The Sands Regent Announces Update on Rail City Expansion Plans

Mar 21, 2006, 00:00 ET from The Sands Regent

    RENO, Nev., March 21 /PRNewswire-FirstCall/ -- The Sands Regent
 (Nasdaq:   SNDS) today announced an update on expansion plans for its Rail City
 Casino property in Sparks, NV.
     Initially, the property's current 650 slot machines will be increased to
 850, with ultimate plans for a total of 1,000 games.  Pending completion of
 the permit process with the city of Sparks, management plans to begin a
 six-month, phased construction process in mid-calendar year 2006.  Included in
 the scope of the expansion will be an additional restaurant and bar venue.
     Effective March 20, 2006, Plantation Investments, Inc., a subsidiary of
 the Company, has contracted to purchase a half-acre site that is adjacent to
 the casino, for $1.3 million.  Occupying the site currently is a 27-unit
 motel.  The Company plans to demolish substantially all of the motel units to
 provide for additional customer parking during construction and once the
 expansion is completed.  Closing of the transaction is scheduled to occur on
 or before April 3, 2006.
     The scope of the expansion has been increased and the budgeted project
 costs have been revised to approximately $13.8 million versus the previous
 estimate of $8.5 million.  Increased construction costs, refinement of the
 project scope, careful sequencing of construction activity to minimize
 customer inconvenience and the acquisition of additional land for customer
 parking are the primary drivers of the increased cost estimates.
     Ferenc Szony, President and CEO of The Sands Regent, commented, "We are
 confident that by enhancing this expansion opportunity at Rail City Casino, we
 will ensure that the new facility will exceed customer expectations, in part
 by adding even more parking than originally planned, right on Victorian
 Avenue.  The added investment will ensure that we maximize the property's
     About The Sands Regent
     The Sands Regent owns and operates Rail City Casino in Sparks, Nevada,
 Sands Regency Casino and Hotel in downtown Reno, Nevada, Gold Ranch Casino and
 RV Resort in Verdi, Nevada, and the Depot Casino and Red Hawk Sports Bar in
 Dayton, Nevada.
     Rail City Casino, located in Sparks, Nevada, currently has approximately
 16,600 square feet of gaming space housing slot machines, table games, keno, a
 sports book, and the City Cafe family-style restaurant, with plans to expand
 by 23,500 square feet in 2006 to house additional slot machines and add a brew
 pub restaurant and bar.  Located near Victorian Square at 2121 Victorian
 Avenue in Sparks, it is the first casino a motorist encounters when exiting
 Interstate 80 at the Rock Boulevard exit (Exit 16).  Web site:
     The Sands Regency is an 833-room hotel and casino with 29,000 square feet
 of gaming space offering table games, a sports book, poker room, keno, bingo
 and slot machines.  In addition to the amenities and on-site brand name
 restaurants, the Company's property also includes a 12,000 square foot
 convention and meeting center which seats close to 1,000 people.  For further
 information, visit
     The Gold Ranch Casino and RV Resort is located in Verdi, Nevada, twelve
 miles west of Reno.  Gold Ranch offers slot machines in an 8,000 square foot
 casino, a sports book, two restaurants, a 105-space RV park, a California
 lottery station, an ARCO gas station and a convenience store.  Web site:
     The Depot Casino and the Red Hawk Sports Bar, acquired on
 September 1, 2005, are located in Dayton, Nevada.  The Depot Casino has
 approximately 16,000 square feet of restaurant and casino space with
 250 slots, a restaurant and two bars.  The Red Hawk Sports Bar, across the
 street from Depot Casino, has 33 slots, a convenience store and a bar.
     This press release contains forward-looking statements within the meaning
 of the Private Securities Litigation Reform Act of 1995.  The forward-looking
 statements contained in this release are based on current expectations and
 entail various risks and uncertainties that could cause actual results to
 differ materially from those suggested in the forward-looking statements.
 Such risks and uncertainties include, among others, the future performance of
 the Company's management team, general economic financial and business
 conditions, overall conditions in the gaming and entertainment industries, our
 ability to successfully integrate the operations of casinos that we acquire
 and realize the expected benefits of these acquisitions, the risk that the
 land purchase and Rail City expansion discussed in this press release may not
 occur in a timely manner or at all, our ability to carry out our development
 plans (including the development plans discussed in this press release) in a
 timely manner and on budget, and other factors discussed in our Annual Report
 on Form 10-K for the year ended June 30, 2005, as well as Forms 10-Q and other
 filings with the Securities and Exchange Commission.  The Sands is providing
 this information as of the date of this release and does not undertake any
 obligation to update any forward-looking statements contained in this document
 as a result of new information, future events or otherwise.
     Ferenc B. Szony, President and Chief Executive Officer
     The Sands Regent
     (775) 348-2210
     Sean Collins, Partner
     CCG Investor Relations
     (310) 477-9800

SOURCE The Sands Regent