Sale of Reno Hilton Paves Way for Construction in September

RENO, Nevada -- Grand Sierra Resort Corp. has announced that it has completed the acquisition of the Reno Hilton following final approval from the Nevada Gaming Commission. The company plans to move
Arail view of the planned Grand Sierra Resort and Casino. 
Artist's depiction of the future Grand Sierra Resort.  aggressively to initiate its redevelopment plans that will transform the property into the Grand Sierra Resort and Casino, a 145-acre world-class development featuring hotel-condominiums, residential components, the nation's largest indoor water park, and numerous other complimentary amenities. Construction in the hotel tower is scheduled to begin this September.

"The vision for this development has been two-and-a-half years in the making, and we couldn't be more pleased to receive final approval," said Tom Schrade, president and chief executive officer of Grand Sierra Resort Corp. "Now that we have completed the acquisition, we are well poised to fulfill our vision."

The top eleven floors of the twenty-seven floor building, "The Summit at the Grand Sierra Resort," will be converted into 825 luxury hotel-condominiums, each with spectacular views of the surrounding Sierra Mountains and Reno. Each unit, fully furnished and designed by award-winning designer Dodd Mitchell, boasts custom-designed wet bars, spa-like glass-enclosed bathrooms and upscale leather and suede furniture. With ownership come many resort services and amenities, including exclusive concierge, daily housekeeping, room service, and valet parking. Private elevators will conveniently whisk residents directly to and from their condominium suites.

"We already have signed purchase agreements for over 35% of the hotel condominium units," stated Scott Bayless, executive vice president of Grand Sierra Resort Corp. "This reflects the tremendous enthusiasm that people have shown for this project, and with the current momentum we anticipate that the balance of the units will be sold out quickly."

A Schrade conceived development and a Dodd Mitchell Design, the project's hotel operations will be overseen by newly hired president of hotel operations Michael Carsch. "This is an ambitious project that we know will lead the way for the luxury hotel market in the Reno area," stated Carsch. "Northern Nevada is brimming with wonderful amenities and features and is a perfect place for this exciting venture."

The first phase of the redevelopment project for the Grand Sierra Resort and Casino will include, among other things, the complete renovation of the 1,995-room tower, a complete redesign of the casino floor including new slot product, a VIP player's club and other exciting elements, and several new restaurant venues led by award-winning chefs, including Hollywood's favorite Italian eatery, Dolce. The Grand Sierra Casino will be operated by an affiliate of The Navegante Group, led by chief executive officer and veteran gaming executive Larry Woolf.

Construction of the indoor water park is expected to begin in 2007.

The resort is located in the heart of Reno, only minutes away from 50 golf courses, 18 ski resorts and other outdoor activities including hiking, biking, fishing, hunting, kayaking, and boating.