDA (1)



                            Three Months Ended         Six Months Ended

                                 June 30,                    June 30,

                            2008          2007          2008          2007

                         UNAUDITED     UNAUDITED     UNAUDITED     UNAUDITED

    Net income          $2,802,903    $6,900,450    $5,104,934   $12,395,562

    Adjustments

      Provision for

       income taxes      1,531,100     3,650,000     2,751,100     6,580,000

      Interest expense     131,335         3,174       135,492       152,274

      Depreciation &

       amortization      1,893,237     2,064,970     3,899,794     4,140,416

      Interest income      (46,238)     (473,537)     (297,582)     (817,421)

    EBITDA (1)

     (unaudited)        $6,312,337   $12,145,057   $11,593,738   $22,450,831



    (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.