Tropicana Entertainment announces plans for land based gaming development at Tropicana Evansville

EVANSVILLE -- Tropicana Entertainment announced today its plans for a land based casino development project at its Tropicana Evansville, Indiana property. The development project envisions an approximately 75,000 sq. ft. single-level casino and entertainment facility, at an estimated cost of approximately fifty million ($50,000,000.00) dollars. The new casino would be situated on land owned by Tropicana between its existing hotels, Tropicana Evansville Hotel and the LeMerigot Hotel, and would replace Tropicana's current riverboat casino.

In conjunction with the announcement of the development project, the City of Evansville and Tropicana have entered into a non-binding letter of intent ("LOI") that outlines the scope of the project and proposed lease amendments to the lease agreement (the "Lease") between Tropicana Evansville and the City of Evansville Redevelopment Commission ("Evansville Redevelopment Commission") to accomplish the development of Tropicana Evansville. The principal terms of the LOI provide that in exchange for the $50 Million development project and an aggregate $25 Million pre-payment of rent to the City of Evansville, upon completion of the project Tropicana Evansville would receive $20 Million in development credits in the form of Lease rent credits, and the Tropicana Evansville Lease options would be extended for an additional 15 years through December 31, 2055.