SBE and Stockbridge Complete Sahara Buy

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. October 14, 2008

AUGUST 2, 2007. SBE Entertainment Group, LLC ("SBE") and Stockbridge Real Estate Funds ("Stockbridge") have completed their acquisition of the Sahara Hotel & Casino in Las Vegas, Nevada, from Gordon Gaming Corporation ("Gordon Gaming"). SBE and Stockbridge intend to utilize their extensive redevelopment experience to renovate and revitalize the property, which is located at the north end of the Las Vegas Strip. Terms of the acquisition were not disclosed. Making the announcement were Sam Nazarian, CEO of SBE, Terry Fancher, Executive Managing Director of Stockbridge, and Al Hummel, CEO of Gordon Gaming.

With the purchase of the Sahara Hotel & Casino, SBE and Stockbridge have positioned themselves to be integral players in the master planning of the northern end of Las Vegas Boulevard, which has seen an influx of investment dollars from major gaming institutions since the partners made their initial acquisition announcement in April 2007. The closing of the transaction marks a turning point for the "North Strip" with SBE and Stockbridge leading a trend that sees casino owners leveraging the full value of Strip property and using their hotel and entertainment expertise to create destinations for discerning visitors.

"We have an exciting vision for this property," said SBE's Nazarian. While a definitive timeline for property redevelopment remains in the works, Nazarian commented, "Working closely with our partners at Stockbridge, we will be bringing SBE's foresight and proven reputation for trend setting to the Sahara. Our Hotel Group and Restaurant & Nightlife Group, with their successful track records in property repositioning, are focusing their efforts on creating a location that will change the landscape of the northern Strip and include upscale food, beverage, entertainment and gaming in a stylish, high-service package. We are also looking forward to becoming a meaningful and positive force within the Las Vegas community."

Commenting on the acquisition, Stockbridge's Fancher said, "The Sahara represents just the type of investment in Las Vegas that we, as real estate private equity investors are looking to make: a property with an established franchise in a superior Strip location that can benefit from operational expertise and the investment of additional capital."

Mr. Fancher added, "We are particularly pleased to be working in partnership with SBE on this venture and believe that SBE's creativity and entrepreneurship in developing some of California's most popular restaurants and nightclubs will transfer well to the Las Vegas market. Together with SBE, we intend to invest in this property and make it vibrant, exciting and accessible to a new generation of visitors."

With the closing of the transaction, SBE has assumed management of the hotel and its associated food and beverage operations through SBE's operating subsidiary, SBE Hotel Group. Sahara's casino will be operated by Navegante Group, a casino management and development company owned by well known Las Vegas casino executive and entrepreneur, Larry J. Woolf, under a lease arrangement.

The parties would like to acknowledge and thank their advisors who assisted with the transaction. For Gordon Gaming, SG Americas Securities, LLC acted as Exclusive Financial Advisor and Joint Transaction Advisor, along with CB Richard Ellis' Global Gaming Group (Las Vegas). Gordon Gaming was represented primarily by Latham & Watkins, LLP (Orange County and San Diego) and Brownstein Hyatt Farber Schreck, P.C. (Las Vegas). SBE and Stockbridge were represented primarily by Davis Polk & Wardwell (New York and Menlo Park), Pillsbury Winthrop Shaw Pittman, LLP (Los Angeles), Lionel, Sawyer & Collins (Las Vegas), Lewis and Roca (Las Vegas), and Kamer Zucker Abbott (Las Vegas). Debt financing for the transaction was provided by RBS Greenwich Capital.