Key questions and answers from the second quarter fiscal 2008 earnings call conducted by Las Vegas Sands Corp. on July 30, 2008.

Felicia Hendrix (Lehman Brothers): Are there any mall statistics that you can give us following the opening of the Four Seasons mall?

Bill Weidner: They opened Friday. With the combination of the ferry service and more things to see on Cotai resulted in 103,000 visits on Saturday and 101,000 visits on Sunday. It's the combination of increased ferry service and more things to see that really bodes for the future of the attractiveness of the Cotai Strip.

Felicia Hendrix (Lehman Brothers): If you look at the mass market table drop for the Macau properties, they've been declining over the last three quarters. Is there a reason for that and now that you have another mall open, do you expect that to increase going forward?

Brad Stone: The initial indications for July, for example, were going to set a new record for our property in Cotai at the Venetian. When you look at the increase in the ferry business, the fact that we've got the night sailings and all, a month and a half ago we were talking about how to fill the ferries. Now, we're going to be faced at some point with making sure that we are selective on how we market to our own customers because we're reaching capacity on certain days very quickly.
The traffic flows are tremendous. We're working hard to convert traffic throughout the property down to the casino floor. We have more promotional and marketing things to come which we think will supplement as we get people into the property, to get them to play the games and to get them to extend their visitation at the Venetian property.

Felicia Hendrix (Lehman Brothers): Is the increased volume on the ferries driven by demand or you have been promoting ticket prices and things like that?

Brad Stone: It's really been a combination of both. With the demand that we have driven internally, we're probably going to end up scaling back because we're catching up with demand as people become familiar with it and as it became more convenient. We're going to be more selective in how we promote the ferry to our players at the Venetian.

Sheldon Adelson: Within the last few weeks we've started frequency at about every half hour instead of every hour. By the end of August or the beginning of September, we will be running every 15 minutes. Thus we'll have a substantially great capacity in both directions. If we're running 90% in a ferry, the average occupancy for Shunttex Ferry Service has been 70% or 80% over the last decades.
Hence we're very happy with the performance of the ferries. Although we don't want to provide any guidance, July is showing a very positive upward trend in the ferry deliverers.

Celeste Brown (Morgan Stanley): You mentioned you wouldn't be raising equity. Can you discuss how the liquidity would be increased at the parent if you're not issuing equity?

Sheldon Adelson: We want to maintain our flexibility. We see various options out there. We do have quite a bit of flexibility but at this stage of the game I can't get into any of the details because we don't want to upset markets or move markets. However, we're evaluating various alternatives to put additional liquidity in the corporate parent level.

In 1999, we had a slow opening and a slow ramp up because of the construction problems we had with Bovis, the builder and everybody was saying we may need $50 million. Please tell us you're going to put it in. Put it aside in an escrow account and tell us that everything's going to be safe. I said no, I'm not going to do that but I can tell you that the payment will be made. The reason why I didn't do that is because I wanted the market to accept Sheldon Adelson's verbal commitment. The company will not have liquidity problems.

Celeste Brown (Morgan Stanley): The corporate expense in the quarter increased substantially sequentially. Is that sustainable especially given your comments on cutting costs in both Macau and Las Vegas?

Dan Briggs: Looking at second quarter 2008 corporate expense, we're talking about $33.6 million. You've got some incremental legal fees up this quarter which probably won't necessarily be ongoing at the same rate they're at today and there's some other things moving around in there. Effectively, you're not necessarily going to see a change from $25 million to $33 million and have it continue to go in that direction going forward.

Larry Klatzkin (Jefferies): You mentioned that you're looking to go more direct to customers. Can you say what percent of your VIP was direct? Concerning Four Seasons, with the first real intimate product, are you looking to go a very high percentage direct at that and compete with Wynn?

Brad Stone: We're seeing a ramp up in that. Without going to specific numbers, for example, in the month of June we were actually able to double what we were able to produce in the month of May. They're not off large bases but we are growing that business. The Four Seasons is a real positioning opportunity for that. We have an area in the Four Seasons which is about 19 tables. It's not designed to be a junket spot in itself, merely by its size and its connection into the Chinese restaurant there and it's immediately adjacent to the Four Seasons Hotel.
We're going to look to leverage that product differentiation and offer a consumer who wants a more cloistered and intimate experience. The Venetian offers a lot of excitement and fun and huge asset base for a customer to take advantage of and many customers enjoy that. Some customers want to get away from that.
The great thing about the Four Seasons is it really offers that premium customer the best of both worlds. They can be in the intimate settings of the Four Seasons or they can be 100 meters away and be in the action in the arenas and the rooms and the malls of the Venetian. Certainly, we're going to look to take that as a stepping stone forward.
The other thing that we're seeing in the month of July is just an increase in utilization of some of the aircraft that we've been perhaps slow in utilizing. We have a 737 over there, which we are bringing in, small groups from out of the immediate marketplace and we also utilize a Gulf Stream there. Thus we have all the tools to work towards direct play. We also have the ultimate tool in terms of what we believe the Four Seasons will offer, particularly to that non-junket direct play-type customer.

Larry Klatzkin (Jefferies): What's your feeling about the government’s commission cap timing and where you see it happening?

Sheldon Adelson: The performance in the second quarter was based upon our offering 1.35 plus comps and that's as high as anybody else. We can benefit by having the commission capped at 1.25 although we felt it should have been capped at 1.0, including comps. It'll make a material difference between the 1.35 plus comps, whatever that comes to, and what we end up with, the 1.25 cap including comps. We're looking forward to some benefit accruing out of that.
There's something I want to say concerning development in Macau. First of all, the fundamentals of our company have not changed. Contrary to some of the rumors that have been going around, we're moving forward with our development pipeline aggressively. It is acknowledged that the approval for seven and eight, we don't need three because that's the land we already own, has been delayed and we have also done some more redesign.
We've done ground work but we haven't done foundation. There is about $100 million in the financing package so that we could continue site development on seven, eight and three. We've put into the $5 plus billion financing package an accordion feature that will allow us in two phases to take down $1 billion, which is exactly what we did with lots five and six.
Thus we started off to get the pilings done, which take a few hundred million, for seven and eight and then we start on the foundation and by that time the other properties will be open and we'll be able to generate more income and borrow money besides just going on a project financing basis.
Therefore things haven't changed there. It's taken us time to get approval. We're doing some redesign because of the cost of construction of the magnificent design we have. It's high and we're tweaking that design. We're optimistic that we'll be able to get an approval for that in the very near future.

Larry Klatzkin (Jefferies): Do you think that the commission cap is enforceable?

Sheldon Adelson: You've got to look at it from a practical basis. It depends how much the government enforces the law. There's going to be a pressure on the government. It's got to be seriously enforced. At the beginning it'll be enforced. Will somebody find some way around that, I don't know. You never know. However, people know and understand what they're back betting on the line, which if they continue to push it may be the start of breaking the camel's back. They're smart enough businessmen to know they don't want to kill the goose that's laying the golden eggs.
Thus if the government says 1.25 based upon my conversations with a leading junket representative, at least the top ones will abide by it.

Larry Klatzkin (Jefferies): Can you give some indication of Venetian versus Palazzo EBITDA?