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Tropicana Entertainment Issues Preliminary Business Plan that Would
Serve as a Basis for a Chapter 11 Plan of Reorganization
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LAS VEGAS - November 10, 2008 - Tropicana Entertainment, LLC today posted to its website a summary of its preliminary business plan which would serve as a basis for a Chapter 11 plan of reorganization. The plan emphasizes internally funded operational improvements and high-priority capital investments. 

“The summary is intended to give our constituents timely insight as to the performance of our properties as well our current thinking about what we need to do to capitalize on our widely recognized brand name and position Tropicana as the high quality, value priced competitor in our markets,” said Tropicana CEO Scott C. Butera. 

Butera said that the plan addresses all of the properties in Tropicana’s equity portfolio without regard to the status of operational control or potential property sales. As such, he emphasized that the inclusion of the company’s New Jersey, Indiana and other properties is not meant to indicate the company’s position with respect to the dispositions of those assets. 

The plan estimates that the 11 Tropicana properties will produce 2008 net revenue of $995 million and EBITDA of $129 million. The plan projects $64 million in capital expenditures from internally generated cash, but notes that performance improvements could accelerate if the company can acquire additional capital resources to support its post-Chapter 11 business. 
 

Tropicana Entertainment, together with certain non-Debtor affiliate subsidiaries, is a large and diversified, privately-held owner and operator of 11 casinos in the United States

Together, the 11 properties offer approximately 540,000 square feet of gaming space with 415 tables(a) and 12,800 slots, and more than 8,200 hotel rooms, and employ over 7,000 full- and part-time employees

  1. Belle of Baton Rouge, Baton Rouge, LA
  2. Tropicana Express, Laughlin, NV
  3. River Palms, Laughlin, NV
  4. MontBleu, South Lake Tahoe, NV
  5. Tahoe Horizon, South Lake Tahoe, NV
  6. Vicksburg Horizon, Vicksburg, MS
  7. Lighthouse Point, Greenville, MS
  8. Jubilee, Greenville, MS
  9. Tropicana Las Vegas, Las Vegas
  10. Casino Aztar, Evansville Evansville, IN (operated by an attorney-in-fact)
  11. Tropicana Atlantic City, Atlantic City, NJ (operated by trustee/conservator)

“Given the uncertain state of capital markets, our plan is focused on improvements that can be internally generated without reliance on outside funds,” Butera asserted. “Initially, our efforts will center on areas where there are immediate returns on investment ranging from improved slot products and property configurations to normalized labor practices, consolidated back room operations and enhanced restaurant menus and food quality.

“We will be emerging into one of the most difficult markets for gaming and hospitality services ever experienced by the industry,” Butera said. “The key for us will be to stabilize our revenue base and grow profits through aggressive cost management; strategic investments in products, services and facilities; targeted customer development and retention programs; and a more motivated and service-driven staff. 
"As we make progress in these areas, Tropicana ought to be well positioned to take advantage of funding and other opportunities when capital markets improve,” Butera concluded. 

Forward Looking Statements 
This press release contains forward-looking statements regarding Tropicana’s financial results, business prospects, business plans and estimates of future costs and operating results. These forward-looking statements are based on currently available competitive, financial and economic data and management’s views and assumptions regarding future events. This press release addresses the potential future operations of all of Tropicana’s gaming properties, including the Tropicana Casino and Resort in Atlantic City, New Jersey (the "Tropicana Atlantic City"), which, as noted below, the company does not control. The inclusion of each of the company’s gaming properties in the business plan is for illustrative purposes only and does not purport to be indicative of any decision by the company to seek to sell or hold and operate a particular property. 

