Butler National Service approved for Kansas contract

29 May 2008

OLATHE, Kansas -- (PRESS RELEASE) -- Butler National Corporation (OTC Bulletin Board: BUKS) announces its wholly owned subsidiary, Butler National Service Corporation, a recognized provider of professional management services in the gaming industry, received approval from the Kansas Lottery Commission of its management proposal and contract for the Southwest Gaming Zone. The Lottery Commission directed the Executive Director of the Kansas Lottery, on behalf of the State of Kansas, to forward the Management Contract with Butler National Service Corporation to the Lottery Gaming Facility Review Board.

Butler National is one of two applicants proposing to manage the Ford County/Southwest Gaming Zone Casino forwarded to the Review Board. The Contract does not become effective until approved by the Lottery Gaming Facility Review Board and the Kansas Racing and Gaming Commission. This approval could be in December 2008.

The Boot Hill Casino and Resort plan is to have 800 slot machines and 20 table games. The plan includes a 124-room luxury hotel, a spa, restaurants, and a 500 seat conference center/entertainment venue implemented in a phased approach. The estimated project cost is $92.9 million.

The estimated average net machine income per day is $180. The estimated average net table income per unit per day is $671. The State of Kansas will receive 27% of the gaming revenue with additional incentives based on casino performance.

"We are excited to move to the next step in this process. The Lottery Gaming Facility Review Board must now make important decisions for the future of Kansas. We are convinced that Butler National Service Corporation is the best applicant to manage a destination casino known as the Boot Hill Casino and Resort in the Southwest Gaming Zone. We understand the needs of western Kansas. As the destination casino manager, we will best serve the interests of Dodge City, Wild West Country and the state of Kansas," commented Clark D. Stewart, President and CEO.

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