| LAS VEGAS, Dec. 5, 2000 - Fitzgeralds Gaming Corporation announced
today that it has reached an agreement to sell the Fitzgeralds Casino properties
in Las Vegas, Nevada; Black Hawk, Colorado; and Tunica, Mississippi; to
an affiliate of the Majestic Star Casino of Indiana. Majestic Star
Casino is wholly-owned by Don H. Barden. The purchase price will
be $149 million in cash plus assumption of certain liabilities. The
Company will also place its Fitzgeralds Casino, Reno on the market.
�We have continued to improve the performance of our properties,� said
Phil Griffith, Chairman and majority shareholder. �We recently announced
a record third quarter and year-to-date Adjusted EBITDA (earnings before
interest, tax, depreciation and amortization, excluding restructuring expenses)
of $9,574,000 and $26,572,000, respectively, which represent increases
over the previous reporting periods of 24.0% and 12.4%, respectively.�
Griffith added, �Fitzgeralds has been an important part of my life since
founding the Company in 1984 along with senior executives Paul Manske,
Max Page and Mike McPherson. We wanted to be certain that a potential
buyer would continue the legacy we�ve built during the last 16 years including
the recognition of the value of the thousands of team members presently
employed by our Company. Majestic Star will be making their first
entry into the Nevada, Colorado and Mississippi gaming markets. They
have recognized the excellent potential Fitzgeralds provides and I am certain
they will continue the positive momentum we have achieved during the last
several years. The Majestic Star plans to maintain the Fitzgeralds
brand name and, with the exception of the four senior executives, intends
to retain existing employees with all seniority and benefits intact.�
| �The senior executives have worked together for
many years in virtually all aspects of the gaming industry,� Griffith continued.
�Along with our current Nevada, Colorado and Mississippi interests, we
developed and managed one of the first and most successful riverboat casinos
in the country, the Empress Casino in Joliet, Illinois, opened the first
Indian casino in New York, Turning Stone Casino, for the Oneida Indian
Nation and opened and managed the Cliff Castle Casino in Arizona for the
Yavapai Apache Tribe. In addition, our Company previously owned Harolds
Club and Nevada Club in Reno, which we sold to Harrahs in 1999. We
are now excited about focusing on our various other ventures as well as
looking for new opportunities.�
The sales, which are contingent on, among other things, Bankruptcy Court
approval, licensing and financing, and are consistent with the reorganization
that the Company has negotiated with a committee representing its noteholders.
In that regard, today the Company, together with its subsidiaries, each
commenced cases under Chapter 11 of the Bankruptcy Code in the United States
Bankruptcy Court for the Northern District of Nevada. The bankruptcy
cases were commenced with the approval of the holders of a majority in
interest of the Company�s 12.25% Senior Secured Notes under the terms of
an Agreement Regarding Pre-Negotiated Restructuring. Additional details
concerning these matters are contained in the Company�s current report
on Form 8-K to be filed with the Securities and Exchange Commission and
in documents filed and to be filed with the Bankruptcy Court.
The Company is a diversified multi-jurisdictional gaming holding Company
that owns and operates four Fitzgeralds-brand casino-hotels, located in
downtown Las Vegas, Nevada (�Fitzgeralds Las Vegas�), Reno, Nevada (�Fitzgeralds
Reno�), Tunica, Mississippi (�Fitzgeralds Tunica�) and Black Hawk, Colorado
(�Fitzgeralds Black Hawk�).
The Private Securities Litigation Reform Act of 1995 provides a �safe
harbor� for forward-looking statements. |
Country�s Only African American
Casino
Owner Expands Company
GARY, Ind., Dec.5, 2000 - Majestic Star Casino announced
today that its affiliate Majestic Investor, LLC. (Majestic) entered into
a definitive purchase agreement with Fitzgeralds Gaming Corporation to
purchase three of Fitzgeralds casinos. Majestic plans to purchase Fitzgeralds
casinos in Las Vegas; Tunica, Miss.; and Black Hawk, Colo., for $149 million
in cash plus assumption of certain liabilities. Majestic Star Casino
commenced operations in 1996 and is wholly owned by Don H. Barden. Majestic
currently operates a casino riverboat on Lake Michigan in Gary, Ind., and
is one of only a handful of privately held casino companies in the United
States. Majestic is the only casino company in the world wholly owned by
an African American.
�With the addition of these three casinos, Majestic will
operate in three of the top five gaming markets in the country,� said Barden.
�The Fitzgeralds purchase is the first step in our plan to grow Majestic
Star beyond our home in Indiana. I want to thank my team at Majestic Star
Casino for bringing this project to fruition and making this exciting opportunity
a reality. I look forward to working with the many fine employees at these
three great Fitzgeralds properties. Together we�re going to build a highly
competitive national casino brand with 4,300 slots, 120 table games, 1,145
hotel rooms, and 3,800 employees.�
Fitzgeralds, Las Vegas Casino-Hotel anchors
one end of the world famous downtown Fremont Street Experience and includes
1,050 slot machines, 25 table games, a sportsbook, keno lounge, 638-room
hotel, five restaurants and 978 employees.
Fitzgeralds Tunica Casino-Hotel is
located on a 121-acre site approximately 30 miles south of Memphis, Tenn.
The facility features a 507- room hotel, 405-space covered parking garage,
1,215 slots, 34 table games, four restaurants, two bars, a special events
center and 1,152 employees.
Fitzgeralds Black Hawk Casino is located
approximately 45 minutes west of Denver and features 586 slots, six tables,
a restaurant, lounge, entertainment area and a 400-space valet parking
garage. The property employs 365 team members.
�Majestic will be making their first entry into the Nevada,
Colorado and Mississippi gaming markets,� said Phil Griffith, Fitzgeralds
Chairman and majority shareholder. �We wanted to be certain that a potential
buyer would continue the legacy we�ve built during the last 16 years including
the recognition of the value of the thousands of team members presently
employed by our company. They have recognized the excellent potential Fitzgeralds
provides and I am certain they will continue the positive momentum we have
achieved during the last several years.�
Michael Kelly, COO-CFO
Majestic Star Casino,
219-977-7823
http://www.majesticstar.com |
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