Sands Regent

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International Guild of Hospitality & Restaurant Managers

Sands Regent (NasdaqSC:SNDS)

345 North Arlington Avenue
Reno, NV 89501

Phone: (775) 348-2200
Fax: (775) 348-6241
Email: sandsregency@allcasinos.com
Employees (last reported count): 782

The Sands Regent operates casino/tourist-based facilities through its wholly owned subsidiaries, Zante, Inc. and Last Chance, Inc. Zante owns and operates the Sands Regency casino/hotel in downtown Reno, Nevada, while Last Chance operates the Gold Ranch Casino and RV Resort located in Verdi, Nevada. In addition, the Company owns several smaller properties in Reno, consisting of a combined area of approximately .7 acres and operates a slot route, which places 69 devices in nine locations in the Reno area. On June 1, 2002, Last Chance completed the acquisition of certain assets of Prospector Gaming Enterprises, Inc. (PGE), pursuant to an asset purchase agreement dated as of December 27, 2001. Further, PGE's interest in California Prospectors Ltd. was also acquired by Last Chance pursuant to the member's interest purchase and sale agreement dated as of December 27, 2001.

Sands Regency Casino/Hotel

The Sands Regency Casino/Hotel operates an integrated lodging, gaming and entertainment complex in downtown Reno. It has approximately 29,000 square feet of gaming space and 836 hotel rooms, including 29 suites. The resort complex also includes a Tony Roma's restaurant, a Pizza Hut, an Arby's restaurant, a coffee house/deli-style restaurant, an Original Mels diner restaurant (operated by a third party) and Antonia's Very Italian Buffet. The facilities also include an entertainment show room, three cocktail lounges, a gift shop, a beauty/barber shop (operated by a third party), a bicycle and ski rental shop (operated by a third party), a video arcade, a health club, a swimming pool and almost 12,000 square feet of convention and meeting space that can seat up to approximately 950 people. The Company maintains multiple parking areas on its main casino/hotel property and adjacent to it, including a parking garage, with a total combined capacity for approximately 1,000 vehicles. Although The Sands Regent offers, on a very limited basis, complimentary hotel accommodations to select customers, no-group arrangements, known as junkets, are conducted.

As expected, operations during the fiscal year ended June 30, 2002 (fiscal 2002) were negatively impacted by the lack of a major citywide bowling tournament and the remodeling of the Reno-Sparks Convention and Visitors Authority convention center. The hotel room occupancy for fiscal 2002 was approximately 80.2%, compared to approximately 85.9% for the fiscal year ended June 30, 2001 (fiscal 2001).

As of September 1, 2002, gaming facilities at the Sands Regency Casino/Hotel offered 18 table games, including 13 blackjack tables, one craps table, one roulette table, one let-it-ride table, one three-card poker table and one pai gow poker table. The casino also offers two keno games and approximately 582 slot machines and a bingo parlor that seats approximately 175 persons. Gaming accounted for approximately 57% of the Company's revenues from continuing operations in Reno in fiscal 2002.

Gold Ranch Casino and RV Resort

Gold Ranch Casino and RV Resort offers approximately 284 slot machines in an 8,000-square-foot casino, two restaurants, two bars, a 105-space RV Park, a California lottery station, an ARCO gas station (which is not owned but operated by Gold Ranch under a management agreement), a convenience store and a Jack-in-the-Box restaurant that is leased to a third party. Gold Ranch's guests include both tourists and local residents. Local residents generate approximately 60% of Gold Ranch's casino activity. Gold Ranch attempts to attract local residents through mid-week promotions geared toward enhancing local play mainly through lottery, casino and restaurant programs. Tourist programs emphasize the RV Park, casino and food cross promotions.

The Company's operations are conducted around the clock. The primary source of revenue and income to the Company is its gaming activities, although the hotel, RV park, bars, shops, restaurants, convenience store, gas station and other services are important in supplementing the Company's gaming activities revenue. The Sands Regent's operating and marketing philosophy emphasizes high-volume business, offering large, attractive hotel rooms at reasonable prices to group, air wholesale and motor coach business primarily from Western Canada, the Pacific Northwest and Northern California. The Company generally does not extend credit to its gaming customers.

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