Mohegan Sun Takes Steps to Reduce Costs Without Layoffs

. January 12, 2009

UNCASVILLE, CT, January 12, 2009 - The Mohegan Tribal Gaming Authority ("MTGA" or the "Authority") announced today a series of cost reduction initiatives to be implemented at its flagship property, Mohegan Sun, in Uncasville, Connecticut, as a result of the continuing economic slowdown.

In a continued effort to maintain its record of no employee layoffs, something that has been accomplished due to long-standing financial success since opening in 1996, the MTGA Management Board is implementing alternative cost saving initiatives that will better align the Authority's cost structure with the current economic environment, while ensuring minimal impact on the guest experience.

Effective February 1, 2009, all Mohegan Sun employees, including senior management, and its Connecticut affiliates, will have salary rollbacks of 10 percent for Vice Presidents and above, 7.5 percent for middle management and 4 percent for all line and hourly employees. Other actions include suspension of all annual and merit-based compensation increases, as well as employer-matched 401K contributions.

The Authority is also implementing a number of other initiatives to reduce operating expenses, including marketing efficiencies, reducing hours of operations in some outlets, and working with all business partners and service providers to increase cost-effectiveness.

"These are difficult times for the entire Mohegan family," said Bruce "Two Dogs" Bozsum. "Sacrifices are being made by the employees of Mohegan Sun, our Tribal Government, and by the members of our Tribe. I am confident we will weather this as we always have, together, and be stronger for it."

"Due to unprecedented market conditions, the Authority has been forced to make a number of difficult, but necessary, decisions to reduce our operating costs," said Mitchell Etess, President and Chief Executive Officer of Mohegan Sun. "However, we are determined to remain the leader in our industry without compromising our core values and clear competitive advantages."

Mr. Etess added, "In addition to respect for our employees, we also have a responsibility to our banking partners, bondholders and stakeholders who continually support our vision. We are confident that we are taking the appropriate measures to improve our financial results and grow our existing market share advantage over competitors."

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