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Alpha Hospitality Sells Interest in Mississippi Casino

After the repayment of liabilities, the General Partner expects to distribute approximately $13,000,000 to the Limited Partners over the next two weeks. Alpha holds a 19.2% interest in the Partnership. An additional $1,000,000 is being held in escrow for 18 months pending any claims the purchaser may make against GCP.

Additionally, the Company announced that in a separate transaction it sold its Hotel Management Agreement for the Greenville Inn and Suites located in Greenville, Mississippi, for an additional $500,000, the proceeds of which have been received by the Company.

As previously released, Catskill Development, LLC (``Catskill'') is currently working with the New York State Lottery to explore the feasibility of installing video lottery terminals (``VLTS'') at the Monticello Raceway (the ``Raceway''), in which the Company has a 37% interest. Catskill has advised the Company that it has received a letter from the Lottery, dated March 21,2002.

The letter advised the Raceway that the Lottery has completed its review of the Raceway's business plan for the operation of VLT's at the raceway during the initial three-year trial period approved by the State Legislature. Based on such review, the Lottery has made an initial allocation of 1,800 VLT's to the Raceway and has approved the maximum permitted rate for compensation of 25% of revenues generated after payout of prizes for the Raceway. By law, the Raceway must apply 35% to 45% of its compensation to enhance purses at the Raceway and must dedicate 5% to a State Breeding Development Fund.

The business plan was submitted in accordance with Lottery procedures and does not represent a final decision with respect to the implementation of VLTS by the Company. The Company continues to evaluate the appropriateness of making the required capital expenditures necessary for VLT operations relative to the length of the test period, the ultimate level of return on investment, and the implementation date for the program.

The Lottery has not yet made a final decision to proceed with the program, established a firm start date or adopted regulations with regard to the program. In addition, Catskill's ability to proceed with the VLT program may be impacted by its plans with respect to casino development at the site. Accordingly, no assurance can be given that the Company will decide to proceed with the operation of VLT's at the Raceway.

Catskill and the Company continue to prosecute their $6.3 billion lawsuit against Park Place Entertainment Corp (``PPE'') alleging tortuous interference and conspiracy to restrain the development of a casino at the Raceway. PPE is accused in the complaint of having unlawfully induced the Tribe to terminate certain agreements and the Tribe's relationship with Catskill one week after the Secretary of the Interior had approved a land-to-trust application for a 29 acre parcel of land adjoining the Raceway, which was to be used for the tribal gaming enterprise. It is expected that the discovery portion of the proceeding will be completed in April and that the case will go to trial in 2002.

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