Caution Concerning Forward-Looking Statements

This release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, many of which are beyond our ability to control or predict. Forward-looking statements may be identified by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will,” or words of similar meaning and include, but are not limited to, statements about the expected future business and financial performance of AREP and its subsidiaries. Among these risks and uncertainties are risks related to our oil and gas exploration and production operations, including costs of drilling, completing and operating wells and the effects of regulation; risks related to our gaming and associated hotel, restaurant and entertainment operations, including the effects of regulation, substantial competition, rising operating costs and economic downturns; risks related to our real estate activities, including the effect of any tenant bankruptcies and insolvencies, our ability to maintain tenant occupancy at current levels, our ability to obtain, at reasonable costs, adequate insurance coverage and competition for investment properties; risks related to our home fashion operations, including changes in the availability and price of raw materials, changes in customer preferences and changes in transportation costs and delivery times; and other risks and uncertainties detailed from time to time in our filings with the SEC. We undertake no obligation to publicly update or review any forward-looking information, whether as a result of new information, future developments or otherwise.

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APPENDIX I

CONSOLIDATED STATEMENTS OF OPERATIONS
In millions of dollars except per unit data

		Three Months Ended
		June 30,
		2006				2005
Revenues		$	507.6			$	221.4
Operating income		$	24.5			$	48.1
Interest expense			(31.6	)			(28.8	)
Interest income			13.7				14.2
Other income (expense), net			46.1				(19.8	)
Income before tax and minority interests			52.7				13.7
Income tax expense			(9.1	)			(9.0	)
Minority interests			25.8				0.6
Income from continuing operations			69.4				5.3
Income from discontinued operations			1.7				3.0
Net earnings		$	71.1			$	8.3
Net earnings attributable to
Limited partners		$	69.7			$	(2.8	)
General partner			1.4				11.2
		$	71.1			$	8.4
Net earnings per LP unit:
Basic earnings:
Income from continuing operations		$	1.10			$	(0.12	)
Income from discontinued operations			0.03				0.06
Basic earnings per LP unit		$	1.13			$	(0.06	)
Weighted average units Outstanding			61.9				46.3
Diluted earnings:
Income from continuing operations		$	1.08			$	(0.12	)
Income from discontinued operations			0.03				0.06
Diluted earnings per L.P. unit		$	1.11			$	(0.06	)
Weighted average units and equivalent units outstanding			64.5				46.3

APP-I-1

APPENDIX II

CONSOLIDATED SUMMARY BALANCE SHEET

The following table presents AREP’s consolidated summary balance sheet data as of June 30,
2006 and December 31, 2005 ($ in millions):

		June 30,				December 31,
		2006				2005
Assets
Cash and cash equivalents		$	463.7			$	576.1
Investments			901.3				820.7
Other current assets			783.8				787.3
Total current assets			2,148.8				2,184.1
Investments			16.3				16.0
Total property, plant and equipment, net			1,817.7				1,635.2
Other assets			108.5				107.8
Intangible assets			26.7				23.4
Total assets		$	4,118.0			$	3,966.5
Liabilities
Total current liabilities		$	533.8			$	550.6
Long-term debt			1,506.3				1,411.7
Other non-current liabilities			77.8				89.1
Preferred limited partnership units			114.8				112.1
Total liabilities			2,232.7				2,163.5
Minority interests			263.8				304.6
Partners’ equity			1,621.5				1,498.4
Total liabilities and partners’ equity		$	4,118.0			$	3,966.5

APP-II-1