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Agua Caliente band completes bond issue

22 November 2006

PALM SPRINGS, California -- (PRESS RELEASE) -- The Agua Caliente Band of Cahuilla Indians today announced the completion of a $230 million private placement debt issuance to 20 institutional investors across the United States.

The debt issuance will be used to fund the construction of a new 344-room luxury hotel at its Agua Caliente Casino located near Rancho Mirage, Calif.

A portion of the bond proceeds will also be used to retire substantially all existing debt of the Tribe's gaming operations.

The secured notes were rated "A-" by Fitch Ratings. According to Fitch, "The A- Rating reflects a long history of stable operations of two casino facilities with sound financial margins, ample coverage of maximum annual debt service (MADS) from pledged revenues, and tribal governance stability."

The Tribe's Chief Financial Officer, Max Ross, said it was the sixth financing project completed in the past six years, "and our second successful bond offering." Sale of the bonds was facilitated through JPMorgan Securities Inc.

"The current taxable issue was four times oversubscribed, which resulted in favorable interest rates for the Tribe," Ross said. "The attractiveness of this offering reflects the positive financial condition of the Tribe and the continued success and growth of its gaming operations."

The Tribe plans to open the new hotel facility in the first quarter of 2008. The 15-story structure will include 322 guestrooms, 20 executive suites, and 2 presidential suites, as well as a full service spa, fitness center, pool, and additional meeting space.

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