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Riviera Holdings enters exclusive negotiating agreement

LAS VEGAS, Nevada – (PRESS RELEASE) -- Riviera Holdings Corporation (Amex: RIV) today announced that it has received a non-binding proposal from real estate developer Ian Bruce Eichner and the D. E. Shaw group, on behalf of an entity to be formed by them, to acquire by merger all of the outstanding shares of Riviera at a cash price of $21 per share. Their proposal is conditioned upon satisfactory completion of due diligence, negotiation of definitive transaction documents, and receipt of necessary board, stockholder, third party, and regulatory approvals.

Following receipt of the proposal, Riviera entered into a 30-day exclusive negotiating agreement with Eichner and a member of the D. E. Shaw group, effective November 13, 2006. In addition, Riviera's board of directors has adopted resolutions, under the defensive provisions of Riviera's articles of incorporation and Nevada's business combination law, enabling Eichner and members of the D. E. Shaw group to join together in making and negotiating their acquisition proposal and to seek approvals that would be needed to consummate the acquisition.

Riviera has no binding agreements with Eichner, any member of the D. E. Shaw group or any of their affiliates, other than agreements pertaining to the 30-day exclusive negotiating period and confidentiality, and there is no assurance that Riviera will enter into an acquisition agreement with Eichner, any member of the D. E. Shaw group or any of their affiliates. Moreover, even if Riviera enters into such an agreement, there is no assurance that the agreement would receive the requisite approvals from Riviera's shareholders and governmental authorities, including gaming regulators.

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