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For the quarter, we reported a net loss of $13.8 million, or $0.16 per share, compared to a loss of $32.6 million, or $0.37 per share, in the same period last year. The loss was due in part to a non-cash, pre-tax impairment charge of $28.4 million related to the write-off of goodwill incurred as a result of the finalization of our purchase price for Dania Jai-Alai in January 2009.

Adjusted Earnings(1) for the first quarter 2009 were $13.0 million, or $0.15 per share, compared to $29.6 million, or $0.34 per share, for the same period in 2008. During the first quarter 2009, certain pre-tax adjustments resulted in a net reduction of income by $41.5 million ($26.8 million, net of tax, or $0.31 per share). By comparison, the first quarter 2008 included certain pre-tax adjustments that had a net effect of reducing income by $95.0 million ($62.2 million, net of tax, or $0.71 per share). Pre-tax adjustments in the first quarter 2009 and 2008 are listed in a table at the end of this press release.

Net revenues were $434.8 million for the first quarter 2009, compared to $471.1 million for the same quarter in 2008, a decrease of 7.7%. Total Adjusted EBITDA was $109.6 million for the quarter, compared to $127.7 million in the prior year.

Keith Smith, President and Chief Executive Officer of Boyd Gaming, commented on the quarter, "The recession continues to impact our business, but we're encouraged by some positive trends that developed during the quarter. In our Las Vegas Locals region, we began to see signs of stabilization, while Borgata continued to outperform a severely challenged Atlantic City market. Results were especially encouraging in our Midwest and South and Downtown Las Vegas regions, both of which posted gains for the quarter. These regional performances helped to offset difficult economic climates in Las Vegas and Atlantic City, and demonstrate the value of geographic diversification to our Company."

(1) See footnotes at the end of the release for additional information relative to non-GAAP financial measures.

   Key Operations Review   Las Vegas Locals  

In our Las Vegas Locals segment, first quarter 2009 net revenues were $170.1 million versus $206.5 million for the first quarter 2008. First quarter 2009 Adjusted EBITDA was $45.3 million, a 32.0% decrease from the $66.7 million in the same quarter 2008. We continue to be impacted by overall weakness in consumer spending, as well as significant declines in room rates.

Downtown

Our Downtown Las Vegas properties generated net revenues of $58.7 million and Adjusted EBITDA of $13.4 million for the first quarter 2009, versus $60.9 million and $10.2 million, respectively, for the first quarter 2008. Favorable fuel pricing led to improved margins from our Hawaii charter operations, while increased efficiencies in our Downtown operations also strengthened results.

Midwest and South

In our Midwest and South region, we recorded $206.1 million in net revenues for the first quarter 2009, compared to $203.7 million for the same period in 2008. Adjusted EBITDA for the current period was $48.0 million, an increase of 5.3% from the $45.6 million reported in the first quarter of 2008. Continued strength at our Louisiana properties helped boost results from this region, highlighted by all-time record revenue and Adjusted EBITDA at Delta Downs.

Borgata

Borgata's operating income for the first quarter 2009 was $25.5 million versus $37.1 million for the first quarter 2008. Net revenues for Borgata were $187.9 million for the first quarter 2009, down compared to the $202.0 million recorded in the same quarter in 2008. Adjusted EBITDA was $45.9 million, compared to $55.5 million for the first quarter 2008. Borgata's results were adversely impacted by both the recession and an increasingly competitive regional environment.

Paul Chakmak, Executive Vice President and Chief Operating Officer, said, "We responded aggressively to this downturn by streamlining our operations and removing costs from across our business. These efforts helped lessen the recession's impact on our results, particularly in our Las Vegas regions. Elsewhere, results were brighter. Our Louisiana properties have proven resilient, and our Blue Chip expansion is being favorably received as we transition from our opening phase."

Key Financial Statistics

The following is additional information as of and for the three months ended March 31, 2009:

   --  March 31 debt balance: $2.70 billion   --  March 31 cash: $98.2 million   --  Maintenance capital expenditures during the quarter: $7.5 million   --  Expansion capital expenditures during the quarter: $19.5 million       --  Echelon: $10.9 million       --  Blue Chip: $8.6 million   --  Capitalized interest during the quarter: $0.4 million    --  March 31 debt balance at Borgata: $699.9 million     Conference Call Information  

We will host our first quarter 2009 conference call today Wednesday, May 6 at 12:00 p.m. Eastern. The conference call number is 888.680.0865 and the passcode is 63949973. Please call up to 15 minutes in advance to ensure you are connected prior to the start of the call.

