Dover Downs Announces Phase VI Casino Expansion Plan

DOVER, Delaware -- Dover Downs Gaming & Entertainment confirmed plans for its Phase VI Casino Expansion. This latest expansion plan is to add nearly 70,000 square feet to the Dover Downs Hotel
Slots area in Dover Downs Racino  & Casino.

 The expansion will feature a stunning new main entrance to the casino, a new gaming floor with room for more than 500 additional slot machines and the new Dover Downs Fire and Ice Lounge - an upscale lounge/nightclub that will seat about 200 guests and provide an exciting venue to see live entertainment or watch sporting events. Plans also include retail space, a coffee shop and three new restaurant options.

"Our latest expansion will add several more critical elements in our plan to keep Dover Downs one of the premier entertainment destinations on the East Coast," said Denis McGlynn, President and Chief Executive Officer of Dover Downs Gaming & Entertainment.

Friedmutter Group was retained as the principal architect for the project late last year and Dover Downs has entered into a construction management agreement with T.N. Ward Company. Both companies are industry leaders in casino and hotel design and construction, having worked on previous projects at Dover Downs, as well as in Atlantic City and Las Vegas. Construction on the $56 million project is expected to begin in June and be complete by the fall of 2008.

The Company has amended its existing credit agreement and increased its unsecured line of credit to $125 million to provide the financing necessary for the casino expansion.

The Company is progressing on schedule with its expansion of the Dover Downs Hotel. That expansion will more than double the number of hotel rooms to 500 including eleven spa suites and add a luxurious 6,000 square foot spa to the Dover Downs Hotel.