Station Casinos Announces Record First Quarter Results and Declares Dividend

Highlights include:

-- Record first quarter EBITDA (1) of $132.6 million, an increase of 10% over the prior year's first quarter.

-- Adjusted for non-recurring items and development expense, diluted earnings per share ("EPS") of $0.78 compared to $0.70 in the prior year's first quarter, an increase of 11%.

-- Revenues from its Major Las Vegas Operations, including Green Valley Ranch, increased 8% from the prior year's first quarter.

-- EBITDA margins for its Major Las Vegas Operations, including Green Valley Ranch, increased to 43.2% from 42.9% in the prior year's first quarter.

-- The successful opening of Red Rock Casino Resort Spa ("Red Rock") on April 18, 2006.

-- Repurchasing 7.1 million shares of the Company's common stock since the beginning of the year through a combination of open market purchases and an accelerated stock buyback program.

-- Declaring a quarterly cash dividend of $0.25 per share payable on June 2, 2006 to shareholders of record on May 12, 2006.

Results of Operations

The Company's net revenues for the first quarter ended March 31,2006 were approximately $292.5 million, an increase of 7% compared tothe prior year's first quarter. The Company reported EBITDA for thequarter of $132.6 million, an increase of 10% compared to the prioryear's first quarter. For the first quarter, Adjusted Earnings (2)applicable to common stock were $51.5 million, or $0.78 per dilutedshare, an increase of 11% over the prior year's $0.70 per dilutedshare on a comparable basis. This marks the seventeenth consecutivequarter of year-over-year growth of Adjusted EBITDA, EBITDA margin andEPS.

During the first quarter, the Company incurred preopening costsrelated to projects under development of $14.1 million, $0.5 millionin costs to terminate certain leases, a $0.8 million gain on thedisposition of certain assets and $2.1 million in costs to develop newgaming opportunities, primarily related to Native American gaming.Including these items, the Company reported net income of $41.1million and diluted earnings applicable to common stock of $0.62 pershare.

The Company's earnings from its Green Valley Ranch joint venturefor the first quarter were $13.5 million, which represents acombination of the Company's management fee plus 50% of Green ValleyRanch's operating income. For the quarter, Green Valley Ranchgenerated EBITDA before management fees of $30.1 million, an 11%increase compared to the prior year's first quarter. "The results atGreen Valley Ranch are very impressive considering we continue toexperience significant construction disruption related to the PhaseIII expansion of that property, as well as new supply in the market,"said Lorenzo J. Fertitta, vice chairman and president.

Las Vegas Market Results

For the quarter, net revenues from the Major Las Vegas Operations,including Green Valley Ranch, increased to $321.8 million, an 8%increase compared to the prior year's quarter, while EBITDA from thoseoperations increased 9% to $139.1 million. "Revenue growth exceededour guidance for the quarter as the key metrics in our businessremained strong. We look forward to the end of the third quarter whenconstruction disruption at our properties dissipates and the newdevelopment starts to ramp up," said Lorenzo Fertitta.

EBITDA and Adjusted Earnings are not generally accepted accountingprinciples ("GAAP") measurements and are presented solely as asupplemental disclosure because the Company believes that they arewidely used measures of operating performance in the gaming industryand as a principal basis for valuation of gaming companies. EBITDA andAdjusted Earnings are further defined in footnotes 1 and 2,respectively.

Balance Sheet Items and Capital Expenditures

Long-term debt was $2.39 billion as of March 31, 2006. Totalcapital expenditures were $271.1 million for the first quarter.Expansion and project capital expenditures included $172.1 million forRed Rock, $17.0 million for the expansion of Santa Fe Station, $10.5million for the expansion of Fiesta Henderson and $26.9 million forthe purchase of land. In addition, during the first quarter theCompany purchased approximately 3.9 million shares of its common stockfor approximately $264.8 million. As of March 31, 2006, the Company'sdebt to cash flow ratio as defined in its bank credit facility was 4.9to 1.

Dividend

The Company's Board of Directors has declared a quarterly cashdividend of $0.25 per share. The dividend is payable on June 2, 2006to shareholders of record on May 12, 2006.

