PRESS RELEASE

HARRISBURG: The Pennsylvania Gaming Control Board announced that as of today it has received four applications for the two available Category 3 licenses permitting the operation of up to 500 slot machines at a resort hotel. Applications were to be postmarked no later than June 29, 2007.

The following submitted applications:

• Bushkill Group, Inc. d/b/a Fernwood Hotel & Resort
  Fernwood Hotel & Resort and The Villas at Tree Tops and Fairway is a 440 acre hotel resort located on Route 209 in Bushkill, Monroe County.

• Valley Forge Convention Center Partners, L.P.
  The Valley Forge Convention Center has 488 hotel rooms on 850,000 square feet of property and is located at 1160 First Avenue in King of Prussia, Montgomery County.

• Vacation Charters, Ltd., a/k/a the Resort at Split Rock
  The Resort at Split Rock offers 557 rooms, which vary from standard hotel rooms to cottages and suites, is located at One Lake Drive in Lake Harmony, Carbon County.

• CE-Palace, LP, a/k/a the Palace Inn
  The Palace Inn has 278 guest rooms and is located at the intersection of William Penn Highway and Mosside Boulevard in Monroeville, Allegheny County.

The Pennsylvania Race Horse Development and Gaming Act permits the Board to award up to two licenses to a well-established resort hotel in order to establish an additional patron amenity. To qualify, the resort must have no fewer than 275 guest rooms under common ownership at the time of application and already offer substantial year-round recreational guest amenities on its premises including but not limited to:

• Sports and recreational activities such as a golf course or driving range
• Tennis courts
• Swimming pools or a water park
• A health spa
• Meeting and banquet facilities
• Entertainment facilities
• Restaurant facilities
• Downhill or cross-country skiing facilities
• Bowling lanes
• Movie theaters

The Act, along with regulations established by the Board, restricts who can enter the gaming area. These include registered overnight guests, patrons of one or more amenities, authorized employees and other persons authorized by the Board, and individuals holding a valid seasonal or year-round membership which has been approved by the Board and entitles the individual to use one or more of the amenities at the resort.

The Board will establish a schedule of public input hearings within the municipality in which each applicant plans to locate the gaming facility. PGCB staff will also begin comprehensive background investigations on all applicants and on each individual involved in the application. The Board will then hold licensing hearings to determine the suitability of each applicant to hold a license.

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