French Lick Announces Modified Dutch Auction Tender Offer for Notes

FRENCH LICK, Ind., March 31 /PRNewswire/ -- French Lick Resorts & Casino, LLC and French Lick Resorts & Casino Corp. (the "Purchasers") today announced that they were offering to purchase for cash, upon the terms and subject to the conditions set forth in the Offer to Purchase, dated March 31, 2008 (the "Offer to Purchase"), and the related Letter of Transmittal (collectively, the "Offer"), up to $150,000,000 aggregate principal amount (the "Offer Amount") of the outstanding 10-3/4% First Mortgage Notes due 2014 (the "Notes") co- issued by the Purchasers, at a price not less than $730 nor greater than $780 per $1,000 principal amount, plus accrued and unpaid interest thereon to, but not including, the date that payment for such Notes is made by the Purchasers (the "Tender Offer Consideration") at a purchase price determined by the "Modified Dutch Auction" procedure described below. The Offer will expire at 12:00 Midnight, on April 25, 2008, unless extended (as the same may be extended, the "Expiration Time").

In addition, each holder whose Notes are accepted for payment pursuant to the Offer will be entitled to receive in respect of each Note accepted for payment which was validly tendered by such holder prior to 5:00 p.m., New York City time, on April 11, 2008 (as the same may be extended, the "Early Tender Time") a premium of $20 per $1,000 principal amount of such purchased Notes (the "Early Tender Premium"). The Total Consideration is the sum of the Tender Offer Consideration and the Early Tender Premium. Only Notes validly tendered prior to the Early Tender Time will be eligible to receive the Total Consideration.

Under the "Modified Dutch Auction" procedure, upon the terms and subject to the conditions of the Offer, the Purchasers will accept tenders under the Offer in the order of lowest to highest tender prices specified by tendering holders of the Notes in the Offer, and will select the single lowest price per $1,000 principal amount of Notes (the "Purchase Price") to enable the Purchasers to purchase an amount of Notes equal to the Offer Amount or, if less than the Offer Amount of Notes is validly tendered (and not validly withdrawn), all Notes so tendered. Under the Offer, the Purchasers will pay the same Purchase Price for all Notes accepted for payment that were validly tendered at or below the Purchase Price and not validly withdrawn, upon the terms and subject to the conditions of the Offer, including the proration terms thereof. Consequently, all holders whose Notes are accepted for payment in the Offer will receive the same Tender Offer Consideration, being the Purchase Price per Note plus accrued and unpaid interest thereon to, but not including, the date that payment for such Notes is made by the Purchaser. However, holders will only be entitled to receive the Early Tender Premium, and hence the Total Consideration, in respect of Notes accepted for payment that were validly tendered in the Offer prior to the Early Tender Time.

Upon the terms and subject to the conditions of the Offer, if the Offer is fully subscribed the Purchasers will purchase the Offer Amount, an amount that represents 56% of the principal amount of Notes currently outstanding. In the event that the amount of Notes validly tendered pursuant to the Offer prior to the Expiration Time (and not validly withdrawn) at or below the Purchase Price exceeds the Offer Amount then, subject to the terms and conditions of the Offer, the Purchaser will accept for purchase Notes validly tendered at prices below the Purchase Price on a pro rata basis from among such tendered Notes up to the Offer Amount in aggregate (with appropriate adjustments to avoid purchases of Notes in a principal amount other than an integral multiple of $1,000).

Tenders of Notes made prior to the Early Tender Time may not be validly withdrawn after the Early Tender Time, and tenders of Notes made after the Early Tender Time may not be validly withdrawn at any time, unless the Purchasers reduce the amount of the Tender Offer Consideration, the Early Tender Premium or the principal amount of Notes subject to the Offer or is otherwise required by law to permit withdrawal. Under such circumstances, previously tendered Notes may be validly withdrawn until the expiration of ten business days after the date that notice of such reduction or requirement is first published or given or sent to holders by the Purchasers. In the event of a termination of the Offer, the Notes tendered pursuant to the Offer will be promptly returned to the tendering holders.

It is expected that the Notes purchased in the Offer by the Purchaser will be cancelled following completion of the transaction.

The Purchasers have retained J.P. Morgan Securities Inc. to act as the Dealer Manager for the Offer. Persons with questions regarding the Offer should contact J.P. Morgan Securities Inc. at (212) 270-1477, Attention: Michael Rutherford. Requests for documentation may be directed to MacKenzie Partners, Inc., the Information Agent, which can be contacted at (212) 929-5500 (collect) or (800) 322-2885 (toll free).

This press release is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell the Notes. The offers to buy the Notes only are being made pursuant to the offer documents, including the Offer to Purchase that the Purchasers are distributing to holders of Notes. The Offer is not being made to holders of Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In any jurisdiction in which the Offer is required to be made by a licensed broker or dealer, they shall be deemed to be made by J.P. Morgan Securities Inc. on behalf of the Purchasers.

Forward-Looking Statements

This press release contains forward-looking statements" which can be identified by the use of forward-looking terminology, such as "may," "intend," "will," "expect," "anticipate," "should," "plans to," "estimate" or "continue" or the negative thereof or other variations thereon or comparable terminology. In particular, any statement, express or implied, concerning future operating results or the ability to generate revenues, income or cash flow to service the Purchasers' debt are forward-looking statements. Although the Purchaser believes that the expectations will prove to be correct, all forward-looking statements are expressly qualified by such cautionary statements, and the Purchaser undertakes no obligation to update such forward-looking statements. Although these statements are based upon assumptions considered to be reasonable, they are subject to the foregoing risks and uncertainties as well as the risks and uncertainties that are described more fully in the section titled "Risk Factors" in the Annual Report of French Lick Resorts & Casino, LLC. Accordingly, no assurance can be given that the results anticipated or implied by such forward-looking statements will be achieved. Noteholders are cautioned not to place undue emphasis on our forward-looking statements.