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Claridge Announces 2000 Results

The Corporation reported a Net Income for the year ended December 31, 2000, of $516,000. The Corporation's Income Before Reorganization Items and Income Taxes was $4.2 million. Reorganization Items included an expense of $4.5 million for professional fees and $860,000 of interest income from accumulated cash.

For the year ended December 31, 1999, the Corporation reported a Net Loss of $38.2 million and Income Before Reorganization Items and Income Taxes of $531,000. In 1999 Reorganization Items included an expense of $1.3 million in professional fees, $142,000 of interest income from accumulated cash and a $37.6 million provision for impairment of the Expandable Wraparound Mortgage receivable which was written down to its estimated realizable value in light of the bankruptcy filings of the Corporation, its subsidiary The Claridge at Park Place, Inc., and Atlantic City Boardwalk Associates, L.P., the mortgagee.

Earnings before interest, taxes, depreciation and amortization, when adjusted to eliminate the effects of the related limited partnership structure (``Adjusted EBITDA''), was $6.9 million for the full year of 2000 compared to $10.7 million for 1999.

On August 16, 1999, The Corporation and The Claridge at Park Place, Incorporated filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in order to facilitate a financial restructuring. On October 5, 1999, Atlantic City Boardwalk Associates, L.P., a related limited partnership, filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code. Due to the bankruptcy filing, the Corporation ceased to record interest expense.

``We are pleased to report improved operating results in 2000. The improvement was achieved despite the distractions of our bankruptcy filing and the impending sale of the company as the result of our employees' focus on serving our customers. We saw a $2.1 million (21.7%) year-to-year improvement in Adjusted EBITDA in 2000 after eliminating the effect of reorganization items in 2000 and 1999, the effect of a $1 million contractual annual increase in payments to the limited partnership in 2000 and the effect of the garage settlement in 1999.''

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