As noted above, the estimates contained in the press release include the Tropicana Atlanta City. Prior to December 12, 2007, Tropicana controlled Adamar of New Jersey, Inc. (“Adamar”), which owns the principal assets making up the Tropicana Atlantic City. However, on December 12, 2007, the New Jersey Casino Control Commission (the “NJ Commission”) denied Adamar’s application for plenary authorization as a casino holding company and declined to renew its existing casino license. Because it denied Tropicana’s application for plenary authorization, the NJ Commission rendered operative an interim casino authorization trust ("ICA Trust") formed in October 2006 to hold the capital stock of Adamar. Upon the ICA Trust becoming operative, a previously appointed trustee under the ICA Trust, former New Jersey State Supreme Court Justice Gary S. Stein, was empowered to manage the operations of the Tropicana Atlantic City. 
The NJ Commission’s refusal to renew Adamar’s license meant that, in addition to vesting management of the Tropicana Atlantic City in a trustee, the NJ Commission was authorized to appoint a conservator for Adamar. On December 19, 2007, the NJ Commission also appointed Justice Stein as conservator of Adamar. We sometimes refer to Justice Stein as the “Trustee/Conservator.” Consequently, the capital stock of Adamar is controlled by the ICA Trust and the Tropicana Atlantic City is managed by Justice Stein. Adamar is not a party to Tropicana’s bankruptcy filings. Tropicana has appealed the NJ Commission’s ruling and the matter is scheduled to be heard by the New Jersey Supreme Court on November 17, 2008. As a result of the foregoing actions, Tropicana does not control the Tropicana Atlantic City and does not have access to financial information regarding the operation of the Tropicana Atlantic City by the Trustee/Conservator. As noted above, the press release assumes the company regains control of the Tropicana Atlantic City. In addition, the estimates contained in the press release include the Tropicana Atlantic City and such estimates are based solely on publicly available information concerning Tropicana Atlantic City's past and current operations and various assumptions by management regarding the Atlantic City gaming market and the operations of the Tropicana Atlantic City. 

Forward-looking statements are inherently uncertain, particularly in light of the current worldwide financial and credit crisis, and potential or current creditors and investors must recognize that actual results will differ from those expressed or implied in the press release and the forward-looking statements contained therein. Consequently, no representations or warranties are made as to the accuracy or reasonableness of the estimates set forth in the press release or management’s assumptions regarding the business and its future results and operations. The company expressly cautions readers not to place undue reliance on the estimates set forth in the press release and any forward-looking statements contained therein. 

Among the factors that could cause Tropicana’s actual results to differ from those set forth in the press release include, but are not limited to, risks associated with operating as a debtor-in-possession in bankruptcy, the company’s inability to regain control of Tropicana Atlantic City, the sale or disposition of one or more of the company’s gaming properties, competition in the casino/hotel and resorts industries, the company’s dependence on existing management, levels of travel, leisure and casino spending and changes in gaming laws or regulations. In addition, the company’s results may also be affected by general factors, such as economic conditions, political developments, interest and inflation rates, accounting standards, taxes and laws and regulations in markets where the company competes. A further list and description of risks, uncertainties, and other matters can be found in the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2007. The company is under no obligation, and expressly disclaims any obligation, to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. 

About Tropicana Entertainment, LLC 
Tropicana Entertainment, LLC, an indirect subsidiary of Tropicana Casinos and Resorts, is one of the largest privately held gaming entertainment providers in the United States. The company operates 540,000 square feet of casino space with 15,000 slot machine positions. With more than 11,000 employees and 8,300 hotel rooms at its properties, it produces in excess of $1.2 billion annual revenue. More information is available at www.tropicanacasinos.com. None of the information contained on the company's website shall be deemed incorporated by reference or otherwise included herein. 

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Contact:

Hud Englehart
513.533.4800 
 

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Also See: Tropicana Entertainment Files for Chapter 11 Protection Following Fallout from Atlantic City Casino Loss; Expects to Maintain Current Staffing Levels at Nine Casino and Resort Properties / May 2008
Tropicana Provides Update on Atlantic City License; Company intends to repay senior debt with proceeds of potential sale of its Tropicana Atlantic City property / December 2007
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