Stock Repurchases

Since the beginning of the year, the Company has repurchased 7.1million shares of its common stock through a combination of openmarket purchases and an accelerated stock buyback ("ASB") program.Pursuant to the terms of the ASB program, the Company could alsoreceive up to an additional 367,539 shares from a third party based onthe volume weighted average price of the stock during the term of suchprogram and the collar provisions setting minimum and maximum pricesfor the repurchase of such shares. The total cost of the sharerepurchases completed in 2006 to date is approximately $537 million.

Fiscal 2006 and 2007 Guidance

For the second quarter of 2006, the Company expects EBITDA ofapproximately $131 million to $136 million and EPS of $0.60 to $0.65,excluding development expense and other non-recurring items. Theguidance for the second quarter assumes 73 days of operations for RedRock and approximately $7 million of construction disruption relatingto the Santa Fe Station, Fiesta Henderson and Green Valley Ranchmaster-planned expansions. Including the impact of the constructiondisruption, the projected revenue growth for the second quarter is 30%to 32%. For the remainder of 2006, the Company expects EBITDA ofapproximately $135 million to $140 million for the third quarter and$151 million to $156 million for the fourth quarter. The guidanceassumes $2 million of construction disruption in the third quarter andnone in the fourth quarter. This would result in EPS of $0.53 to $0.59for the third quarter and $0.66 to $0.71 for the fourth quarterassuming 62 million fully diluted shares outstanding. For the fullyear 2006, the Company expects EBITDA of approximately $550 million to$565 million, excluding development expense and non-recurring itemsand Adjusted Earnings applicable to common stock of approximately$2.57 to $2.71, assuming 63 million fully diluted shares. Thisguidance assumes approximately $16 million of construction disruptionrelating to the Santa Fe Station, Fiesta Henderson and Green ValleyRanch master-planned expansions. It also assumes the completion ofmost of the components of the Fiesta Henderson expansion in the thirdquarter of 2006, the completion of the Santa Fe Station expansion inphases beginning in the third quarter of 2006 through the fourthquarter of 2006 and the completion of the Green Valley Ranch expansionfrom the fourth quarter of 2006 through early 2007. The full year 2006guidance assumes revenue growth in the Major Las Vegas Operations(excluding Green Valley Ranch) of 24% to 27% over the prior year andan effective tax rate of 37.2%.

The Company is reiterating EBITDA guidance for fiscal 2007 ofapproximately $630 million to $670 million and updating EPS guidanceto $2.65 to $3.05. This guidance assumes that Phase II of Red Rockopens in early 2007, and further assumes an effective tax rate of37.2% and 63 million diluted shares outstanding.

Conference Call Information

The Company will host a conference call today, Thursday, May 4, at12:00 p.m. (Eastern Time) to discuss its first quarter 2006 financialresults and provide guidance for the remainder of 2006 and 2007. Thoseinterested in participating in the call should dial (866) 633-6299 or(706) 679-5908 for international callers, approximately 10 minutesbefore the call start time. A live audio webcast of the call, as wellas supplemental tables and charts, will also be available at theCompany's website, www.stationcasinos.com (3). A replay of the callwill be available from 3:00 p.m. (Eastern Time) on May 4, 2006, until3:00 p.m. (Eastern Time) on May 12, 2006 at (800) 642-1687. Thereservation number is 7579378.

