NEW YORK, New York---January 22, 1998--

As the notion of legalized gaming on Governors' Island attracts interest from the public and private sectors, Bear, Stearns Co. Inc. lodging and gaming analyst Jason Ader estimates the value of the New York City legalized casino gaming market at $2.6 billion annually. Ader says one major casino on Governors' Island could gross approximately $340 million on an annual basis.

"Currently, major legal barriers exist blocking legalized gaming in New York City and State," Ader notes. "But if state constitutional
changes were enacted by the legislature and people of New York State, legalized gaming in New York City would open up the third largest
gaming market in the nation, behind Atlantic City, a $3.8 billion gaming market, and Las Vegas, where gaming is valued at $3.5 billion a
year."

The Bear Stearns study assumes gaming would be legal in all five boroughs of New York City, and that local, greater metro area and
tourist populations would have unconstrained access to name-brand casinos. Factored in to the study are competitive forces from
legalized gaming in New Jersey and Connecticut, as well as gaming day-cruises that depart from Manhattan.

     Gaming on Governors' Island

Ader of Bear Stearns estimates a casino on Governors' Island would gross approximately $340 million annually. That number assumes a 24-hour Governors' Island casino could be reached by ferry service from four New York City locations and wouldoffer 3,500 gaming positions, defined as the number of gaming devices plus the number of seats at gaming tables, to an average of 15,750 visitors per day, for a total of 5.75 million casino visits per year.

"Significant infrastructure issues would confront a Governors' Island casino," Ader notes. "Ferry service from points in New York City to Governors' Island, for example, would be quite expensive to operate. Without substantial financial support from the public sector, the cost of ferry service would cut deeply into casino margins."

For a complete copy of Bear Stearns' New York City Gaming Estimate, call Noelle Whiting at (212) 272-4320.

Bear, Stearns  Co. Inc., a leading worldwide investment banking and securities trading and brokerage firm, is the major subsidiary of
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