Hollywood Casino Corporation and Pratt Hotel Corporation announce financial advisory relationship with Salomon Brothers regarding Atlantic City Project

Business Wire, July 29, 1996

DALLAS--(BUSINESS WIRE)--July 29, 1996--Hollywood Casino Corporation (NASDAQ:HWCC) and Pratt Hotel Corporation (AMEX:PHC) today announced the engagement of Salomon Brothers Inc as their financial advisor in connection with exploring strategic transactions regarding the Sands Hotel and Casino located in Atlantic City, New Jersey. The financial alternatives include the potential consummation of strategic alliances, including joint ventures, associated with its potential expansion of the Sands. The expansion is contemplated in connection with the transformation of the Sands to a Hollywood Casino , the Company's highly successful Hollywood-themed entertainment concept.

Hollywood Casino and Pratt have secured control over key parcels of property contiguous with the Sands' existing facilities, fronting Pacific Avenue and adjacent to both the Martin Luther King and Indiana Avenue accesses. "Our control over the property fronting Pacific Avenue is key to the initiation of a major expansion of hotel rooms and parking facilities. Preliminary designs include a new 500-room hotel tower, 2,000 additional parking spaces, 40,000 additional square feet of casino space and expanded restaurant and entertainment facilities. Every element of the proposal is designed to deliver the dramatic impact of our trademarked, Hollywood-themed concept which has been so successful at the Hollywood Casino properties in Aurora, Illinois and Tunica, Mississippi," said Edward T. Pratt III, President and Chief Operating Officer.

"We are dedicated to bringing the highest quality entertainment experience to our customers in Atlantic City, just as we do in our other locations. With the major improvements afforded us by controlling customer access from Pacific Avenue, the attractiveness of the Sands location is greatly enhanced. Salomon Brothers Inc has a long-standing relationship with our companies and is uniquely positioned to assist with identifying potential ventures, financings or other strategic transactions," added Mr. Pratt.

Hollywood Casino Corporation, through its 80.1% ownership of Pratt Hotel Corporation, owns and operates the Sands Hotel and Casino in Atlantic City, New Jersey. Hollywood Casino Corporation also owns and operates distinctive Hollywood-themed casino entertainment facilities under the service mark Hollywood Casino in Aurora, Illinois, and Tunica, Mississippi.

CONTACT: Hollywood Casino Corp., Dallas

Investor Contact:

Buz LaFrano, Vice President - Finance, 214/392-7777

or

Morgen-Walke Associates

Christine DiSanto/Josette Tuil

Media Contact: Stan Froelich, 212/850-5600