Fontainebleau Resorts Announces Definitive Agreement with Publishing and Broadcasting Limited (PBL)

LAS VEGAS, April 16 /PRNewswire/ -- Fontainebleau Resorts LLC, a Las Vegas-based resort and casino developer, today announced it had entered into a definitive agreement with Publishing & Broadcasting Limited (PBL), one of Australia's largest gaming and entertainment corporations. Under the agreement, PBL will make a $250 million investment in Fontainebleau Resorts in exchange for a 19.6% interest in the company.

Fontainebleau Resorts is developing Fontainebleau-Las Vegas, a $2.8 billion, 63-story world-class destination resort located on 24.5 acres on the Las Vegas Strip, as well as re-creating the legendary Fontainebleau Miami Beach with a spectacular $500 million makeover. The Las Vegas project is expected open in fall 2009, and the Miami Beach project in full in summer 2008.

Fontainebleau-Las Vegas will feature a 100,000-square-foot casino and 3,889 luxury hotel rooms, suites and condominium-hotel units, as well as signature restaurants, internationally renowned nightclubs, a stunning spa and state-of-the-art meeting and convention facilities, in a contemporary design. The 16-acre oceanfront complex in Miami Beach will include more than 1,500 luxury guest rooms and suites, a 40,000-square-foot spa, 11 restaurants, nightclubs and lounges, expansive poolscape and cabana area and approximately 200,000 square feet of meeting and convention space. These two landmark projects are intended to serve as the growth platform for the international expansion of the Fontainebleau brand.

Fontainebleau Resorts was co-founded in 2005 by its Executive Chairman and majority owner Jeffrey Soffer, principal of the Turnberry group of companies, one of the nation's premier real estate development firms, and CEO Glenn Schaeffer, former President and Chief Financial Officer of Mandalay Resort Group.

"We are extremely pleased to have such a renowned industry leader as James Packer's PBL as our cornerstone investor," Mr. Soffer said. "We are excited about this strategic alliance between our two companies and are confident this partnership will lead to mutually beneficial growth opportunities."

Commenting on the investment, PBL Executive Chairman James Packer said he was excited to be investing in an organization led by Jeffrey Soffer and Glenn Schaeffer, two individuals with impeccable development and operational credentials.

"This transaction provides PBL Gaming with a first-class entrance into the U.S. casino resort market, in particular, the renowned Las Vegas Strip," Mr. Packer said. "Jeff Soffer's Turnberry organization has an enviable record in America of developing some of the most exciting tourism and residential projects, whilst Glenn Schaeffer brings a wealth of casino resort experience and expertise from his successful career at Mandalay Resort Group."

Completion of the transaction is subject to customary conditions precedent and is expected to close in May 2007.

About PBL

Publishing and Broadcasting Limited (PBL) is one of Australia's largest diversified gaming and entertainment groups. Its market capitalization of more than $11 billion places it among the top 25 companies listed on the Australian Stock Exchange. Led by Executive Chairman James Packer, the group's core businesses are: gaming and entertainment; television production and broadcasting; magazine publishing and distribution; and strategic investment in key digital media and entertainment businesses. PBL has significant gaming experience with the following interests in gaming businesses:

  -- it owns and operates two of Australia's leading gaming and
     entertainment complexes, Crown Entertainment Complex in Melbourne and
     Burswood International Resort and Casino in Perth;
  -- it is a major shareholder (holding approximately 41%) of Melco PBL
     Entertainment, which is listed on NASDAQ and is currently building the
     "Crown Macau" and "City of Dreams" gaming projects in Macau; and
  -- it owns a 50% interest in Aspinall's, a UK gaming and entertainment
     company that owns and operates casinos in London and regional areas of
     the UK.

  About Fontainebleau Resorts

Fontainebleau Resorts LLC is led by Executive Chairman Jeffrey Soffer, who also serves as CEO of Turnberry, Ltd., and by its CEO and President, Glenn Schaeffer, who formerly served as President and CFO of Mandalay Resort Group. The Turnberry companies have to their credit the development of more than $7 billion in commercial and residential property, including the Aventura Mall and Turnberry Isle Resort & Club in South Florida, Turnberry Place, The Residences at MGM Grand in Las Vegas, and The Residences at Atlantis on Paradise Island, Bahamas. Mr. Schaeffer is widely regarded as one of the top gaming executives in the United States and one of the key figures who made Las Vegas what it is today. Under his leadership, Mandalay Resort Group transformed the south end of the Las Vegas Strip into an upscale, must-see destination for the convention and leisure markets.

Forward-Looking Statements

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall any securities be offered or sold to any person in any jurisdiction in which such an offer, solicitation, purchase or sale would be unlawful. Various statements in this press release constitute forward-looking statements. These statements include, among other things, discussions of our business strategy and expectations concerning investments, construction plans and future operations. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "would," "could," "believe," "expect," "anticipate," "estimate," "intend," "plan," "continue" or the negative of these terms or other comparable terminology. Forward-looking statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, timing, performance or achievements to be materially different from any future results, levels of activity, timing, performance or achievements expressed or implied by these forward-looking statements. Therefore, we caution you not to place undue reliance on our forward-looking statements.