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Riviera Reports Improved First Quarter 2004

Riviera Holdings Corporation today reported improved financial results for the first quarter ended March 31, 2004. Net revenues for the quarter were $50.5
million, up $3.0 million or 6.3 percent from the first quarter of 2003.
Income from operations was $7.4 million, up $2.7 million or 56.6 percent
from the first quarter of 2003. EBITDA was $10.7 million; up $1.8 from the
first quarter of 2003. EBITDA consists of earnings before interest, income
taxes, depreciation, and amortization, as shown in the reconciliation to
net income (loss) in the tables of this release. Net income for the
quarter was $540,000 or $0.15 per diluted share compared to a net loss of
$2.2 million or ($0.62) per share in the first quarter of 2003. First Quarter 2004 Highlights * The Company reported net income for the
quarter of $540,000, a $2.7 million turn around from the first quarter of
2003. * Riviera Black Hawk revenues were up 11.7 percent * Riviera Black
Hawk EBITDA was up $1.2 million or 40.3 percent * Riviera Las Vegas
revenues were up $1.6 million or 4.4 percent * Riviera Las Vegas occupancy
was 94.9 percent compared with 92.0 percent in the first quarter of 2003,
ADR (Average Daily Rate) increased $5.10 to $66.94 * Riviera Las Vegas
EBITDA was up $562,000 or 8.0 percent * The Company has $21.7 million in
cash plus its $30 million revolver available Riviera Las Vegas

Robert Vannucci, President of Riviera Las Vegas, said, “We continue to see
better performance at our Las Vegas property. First quarter EBITDA was
$7.6 million, up $562,000 or 8.0 percent over the prior year. The increase
in EBITDA was fueled by increases in non-gaming revenues attributable to a
higher mix of in house conventions and increased room rates in all other
room categories.

“Revenue increases began in the third quarter of 2003 and have continued
into 2004. All non-gaming departments showed improved revenue. Overall
first quarter net revenues increased by $1.6 million up 4.4 percent
compared with same period last year.

“Room occupancy of 94.9 percent was up 2.9 points from last year’s 92
percent. Total room revenue increased by $1.3 million or 11.7 percent over
prior year. ADR of $66.94 was up $5.10 compared to prior year ADR of
$61.84. Revenue per available room (Rev Par) was $63.50 for the quarter
compared with $56.92 last year, a gain of $6.58 or 11.6 percent. The
increase in occupied room nights and change in occupancy mix stimulated
increases in all non-gaming revenue centers.

“Convention room nights for the quarter were up 11,600 room nights or 28.9
percent compared to the same period last year. Our refined internet
strategy enabled us to achieve our desired balance of ADR and bookings.
First quarter room nights booked over the internet were up 2.3 percent
over prior year while ADR for those rooms increased by $2.20 or 4 percent.


“Entertainment revenues were up $265,000 or 6.1% over prior year, while
ticket sales increased by 23,000 or 17.4 percent, contributing to an
increase in overall walk in business. Food and beverage revenues increased
by $923,000 or 14.2 percent over the same quarter last year.

“Casino revenues were down $807,000 or 5.3% due to fluctuations in table
games hold percentages and lower slot coin-in, as the business mix of
customers in the hotel rooms included more higher-rate convention
customers in 2004, who generally gamble less than other room categories.

“According to the Las Vegas Convention and Visitors Authority, for the
first two months of 2004, the Las Vegas market has seen a 5.0 percent
increase in visitors and a 3.8 percent increase in small meeting and
convention room nights. If this momentum continues, Las Vegas could record
its highest number of total visitors in 2004, beating total visitors of
35.85 million recorded in 2000. Airline daily seat capacity has grown by
an average of 10,000 seats per day compared to prior year, exceeding
pre-September 11 numbers every month in the quarter. This has stimulated
market demand, increased room sales activity and helped to improve group
and convention block pick up. City wide occupancy is up 1.2 percent and
ADR is up 9 percent to $95.11. These trends are continuing into the second
quarter of 2004.”

Riviera Black Hawk

Ron Johnson, President of Riviera Black Hawk, said, “We are very proud of
our record performance in the first quarter. We were able to achieve all
time highs for gaming revenue, total revenues, EBITDA, and market share.
This is particularly impressive since the first quarter is typically the
weakest quarter of the year for the Black Hawk market. Net revenues
reached a record $13.1 million during the quarter. EBITDA for the quarter
grew by 40.3 percent to a record $4.2 million. EBITDA margin increased to
32.3 percent. The first quarter benefited from several factors, the most
important of which was the continued strength of our marketing plan
focused on profitably building slot revenues and market share. Also having
a beneficial impact on results in the first quarter was an extra day in
February and better weather in February and March of this year compared to
last year. Our business levels were also helped by the construction
disruption at a competing casino, resulting in more customers parking in
our garage and playing in our casino, particularly on weekdays.

“We believe favorable weather and improved economic conditions in the
Denver metro area were major factors for the 5.9 percent growth in gaming
revenues for the Black Hawk market during the first quarter of 2004. We
expect continued market growth during the balance of the year as the local
economy continues to improve.”