The conference call will also be available live on the Internet at http://www.boydgaming.com/ or http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=95703&eventID= 2170613

Following the call's completion, a replay will be available by dialing 888.286.8010 on Wednesday, May 6, beginning two hours after the completion of the call and continuing through Wednesday, May 13. The passcode for the replay will be 29662484. The replay will also be available on the Internet at http://www.boydgaming.com/.

The following table presents Net Revenues and Adjusted EBITDA by operating segment and reconciles Adjusted EBITDA to net loss for the three months ended March 31, 2009 and 2008. Note that in the Company's periodic reports filed with the Securities and Exchange Commission, the results from Dania Jai-Alai and corporate expense are classified as part of total other operating costs and expenses and are not included in Reportable Segment Adjusted EBITDA.

                                          Three Months Ended                                               March 31,                                            --------------                                            2009      2008                                            ----      ----   Net Revenues                             (In thousands)       Las Vegas Locals                   $170,099  $206,494       Downtown Las Vegas (a)               58,665    60,929       Midwest and South                   206,081   203,695                                           -------   -------               Net revenues               $434,845  $471,118                                          ========  ========   Adjusted EBITDA       Las Vegas Locals                    $45,320   $66,655       Downtown Las Vegas                   13,354    10,169       Midwest and South                    48,021    45,599                                            ------    ------           Wholly-owned property Adjusted            EBITDA                         106,695   122,423           Corporate expense (c)            (9,980)  (13,746)                                            ------   -------               Wholly-owned Adjusted                EBITDA                      96,715   108,677           Our share of Borgata's             operating income before net             amortization, preopening             and other items (d)            12,917    19,005                                            ------    ------               Adjusted EBITDA (e)         109,632   127,682                                           -------   -------   Other operating costs and expenses       Deferred rent                         1,089     1,134       Depreciation and amortization (f)    42,976    43,494       Preopening expenses                   5,839     5,579       Our share of Borgata's preopening        expenses                               176       408       Our share of Borgata's write-downs        and other charges, net                  (5)       70       Share-based compensation expense      3,392     2,969       Write-downs and other charges        28,963    90,313                                            ------    ------               Total other operating                costs and expenses          82,430   143,967                                            ------   -------   Operating income (loss)                  27,202   (16,285)                                            ------   -------   Other non-operating items       Interest expense, net (b)            45,267    30,253       Increase in value of derivative        instruments                              -      (442)       Gain on early retirements of debt    (2,400)     (950)       Our share of Borgata's non-        operating expenses, net              4,522     4,605                                             -----     -----               Total other non-                operating costs and                expenses, net               47,389    33,466                                            ------    ------   Loss before income taxes                (20,187)  (49,751)   Benefit from income taxes                 6,359    17,164                                             -----    ------   Net loss                               $(13,828) $(32,587)                                          ========  ========    (a) Includes revenues related to Vacations Hawaii and other travel agency       related entities of $8.7 million and $10.0 million for the three       months ended March 31, 2009 and March 31, 2008, respectively.    (b) Net of interest income and amounts capitalized. Interest expense for       the three months ended March 31, 2009 includes $8.9 million of prior       period interest expense (from the March 1, 2007 date of acquisition to       December 31, 2008) related to the January 2009 amendment to the       purchase agreement resulting in the finalization of our purchase price       for Dania Jai-Alai.    (c) The following table reconciles the presentation of corporate expense       on our condensed consolidated statements of operations to the       presentation on the accompanying table.                                             Three Months Ended                                               March 31,                                             --------------                                             2009      2008                                             ----      ----                                            (In thousands)   Corporate expense as reported on our    condensed consolidated statements of    operations                             $12,685   $15,773   Corporate share-based compensation    expense                                 (2,705)   (2,027)                                            ------    ------   Corporate expense as reported on the    accompanying table                      $9,980   $13,746                                            ======   =======    (d) The following table reconciles the presentation of our share of       Borgata's operating income on our condensed consolidated statements of       operations to the presentation of our share of Borgata's results on       the accompanying table.