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Claridge to Proceed with Reorganization Plan

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 Boards' financial advisors have estimated that noteholders could receive an approximately 83% recovery of the total claim of $90.5 million. Under the Plan it is estimated that the unsecured creditors will receive approximately a 61.5% recovery all payable shortly after the Effective Date.

It is expected that the closing of the sale will occur as of the end of the gaming day on May 31, 2001, subject to Park Place's receiving regulatory approval from the New Jersey Casino Control Commission. The Effective Date, which will be the Record Date for distributions to the noteholders, will be June 1, 2001.

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 structuring. On October 5, 1999, Atlantic City Boardwalk Associates, L.P. filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code.

The Claridge Hotel and Casino 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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