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Claridge Reports First Quarter Results

Earnings before interest, taxes, depreciation and amortization, when adjusted to eliminate the effects of Claridge's related limited partnership structure ("Adjusted EBITDA"), were $417,000 for the quarter ended March 31, 2000, compared to $2.4 million for the first quarter in 1999.

Net loss and Adjusted EBITDA for the first quarter of 2000 included a $1.1 million expense for professional fees for legal, financial and other services related to the Corporation's Chapter 11 proceedings. Net loss and Adjusted EBITDA for the first quarter of 1999 include the effect of the receipt of the settlement of Claridge's claim against the contractor and architect that built its self-parking garage.

On August 16, 1999, The Claridge Hotel and Casino 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.

Therefore, beginning on August 16, 1999, the Corporation ceased to record interest expense related to its 11-3/4% First Mortgage Notes. Interest expense for the Notes, for the period January 1, 2000 to March 31, 2000, would have been $3,212,000.

Casino revenue was $38.8 million in the first quarter of 2000, a 6.0% increase over casino revenue in the same period in 1999. Total costs and expenses for the quarter declined $1.5 million, due mainly to decreased interest expense due to the bankruptcy filing, offset to some extent by increases in casino, hotel, room, food, beverage and other expenses necessary to support the revenue improvement.

"We are pleased with the improvement in year-to-year operating results," stated Frank Bellis, chief executive officer, "Eliminating the effect of the reorganization expense in 2000 and the one-time receipt of the garage settlement in 1999 we saw a $1.2 million improvement in the Adjusted EBITDA in the first quarter of 2000."

The Claridge Hotel and Casino Corporation, through its subsidiary, The Claridge at Park Place, Incorporated, operates the Claridge Casino Hotel in Atlantic City. The casino hotel opened in July 1981 and has 59,000 square feet of casino gaming space. The Claridge Hotel and Casino Corporation is a closely held public corporation. Its Corporate Bonds are publicly traded on the New York Stock Exchange under the symbol CLAR02.

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