Hard Rock Hotel & Casino in Las Vegas Reports 3rd Quarter Net Revenues, EBITDA & Net Income LAS VEGAS, Oct. 27 /PRNewswire/ -- Hard Rock Hotel, Inc. ("Hard Rock"), which owns and operates the Hard Rock Hotel & Casino in Las Vegas, Nevada, today reported that 3rd quarter net revenues increased $3.5 million or 10% to $37.2 million compared with $33.7 million in the year-earlier three-month period. Earnings before interest, taxes, depreciation and amortization and loss on early extinguishment of debt ("Adjusted EBITDA") (1), increased $1.9 million or 24% to $9.8 million compared with $7.9 million in the year-earlier period. Net income remained consistent at $1.9 million. (Logo: http://www.newscom.com/cgi-bin/prnh/20010507/HRHCLOGO ) Quarterly net revenues improved due primarily to increased food and beverage revenue and increased hotel revenue. Adjusted EBITDA increased due to improvements in net operating profits in every department except for retail, which remained constant. Peter Morton, Hard Rock's Chairman of the Board and Chief Executive Officer, commenting on the quarterly results stated, "Our record 3rd quarter Adjusted EBITDA performance was also the 2nd highest of any quarter in the Company's history. It was achieved through the implementation of several new programs designed to stimulate revenues while controlling costs in combination with the hard work of our employees. The Company has never been in a better position both financially and operationally." There will be a conference call open to investors: Date: Wednesday, October 29, 2003 Time: 2:00 P.M. Eastern Daylight Time 11:00 A.M. Pacific Daylight Time Dial: (888) 273-9885 Domestic only CONTACT: Jim Bowen of Hard Rock Hotel, Inc., 702-693-5031 This press release contains certain forward-looking statements, which Hard Rock is making in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements are subject to significant risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, or achievements of Hard Rock, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Additional information concerning risk factors that could cause actual results or events to differ materially from those projected in the forward-looking statements are contained in Hard Rock's filings with the Securities and Exchange Commission. HARD ROCK HOTEL, INC. (in thousands, except share and per share amounts) (unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2003 2002 2003 2002 Revenue: Casino $15,225 $15,217 $43,272 $42,363 Lodging 8,015 6,833 23,111 20,655 Food and beverage 12,406 10,212 35,804 31,830 Retail 2,256 2,219 6,492 6,844 Other income 2,123 1,987 5,810 5,603 Gross revenues 40,025 36,468 114,489 107,295 Less: complimentaries (2,787) (2,736) (8,392) (8,099) Net revenues 37,238 33,732 106,097 99,196 Costs and expenses: Casino 8,281 8,503 25,030 24,767 Lodging 1,981 1,856 5,765 5,373 Food and beverage 6,474 5,568 18,576 16,155 Retail 958 925 2,819 2,923 Other 1,076 1,032 2,957 2,950 Marketing 2,314 2,265 5,551 5,862 Related party expenses 1,071 1,001 3,276 2,779 General and administrative 5,293 4,539 14,691 12,730 Pre-opening expense 37 100 60 100 Total costs and expenses 27,485 25,789 78,725 73,639 Earnings before interest, taxes, depreciation and amortization and loss on early extinguishment of debt ("Adjusted EBITDA") 9,753 7,943 27,372 25,557 Depreciation and amortization 2,990 2,826 8,766 8,483 Interest expense, net 4,928 3,242 11,947 9,902 Loss on early extinguishment of debt -- -- 4,258 -- Income tax (benefit) provision -- -- (100) -- Other (income) expense, net (53) (4) (20) 40 Net Income 1,888 1,879 2,521 7,132 Preferred stock dividends -- 1,386 2,346 4,029 Income applicable to common shareholders $1,888 $493 $175 $3,103 BASIC AND DILUTED NET INCOME PER SHARE Applicable to common shareholders $24.83 $6.48 $2.30 $40.82 Weighted average number of common shares outstanding 76,023 76,023 76,023 76,023 Reconciliation of Net Income to Adjusted EBITDA (1) (in thousands) (unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2003 2002 2003 2002 Net Income (Loss) $1,888 $1,879 $2,521 $7,132 Depreciation and amortization 2,990 2,826 8,766 8,483 Interest expense, net 4,928 3,242 11,947 9,902 Loss on early extinguishments of debt -- -- 4,258 -- Income tax (benefit) provision -- -- (100) -- Other (income) expense, net (53) (4) (20) 40 Earnings before interest, taxes, depreciation and amortization and loss on early extinguishments of debt ("Adjusted EBITDA") $9,753 $7,943 $27,372 $25,557 (1)Adjusted EBITDA consists of earnings before interest, taxes, depreciation and amortization and loss on early extinguishment of debt, as applicable. Adjusted EBITDA is presented solely as a supplemental disclosure because management believes that it is 1) a widely used measure of operating performance in the gaming industry, and 2) a principal basis for valuation of gaming companies. Adjusted EBITDA should not be construed as an alternative to operating income, as an indicator of the Company's operating performance, or as an alternative to cash flows from operating activities, as a measure of liquidity, or as any other measure determined in accordance with generally accepted accounting principles. The Company has significant uses of cash flows, including capital expenditures, interest payments and debt principal repayments, which are not reflected in Adjusted EBITDA. Also, other gaming companies that report Adjusted EBITDA information may calculate Adjusted EBITDA in a different manner than the Company. http://www.newscom.com/cgi-bin/prnh/20010507/HRHCLOGO http://photoarchive.ap.org/ DATASOURCE: Hard Rock Hotel, Inc. CONTACT: Jim Bowen of Hard Rock Hotel, Inc., +1-702-693-5031 Web site: http://www.hardrockhotel.com/

Copyright