ATLANTIC CITY, N.J.--(BUSINESS WIRE)--March 28, 1996 -- Griffin Gaming & Entertainment, Inc. (AMEX:GGE) today announced plans to develop a major addition to its Resorts Casino Hotel in Atlantic City. The multi-year expansion project will be built on the recently acquired 4.4 acres of land adjacent

ATLANTIC CITY, N.J.--(BUSINESS WIRE)--March 28, 1996 -- Griffin Gaming & Entertainment, Inc. (AMEX:GGE) today announced plans to develop a major addition to its Resorts Casino Hotel in Atlantic City. The multi-year expansion project will be built

on the recently acquired 4.4 acres of land adjacent to Resorts on the Boardwalk. The addition will include up to 700 new hotel rooms, 70,000 square feet of casino space and a 2,000-space parking garage and transportation center.

The Company stated that, subject to receipt of the necessary planning permits and regulatory approvals, it plans to break ground in fall 1996 on the infrastructure necessary to support the full expansion. Phase I of the construction is expected to consist of 500 new hotel rooms and 50,000 square feet of casino floor space, along with the new garage and transportation center. The casino will include approximately 1,800 slot machines and 40 table games. Construction costs for the initial phase of the project (including the structure and enclosure for the remaining phases) are currently estimated at approximately $200 million, expected to be financed from internal sources, as well as the capital markets.

Merv Griffin, Chairman of the Board, stated, "Our project will be the first new casino hotel to be built in Atlantic City since 1990, returning Resorts to its historic position as the 'first game in town' and dramatically accelerating the resurgence of Atlantic City and the Boardwalk."

"I know a little bit about entertainment," Griffin said, "and the new Merv Griffin's Resorts will redefine the word 'entertainment' in Atlantic City."

Griffin noted that the Company intends to link its existing casino hotel with the new project in a seamless fashion, creating a spectacular new entry on the Boardwalk and injecting new vitality into its present facility.

Company President and Chief Executive Thomas Gallagher stated that the Company is proceeding rapidly with the development of the final details of its expansion plan. "We plan to begin construction in the fall of 1996 in order to minimize disruption during the peak summer seasons. The garage is expected to open by May 1997, and construction of the casino and hotel rooms should continue concurrently with a targeted opening date of June 1998."

Gallagher continued, "Our main consideration is to build a property that will maximize the value of this Company for its shareholders. Our strong financial position will allow us to proceed with the timing and scope of our project in a way that takes the best advantage of the opportunity it represents."

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The Company stated that, subject to receipt of the necessary planning permits and regulatory approvals, it plans to break ground in fall 1996 on the infrastructure necessary to support the full expansion. Phase I of the construction is expected to consist of 500 new hotel rooms and 50,000 square feet of casino floor space, along with the new garage and transportation center. The casino will include approximately 1,800 slot machines and 40 table games. Construction costs for the initial phase of the project (including the structure and enclosure for the remaining phases) are currently estimated at approximately $200 million, expected to be financed from internal sources, as well as the capital markets.

Merv Griffin, Chairman of the Board, stated, "Our project will be the first new casino hotel to be built in Atlantic City since 1990, returning Resorts to its historic position as the 'first game in town' and dramatically accelerating the resurgence of Atlantic City and the Boardwalk."

"I know a little bit about entertainment," Griffin said, "and the new Merv Griffin's Resorts will redefine the word 'entertainment' in Atlantic City."

Griffin noted that the Company intends to link its existing casino hotel with the new project in a seamless fashion, creating a spectacular new entry on the Boardwalk and injecting new vitality into its present facility.

Company President and Chief Executive Thomas Gallagher stated that the Company is proceeding rapidly with the development of the final details of its expansion plan. "We plan to begin construction in the fall of 1996 in order to minimize disruption during the peak summer seasons. The garage is expected to open by May 1997, and construction of the casino and hotel rooms should continue concurrently with a targeted opening date of June 1998."

Gallagher continued, "Our main consideration is to build a property that will maximize the value of this Company for its shareholders. Our strong financial position will allow us to proceed with the timing and scope of our project in a way that takes the best advantage of the opportunity it represents."

The Company stated that it expects to finance a significant portion of the total project cost from its current cash position and future free cash flow. Additional financing will be arranged as necessary in either the public or private sectors of the capital markets.

The Company noted that the final decision as to the exact scope and timetable for the project will be made taking into account competitive conditions in Atlantic City, as well as governmental requirements and conditions in the financial markets.

Griffin Gaming & Entertainment owns and operates Merv Griffin's Resorts Casino Hotel in Atlantic City, New Jersey. The Resorts property was the first casino to operate on the Boardwalk in Atlantic City.

CONTACT: GRIFFIN GAMING & ENTERTAINMENT, INC.

Matthew B. Kearney, 609/340-6106

or

Morgen-Walke Associates

Christine DiSanto/Adam Steinberg

Media Contact: Stan Froelich, 212/850-5600