POCONO MANOR ONE STEP CLOSER TO BECOMING WORLD-CLASS DESTINATION RESORT AND CASINO

Matzel Development Takes Ownership of Property; Submits Slots Application with State Gaming Board

Resort & Casino Building Not to Exceed 234 Feet in Height, 20-Percent Shorter Than Earlier Request of 300 Feet

POCONO MANOR, PA – DECEMBER 23, 2005 – A world-class resort and casino in the Poconos is one step closer to reality with today’s announcement that Matzel Development has officially closed on the Pocono Manor property. At a news conference today at Pocono Manor, Greg Matzel, President of Matzel Development, a New Jersey and Pennsylvania-based real estate development company, announced the official acquisition of the Pocono Manor Inn & Golf Resort. Matzel Development finalized the purchase of the resort from the Ireland family, which has owned and operated the property since the 1960s.

Matzel also announced that concurrent with his announcement of the acquisition, his team today officially submitted its Category Two slot machine license application with the Pennsylvania Gaming Control Board in Harrisburg. The board-imposed deadline is December 28.

“Pocono Manor and this entire region have been a favored vacation destination for decades, and I’m pleased to be the next in line to continue such a great tradition,” said Matzel. “I’m excited about writing the next chapter in this magnificent resort’s history by not only continuing the Ireland family’s efforts to restoring this magnificent Inn and its existing amenities to its prior luster, but also by developing a world-class vacation destination that will add to the vibrancy of the region and make an unprecedented positive economic impact.”

Matzel was joined at the conference by Pocono Mountains Visitors Bureau Executive Director, Bob Uguccioni. “This is one of the most exciting projects to ever come to the Pocono Mountains. We’re very excited and offer our full support and cooperation to the new owners of Pocono Manor,” said Uguccioni.

Matzel added that – after consultation with his team of architects and engineers – the resort and casino building can accommodate the 750 rooms and all other amenities at a height that is 20-percent shorter than the originally estimated 300 feet. At a maximum of 234 feet, the resort and casino would be built with materials that complement the region’s natural beauty. Matzel also pointed out that the new maximum height of 234 feet is lower then most of the cell towers that already exist in the area.

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“I appreciate the concerns expressed by some Tobyhanna Township residents regarding the height of the facility,” said Matzel. “That’s why I asked my team to take another look at the numbers, and I am pleased that we were able to find a way to reduce the height by more than 20 percent to reflect the concerns of the local residents while still delivering a superior experience for our guests. I imagine there are probably some who wish we were reducing it by 80 percent. Based on the emails and feedback that I have received, most people understand that if you want to create a dynamic destination that will inject millions of dollars into the local and state economy along with thousands of new jobs throughout the region, you need to provide a certain level of service that guests are expecting. This is an important compromise and I think we have achieved the right balance with this reduction in height. It is a reasonable compromise to accomplish the goals of all those involved and the region at large.”

Matzel shared concept plans and drawings of his proposed $1.2 billion resort and casino to be developed on the grounds of Pocono Manor Inn & Golf Resort. The artist renderings depict the conceptual site plan, an aerial rendering of the new resort complex, conceptual renderings of the atrium, casino, pool and grotto, retail and villa village, golf villas, arrival port cochere and freestanding marquee sign. Plans for the new resort and casino are part of a 10-year, $3 billion development project on Pocono Manor’s 3,000 acres in Tobyhanna and Pocono Townships and the Borough of Mt. Pocono.

“The natural beauty of the landscape in the Pocono Mountains is part of what makes the region such a vacation paradise during all seasons of the year,” said Matzel. “As you can see in the artist renderings, we are working to build a first-class destination resort that not only meets the modern needs and expectations of today’s travelers, but also complements the existing architectural features and landscape of Pocono Manor.”

Today’s announcement comes just one month after Matzel unveiled his all-star team of partners and consultants led by Dennis Gomes. Gomes brings 35 years of experience in the gaming industry, including stints as president of both the Tropicana Casino & Resort and Trump Taj Mahal Hotel & Casino in Atlantic City and president of the Golden Nugget Hotel & Casino in Las Vegas, among other senior-level posts at well-known resorts and casinos. At the Tropicana, Gomes is credited with the vision for creating The Quarter – the Trop’s highly acclaimed, $285 million retail, dining and entertainment complex.

Matzel’s plans for a new resort and casino initially include a 1 million square-foot hotel and casino complex housing 750 rooms and a 100,000 square-foot casino consisting of up to 5,000 slots as well as a full-service spa, two 18-hole championship golf courses, a 17-acre lake, indoor and outdoor pools and grotto, 60,000 square feet of meeting and convention space, an 1,800-seat theater, a 100,000 square foot village green, a 300,000 square foot retail village, a tennis center, equestrian facility, shooting ranges, miles of wooded trails, a large selection of dining options and an inter-resort gondola transit system.

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The new resort, combined with the existing manor, will create more than 3,300 jobs, making it the largest private employer in the region, 2nd only to the Tobyhanna Army Depot. It is estimated that an additional 1,600 jobs will be created outside of the resort in industries that provide goods and services to the resort complex.

Bringing such a large-scale project to the region has significant tax benefits for local municipalities, school districts and the Commonwealth. Matzel Development engaged Bethlehem, Pa.-based Urban Research & Development Corporation to conduct an economic benefit study outlining the projected tax revenues to be realized by Tobyhanna Township, Mt. Pocono School District, Monroe County, Pocono Mountains Vacation Bureau and the Commonwealth of Pennsylvania. Based upon preliminary gaming revenue projections as well as land-value real estate taxes at Pocono Manor, Tobyhanna Township would receive annual tax revenues of more than $5.66 million. Mt. Pocono School District would receive more than $16.1 million in annual real estate taxes. Monroe County would receive annual tax revenues of over $8.1 million. The Commonwealth of Pennsylvania would receive more than $115.6 million from gaming revenues. It is also estimated that The Pocono Mountains Vacation Bureau would receive approximately $800,000 annually from the newly created 3 percent hotel room tax.

Pocono Manor Inn & Golf Resort dwells on approximately 3,000 acres (5.5 square miles) in Tobyhanna and Pocono Townships as well as the Borough of Mt. Pocono. Residing in its own zip code, the resort consists of a nine-story, 257-room inn and conference center, a golf facility with two 18-hole courses, an equestrian facility, indoor and outdoor tennis courts, shooting ranges and miles of trails used for hiking, cross country skiing, horseback riding and snowmobiling.

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