Company Information and Forward Looking Statements

Station Casinos, Inc. is the leading provider of gaming andentertainment to the residents of Las Vegas, Nevada. Station'sproperties are regional entertainment destinations and include variousamenities, including numerous restaurants, entertainment venues, movietheaters, bowling and convention/banquet space, as well as traditionalcasino gaming offerings such as video poker, slot machines, tablegames, bingo and race and sports wagering. Station owns and operatesRed Rock Casino Resort Spa, Palace Station Hotel & Casino, BoulderStation Hotel & Casino, Santa Fe Station Hotel & Casino, WildfireCasino and Wild Wild West Gambling Hall & Hotel in Las Vegas, Nevada,Texas Station Gambling Hall & Hotel and Fiesta Rancho Casino Hotel inNorth Las Vegas, Nevada, and Sunset Station Hotel & Casino, FiestaHenderson Casino Hotel, Magic Star Casino and Gold Rush Casino inHenderson, Nevada. Station also owns a 50% interest in Green ValleyRanch Station Casino, Barley's Casino & Brewing Company and The Greensin Henderson, Nevada and a 6.7% interest in the Palms Casino Resort inLas Vegas, Nevada. In addition, Station manages Thunder Valley Casinonear Sacramento, California on behalf of the United Auburn IndianCommunity.

This press release contains certain forward-looking statementswith respect to the business, financial condition, results ofoperations, dispositions, acquisitions and expansion projects of theCompany and its subsidiaries which involve risks and uncertaintiesthat cannot be predicted or quantified, and consequently, actualresults may differ materially from those expressed or implied herein.Such risks and uncertainties include, but are not limited to,financial market risks, the ability to maintain existing management,integration of acquisitions, competition within the gaming industry,the cyclical nature of the hotel business and gaming business,economic conditions, regulatory matters and litigation and other risksdescribed in the filings of the Company with the Securities andExchange Commission, including, but not limited to, the Company'sAnnual Report on Form 10-K for the year ended December 31, 2005, andits Registration Statement on Form S-4 File No. 333-133414. Allforward-looking statements are based on the Company's currentexpectations and projections about future events. All forward-lookingstatements speak only as of the date hereof and the Company undertakesno obligation to publicly update any forward-looking statements,whether as a result of new information, future events or otherwise.Additional financial information, including presentations from recentinvestor conferences, is available in the "Investor Relations" sectionof the Company's website at www.stationcasinos.com (3).

Construction projects such as Red Rock and the master-plannedexpansions of Santa Fe Station, Fiesta Henderson and Green ValleyRanch entail significant risks, including shortages of materials orskilled labor, unforeseen regulatory problems, work stoppages, weatherinterference, floods and unanticipated cost increases. The anticipatedcosts and construction periods are based on budgets, conceptual designdocuments and construction schedule estimates. There can be noassurance that the budgeted costs or construction period will be met.

Development of the proposed gaming and entertainment projects withthe Gun Lake Tribe, the Federated Indians of Graton Rancheria, theMechoopda Indian Tribe of Chico Rancheria and the North Fork Rancheriaof Mono Indians and the operation of Class III gaming at each of theprojects is subject to certain governmental and regulatory approvals,including, but not limited to, approval of state gaming compacts withthe State of Michigan or the State of California, the Department ofthe Interior completing the process of taking land into trust for thebenefit of the tribes and approval of the management agreements by theNational Indian Gaming Commission. No assurances can be given as towhen, or if, these governmental and regulatory approvals will bereceived.

(1) EBITDA consists of net income plus income tax provision,interest and other expense, loss on early retirement of debt, gain onasset disposals, preopening expenses, lease terminations,depreciation, amortization and development expense. EBITDA ispresented solely as a supplemental disclosure because the Companybelieves that it is a widely used measure of operating performance inthe gaming industry and as a principal basis for valuation of gamingcompanies. The Company believes that in addition to cash flows and netincome, EBITDA is a useful financial performance measurement forassessing the operating performance of the Company. Together with netincome and cash flows, EBITDA provides investors with an additionalbasis to evaluate the ability of the Company to incur and service debtand incur capital expenditures. To evaluate EBITDA and the trends itdepicts, the components should be considered. The impact of income taxprovision, interest and other expense, loss on early retirement ofdebt, gain on asset disposals, preopening expenses, leaseterminations, depreciation, amortization and development expense, eachof which can significantly affect the Company's results of operationsand liquidity and should be considered in evaluating the Company'soperating performance, cannot be determined from EBITDA. Further,EBITDA does not represent net income or cash flows from operating,financing and investing activities as defined by generally acceptedaccounting principles ("GAAP") and does not necessarily indicate cashflows will be sufficient to fund cash needs. It should not beconsidered as an alternative to net income, as an indicator of theCompany's operating performance or to cash flows as a measure ofliquidity. In addition, it should be noted that not all gamingcompanies that report EBITDA or adjustments to such measures maycalculate EBITDA or such adjustments in the same manner as theCompany, and therefore, the Company's measure of EBITDA may not becomparable to similarly titled measures used by other gamingcompanies. A reconciliation of EBITDA to net income is included in thefinancial schedules accompanying this release.

