NEW YORK and LAS VEGAS, June 18, 2007 - Morgans Hotel Group Co. (Nasdaq: MHGC - News; "MHG") and Boyd Gaming Corporation (NYSE: BYD - News; "Boyd") today announced their development and design plans for the new Mondrian and Delano hotels at Echelon in Las Vegas. A world-class team of designers and architects has been appointed to lead the project.

MHG and Boyd have named Chad Oppenheim as design architect, Klai Juba as executive architect, Marcel Wanders as interior designer for Mondrian, Piet Boon as interior designer for Delano and Cagley and Tanner as executive interior designer. Together, this celebrated team of designers and architects will design and develop the hotels to bring a new level of style and sophistication to Las Vegas.

"We are incredibly excited about this project and the talented design team we've assembled," said Ed Scheetz, President and Chief Executive Officer of MHG. "The level of creativity and experience each brings to this project is perfectly matched with MHG's goal to set a new standard for groundbreaking hotels."

"The Delano and Mondrian are iconic hotel brands and will help define Echelon," said Bob Boughner, President and Chief Executive Officer of Boyd Gaming's Echelon Resorts. "Their presence will add a fresh sensibility to the Las Vegas hotel experience."

About the Designers

Oppenheim Architecture+Design is a full service architecture, interior design and urban planning firm located in Miami, Florida. The firm, founded by Principal Chad Oppenheim, has extensive experience in world class hospitality, residential and mixed-use design.

Klai Juba Architects has been part of the creation of some of the most notable and successful resorts on the Las Vegas strip for more than 25 years. The firm has led highly successful projects in Las Vegas including the Four Seasons Hotel, Sky Las Vegas, and Mandalay Bay and is currently leading the expansion and renovation project at MHG's Hard Rock hotel in Las Vegas.

Marcel Wanders, Elle Decoration's "Designer of the Year" in 2006, founded the design label Mooi in 2000. His designs run from mass-produced objects to limited editions and unique pieces. Amongst Wanders' most recent interior projects include MHG's Miami Mondrian and the-soon-to-be opened Villa Moda store in Bahrain and a private residence in Jakarta.

Piet Boon is one of the Netherlands' most high profile designers, with his award-winning work seen everywhere from the world's finest homes and hotels to museum exhibitions on multiple continents. Piet's work includes fashion shops, restaurants, public space and bungalows in Hof van Saksen, the biggest luxury resort of the Netherlands, beach houses on Bonaire, floating villas, Hotel Provencal in Southern France and a winery in Tuscany.

William A. Richardson Builders, headed by Las Vegas development veteran Bill Richardson, has been retained to provide preconstruction consulting and estimating services.

As announced in January 2006, MHG and Boyd will develop a Delano and Mondrian at Echelon through a 50/50 joint venture. The new Mondrian and Delano will feature approximately 860 and 550 rooms respectively, with a diverse collection of rooms, suites, lofts and bungalows. Each hotel will feature its own porte-cochere, lobby, destination restaurants, nightlife venues, pools and gardens and will have direct access to the gaming, retail, dining and entertainment offerings of Echelon. Delano will boast a lobby bar and one of Morgans Hotel Group's historically successful restaurants, and amenities including a spa and fitness center, private pool and recreation area. Mondrian will include an innovative nightlife venue, private pool and meeting and conference space to appeal to both business and leisure guests. The expected development cost for the project is approximately $950 million.

Spanning 87 acres on the Las Vegas Strip, Echelon will feature approximately 5,000 hotel rooms, 750,000 square feet of convention and meeting space, two live entertainment venues, 30 dining and nightlife venues, and a 140,000-square-foot casino, all within a lushly landscaped resort setting. Echelon is planned to open in the third quarter 2010.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.