Hollywood Casino Corporation announces proposal to acquire all the outstanding shares of Pratt Hotel Corporation

Business Wire, March 29, 1996

DALLAS, Texas--(BUSINESS WIRE)--March 29, 1996--Hollywood Casino Corporation (Nasdaq:HWCC), which owns 80.1% of the outstanding shares of Pratt Hotel Corporation, announced today that it has submitted a proposal to acquire the remaining shares of Pratt Hotel Corporation. The proposal provides for Pratt Hotel to make a cash tender offer to the remaining shareholders of Pratt Hotel and for a "cash out" merger with respect to any Pratt Hotel shares outstanding after the completion of the cash tender offer. The proposal further provides for an offering and merger price of $3.25 per share, subject to receipt by

Hollywood Casino of a fairness opinion from an independent financial advisor. Funding for the proposed transactions will be provided by Hollywood Casino. Pratt Hotel officials have indicated that they expect to evaluate and respond to the proposal within the next month.

"We expect to achieve significant administrative cost savings by taking Pratt Hotel private" stated Jack E. Pratt, Chairman of Hollywood Casino. "Simplification of our corporate structure should be well received by the financial community and facilitate future corporate financing."

There are currently 5,186,627 shares of Pratt Hotel common stock outstanding of which 4,156,013 shares are held by Hollywood Casino. Pratt Hotel's shares were trading at $2.375 per share at the close of business March 28, 1996.

CONTACT: Investor:

Buz LaFrano

Vice President - Finance

(214) 392-7777

or

John Hull

Controller

(214) 392-7777

or

Christine DiSanto/Adam Steinberg

Media Contact: Stan Froelich

Morgen-Walke Associates

(212) 850-5600