(2) Adjusted Earnings excludes development expense, preopeningexpenses, lease terminations, gain on asset disposals and loss onearly retirement of debt. Adjusted Earnings is presented solely as asupplemental disclosure because the Company believes that it is awidely used measure of operating performance in the gaming industryand as a principal basis for valuation of gaming companies, as thismeasure is considered by the Company to be a better measure on whichto base expectations of future results than GAAP net income. Areconciliation of Adjusted Earnings and EPS to GAAP net income and EPSis included in the financial schedules accompanying this release.

(3) The hyperlink to the Company's URL is included herein solelyfor the convenience of investors in accessing the audio webcast of thefirst quarter conference call. All other references herein to theCompany's URL are inactive textual references. None of the informationcontained on the Company's website shall be deemed incorporated byreference or otherwise included herein.
Station Casinos, Inc.
Condensed Consolidated Balance Sheets
(amounts in thousands)
(unaudited)

March 31, December 31,
2006 2005
----------- ------------

Assets:
Cash and cash equivalents $76,512 $85,552
Receivables, net 21,680 19,604
Other current assets 34,720 34,055
----------- ------------
Total current assets 132,912 139,211
Property and equipment, net 2,208,709 1,990,584
Other long-term assets 850,671 799,248
----------- ------------
Total assets $3,192,292 $2,929,043
=========== ============


Liabilities and stockholders' equity:
Current portion of long-term debt $239 $108
Other current liabilities 257,058 228,657
----------- ------------
Total current liabilities 257,297 228,765
Revolving credit facility 466,600 330,000
Senior and senior subordinated notes 1,904,958 1,606,545
Other debt 17,074 9,136
Interest rate swaps, mark-to-market (5,186) (1,461)
Other long-term liabilities 151,227 125,244
----------- ------------
Total liabilities 2,791,970 2,298,229
Stockholders' equity 400,322 630,814
----------- ------------
Total liabilities and stockholders'
equity $3,192,292 $2,929,043
=========== ============
Station Casinos, Inc.
Condensed Consolidated Statements of Operations
(amounts in thousands, except per share data)
(unaudited)


Three Months Ended
March 31,
-------------------
2006 2005
--------- ---------
Operating revenues:
Casino $216,223 $204,013
Food and beverage 38,871 36,837
Room 17,021 16,381
Other 13,972 11,183
Management fees 25,900 23,276
--------- ---------
Gross revenues 311,987 291,690
Promotional allowances (19,517) (18,230)
--------- ---------
Net revenues 292,470 273,460
--------- ---------

Operating costs and expenses:
Casino 74,180 70,728
Food and beverage 26,576 25,242
Room 5,544 5,202
Other 4,583 3,930
Selling, general and administrative 44,623 43,939
Corporate 16,287 14,192
Development 2,132 2,611
Depreciation and amortization 25,664 24,353
Preopening 14,122 617
Lease terminations 500 8,094
Gain on asset disposals, net (843) (87)
--------- ---------
213,368 198,821
--------- ---------

Operating income 79,102 74,639
Earnings from joint ventures 11,923 10,690
--------- ---------
Operating income and earnings from joint ventures 91,025 85,329
--------- ---------

Other income (expense):
Interest expense, net (23,816) (18,966)
Interest and other expense from joint ventures (1,568) (1,684)
Loss on early retirement of debt - (678)
--------- ---------
(25,384) (21,328)
--------- ---------

Income before income taxes 65,641 64,001
Income tax provision (24,519) (23,361)
--------- ---------
Net income $41,122 $40,640
========= =========

