Trump Entertainment Resorts Release Full-Year Results

ATLANTIC CITY, New Jersey  -- Trump Entertainment Resorts, Inc. (the "Company") (NASDAQ NMS: TRMP) today reported its operating results for the fourth quarter ended December 31, 2005.
Trump Entertainment Resorts  The Company's loss from continuing operations was ($26.1) million or ($0.86) per share for the quarter ended December 31, 2005, compared to the ($108.9) million loss or ($3.64) per share of our Predecessor Company for the quarter ended December 31, 2004. Net loss, including the results of our discontinued operations, was ($22.1) million or ($0.73) per share in the fourth quarter of 2005 verses a net loss of ($99.8) million or ($3.34) per share in the fourth quarter of 2004.

For the period from May 20, 2005 (the effective date of the Company's reorganization) through December 31, 2005, loss from continuing operations was ($36.3) million or ($1.19) per share. Net loss, including the results of our discontinued operations was ($26.5) million or ($0.87) per share.

Donald J. Trump, Chairman of the Board commented, "2005 was a year of tremendous accomplishment for Trump Entertainment Resorts. The reorganization in May, which resulted in the Company achieving a much more favorable capital structure, was the catalyst for a series of significant events that have us excited about the future. We began by restructuring the management team with several proven leaders in the gaming industry. Through this team, we are implementing a series of operational changes at our properties. We completed the sale of Trump Indiana, which together with our available credit facilities, has allowed us to initiate an aggressive capital plan to improve and expand our facilities.

I am very excited about the Company's prospects in 2006 and beyond."

As a result of our reorganization effective in May 2005, the comparability of our operating results from continuing operations for the fourth quarter of 2005 verses fourth quarter 2004 were impacted by the following items:

1. Overall interest expense decreased by $25.0 million from $57.2 million to $32.2 million due to the decrease in debt levels and interest rates.

2. Depreciation and amortization decreased by $8.1 million from the revaluation of our assets on May 20, 2005.

3. Our fourth quarter 2005 loss from continuing operations includes a minority interest benefit of $6.5 million.

4. The provision for income taxes includes a non cash charge-in-lieu of income taxes of $8.7 million.

The Company reported adjusted EBITDA of $27.5 million on net revenues of $234.7 million in the fourth quarter of 2005 compared to adjusted EBITDA of $41.0 million in 2004 on net revenues of $236.7 million.

Adjusted EBITDA is EBITDA excluding reorganization expenses and related costs, development costs, severance costs and property tax reserve. EBITDA and Adjusted EBITDA are not Generally Accepted Accounting Principles ("GAAP") measurements, but are commonly used in the gaming industry as measures of performance and as a basis for valuation of gaming companies. Refer to the selected financial information accompanying this press release for a reconciliation of income from operations to Adjusted EBITDA.

Mark Juliano, the Company's Chief Operating Officer commented, "Our fourth quarter financial statements continue to reflect matters associated with the Company's reorganization and as a result, generally, are not comparable to prior periods. While revenues decreased in the fourth quarter we are beginning to see the impact of the change in our marketing strategy as promotional allowances decreased by $10.7 million. While these changes have negatively impacted revenue and profitability in the short term, they are designed to enable us to realize margin improvements going forward. We began the process of making the necessary operating and cultural changes at our properties with the expectation that it would take approximately 18 months before we would see the full benefits. I believe we are on track to meet this timeframe with the changes we have implemented, in conjunction with the additional changes we have planned. To date, we have streamlined the management structure at our properties and have begun the process of implementing a renewed focus on how we spend our marketing dollars. In 2006, we will continue to modify and refine our marketing efforts and will implement a data warehouse which will allow us to build programs around our most profitable customers, we will implement further operating efficiencies through the introduction of centralized scheduling and yield management systems. As part of our renewed emphasis on customer service, we will also initiate customer courtesy and leadership training programs at our three casinos."

The Company indicated that fourth quarter results are also impacted by costs associated with the changes made to streamline the management structure at the properties and complete the management team at the corporate office, increased utilities costs and costs connected with the Company's development efforts in Philadelphia.

James B. Perry, Chief Executive Officer and President added, "With the sale of Trump Indiana closing in December 2005, we had in excess of $228.5 million in cash and cash equivalents at December 31, 2005, and had $200 million available under the revolving credit portion of our credit facility and $150 million available under the delayed draw term loan. In December, we announced the first phase of our capital improvement plan to spend some $110 million on the reinvigoration of our properties. This plan will include projects at all three of our properties, including improved restaurant and retail venues, more exciting casino floors, improved meeting and convention space and rethemed entertainment areas, as well as completing the renovation of all our rooms and suites. In addition, we plan to commence construction of a new tower at the Taj Mahal in June 2006, which should enable us to maximize operating results by taking advantage of existing capacity on the gaming floor and in our restaurant and convention facilities."

Perry concluded, "In addition, we continue to look for growth opportunities beyond Atlantic City, both domestic and internationally, that would enable us to lever the Trump brand. We are excited about the prospects of our proposed casino in Philadelphia and are preparing for the first set of public hearings to be held in April 2006. We are also actively pursuing a potential venture in Johnston, Rhode Island, near Providence. While this project would be several years in the future, we believe it could prove to be a great growth opportunity for Trump Entertainment Resorts if expanded gaming is approved in Rhode Island. Additionally, we are continuing to look for opportunities that will allow us to introduce the Trump brand to other gaming markets and diversify our cash flows."

Both the operating results prior to the effective date of the Company's plan of reorganization on May 20, 2005 ("Effective Date") and for the period commencing on the Effective Date through December 31, 2005 are reflected in the attached statements of operations. To facilitate analysis and comparison with the prior year, the results of the Company's operating entities have been combined to include both the prior period and the period following the Effective Date for the year ended December 31, 2005 in the attached supplemental schedules.

2006 Outlook:

The Company announced the following relating to expected financial performance in 2006:

1. The Company expects to begin to see year over year gains in revenues towards the end of the first quarter as a result of the initial operational and marketing changes that have been implemented. The Company expects to see improvements in EBITDA from these changes beginning sometime in the second quarter.

2. The Company expects stock based compensation expense for 2006 to be approximately $5 million. Stock based compensation is a non cash operating expense.

3. Depreciation expense should be approximately $75 million for the year ended December 31, 2006.

4. Interest expense for 2006 will be approximately $120 million to $125 million.

5. In 2006, the Company expects to record a total provision for income taxes of $9 million to $11 million including a non cash charge-in-lieu of taxes of $4 million to $5 million.

6. Capital expenditures are expected to be as follows:

Retheming and updating capital                    $75 to $85 million
Taj Mahal expansion                               $25 to $30 million
Maintenance and technology                        $55 to $65 million
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2006 estimated range                             $155 to $180 million
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7. The above mentioned items are being supplied under the assumption that there will be no material changes in economic conditions, applicable legislation or regulation, world events or other circumstances beyond the Company's control that may adversely affect the Company's results of operations or financial condition.