Press Release 3

David Strow

LAS VEGAS SUN

Just days after signing a deal with Donald Trump, New Frontier owner Phil Ruffin is closing in on a joint venture to build a $750 million to $800 million casino resort project just north of the New Frontier.

And that could, in theory, could help open the door for development of Ruffin's long-discussed plans for the New Frontier site itself -- a $1 billion, San Francisco-themed casino resort.

Ruffin said this morning he has signed a letter of intent with "a big hotel company" to build the project on the site of the former Silver Slipper casino. That building was taken down in the 1980s by the previous owners of the New Frontier, the land is now a New Frontier parking lot.

Ruffin did not disclose the identity of his potential joint venture partner, saying an announcement could come soon."It's looking pretty good," Ruffin said. "It's a very exciting project. It's just not a done deal yet."

Jack Wishna, President of CPAmerica, Inc. a Mergers & Acquisitions consulting firm that has been working with Ruffin on developing the entire Frontier Hotel & Silver Slipper sites and who put the Trump deal together, said deals with Trump and the unidentified hotelier could change Ruffin's ability to raise funds on favorable terms with additional collateral, more cash flow, and synergistic projects to drive business to the sites.

Ruffin would manage the property's casino, while the partner would run the hotel, said Wishna. Financing would not prove a problem for the company if a deal is finalized, Wishna said.

"It's a very large, publicly held company that wants to fly their flag in Las Vegas," Wishna said. "It's going to be something unique, something that has attraction and lure. I'm not talking about a volcano going off."

The 1,200-room to 1,500-room upscale resort would break ground in early 2003, and could open by 2005. It would be Phase 2 of a three-phase redevelopment of the New Frontier site by Wishna; Phase 1 is Trump Tower Las Vegas, a $300 million, 600-foot luxury condominium tower on Fashion Show Drive. Ruffin would have a 50 percent stake in both projects.

Le Reve, the $1.65 billion casino resort planned by Steve Wynn for the Desert Inn site is directly across Las Vegas Boulevard from the New Frontier site.

Phase 3 would be "City by the Bay," the San Francisco-themed resort Ruffin has said will eventually replace the 50-year-old New Frontier. Gaming analyst Andrew Zarnett of Deutsche Banc Alex. Brown said Ruffin's task of raising the funds could get "slightly easier" with the two projects. Larry Klatzkin, gaming analyst with Jefferies & Co., said the projects would help give Ruffin's proposal some credibility.