Earnings per common share:
Basic $0.64 $0.60
Diluted $0.62 $0.59

Weighted average common shares outstanding
Basic 64,104 67,435
Diluted 66,054 69,140

Dividends paid per common share $0.25 $0.21
Station Casinos, Inc.
Summary Information and
Reconciliation of Net Income to EBITDA
(amounts in thousands, except occupancy percentage and ADR)
(unaudited)

Three Months Ended
March 31,
-------------------
2006 2005
--------- ---------
Major Las Vegas Operations (a):
-------------------------------
Net revenues $254,720 $239,362

Net income $44,468 $40,506
Income tax provision 26,341 23,789
Interest and other expense, net 14,632 13,245
Depreciation and amortization 23,901 22,813
Gain on asset disposals, net (254) (160)
Preopening expenses - 94
--------- ---------
EBITDA $109,088 $100,287
========= =========

Green Valley Ranch (50% owned):
-------------------------------
Net revenues $67,094 $57,408

Net income $17,835 $15,740
Interest and other expense, net 6,194 5,527
Depreciation and amortization 5,998 5,215
Loss on asset disposals, net 23 522
--------- ---------
EBITDA $30,050 $27,004
========= =========

Major Las Vegas Operations including Green Valley Ranch:
--------------------------------------------------------
Net revenues $321,814 $296,770

Net income $62,303 $56,246
Income tax provision 26,341 23,789
Interest and other expense, net 20,826 18,772
Depreciation and amortization 29,899 28,028
(Gain) loss on asset disposals, net (231) 362
Preopening expenses - 94
--------- ---------
EBITDA $139,138 $127,291
========= =========

Total Station Casinos, Inc. (b):
--------------------------------
Net income $41,122 $40,640
Income tax provision 24,519 23,361
Interest and other expense, net 25,384 20,650
Depreciation and amortization 25,664 24,353
Lease terminations 500 8,094
Development expense 2,132 2,611
Preopening expenses 14,122 617
Gain on asset disposals, net (843) (87)
Loss on early retirement of debt - 678
--------- ---------
EBITDA $132,600 $120,917
========= =========

Occupancy percentage 98% 97%
ADR $66 $65

(a) The Major Las Vegas Operations include the wholly owned properties
of Palace Station, Boulder Station, Texas Station, Sunset Station,
Santa Fe Station, Fiesta Rancho and Fiesta Henderson.

(b) Total Station Casinos, Inc. includes the Major Las Vegas
Operations, Wild Wild West, Wildfire, Magic Star, Gold Rush, the
Company's earnings from joint ventures, management fees and
corporate expense.
Station Casinos, Inc.
Reconciliation of GAAP Net Income and EPS
to Adjusted Earnings and EPS
(amounts in thousands, except per share data)
(unaudited)

Three Months Ended
March 31,
---------------------
2006 2005
-------- --------

Adjusted Earnings (a):
Net income $41,122 $40,640
Development expense 1,386 1,697
Preopening expenses 9,179 401
Lease terminations 325 5,261
Gain on asset disposals (548) (57)
Loss on early retirement of debt - 441
-------- --------
Adjusted Earnings $51,464 $48,383
======== ========

Adjusted basic earnings per common share (a):
Net income $0.64 $0.60
Development expense 0.02 0.02
Preopening expenses 0.14 0.01
Lease terminations 0.01 0.08
Gain on asset disposals (0.01) -
Loss on early retirement of debt - 0.01
-------- --------
Adjusted basic earnings per common share $0.80 $0.72
======== ========

Weighted average common shares outstanding -
basic 64,104 67,435


Adjusted diluted earnings per common share (a):
Net income $0.62 $0.59
Development expense 0.02 0.02
Preopening expenses 0.14 0.01
Lease terminations 0.01 0.07
Gain on asset disposals (0.01) -
Loss on early retirement of debt - 0.01
-------- --------
Adjusted diluted earnings per common share $0.78 $0.70
======== ========

Weighted average common shares outstanding -
diluted 66,054 69,140

(a) All Dollar and per share amounts are shown net of tax.