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Claridge Files Second Amended Joint Plan of Reorganization

The Plan provides for the sale of substantially all of the assets of CPPI and the Partnership, which assets are the Claridge Casino Hotel in Atlantic City, New Jersey, to Park Place Entertainment Corporation (``Park Place''). The Board of Directors has determined that the sale of the Claridge Casino Hotel to Park Place would return substantial value to its creditors.

The Board's financial advisors have estimated that noteholders could receive an approximately 80% recovery. Under the Plan it is estimated that the unsecured creditors will receive approximately a 60% recovery all payable shortly after the Effective Date.

Park Place's purchase of the Claridge Casino Hotel is contingent upon, among other matters, its receiving certain regulatory approvals from the New Jersey Casino Control Commission and the confirmation of a Plan of Reorganization by the United States Bankruptcy Court.

The Court will schedule a hearing on the adequacy of the Disclosure Statement. Upon Court approval of the Disclosure Statement, the Plan will be submitted to creditors for a vote.

On August 16, 1999, the Corporation and CPPI, filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code. On October 5, 1999, ACBA filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code. The Claridge Casino Hotel opened in July, 1981 and has 59,000 square feet of casino gaming space. The Corporation is a closely-held public corporation and is the issuer of $85 million of 11-3/4% First Mortgage Notes which are publicly traded on the New York Stock Exchange under the symbol CLAR02.

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