Alpha Hospitality Reports Annual Results.

Business Editors

NEW YORK--(BUSINESS WIRE)--April 3, 2001

Alpha Hospitality Corporation (NASDAQ:ALHY)(BSE:ALH)(WARRANTS:OTC BB:ALHYW) (BSE:ALHW) (the "Company"), which has been operating as a holding company and a vehicle to effect acquisitions, today reported results for the year ended December 31, 2000.

The results principally reflect the general and administrative expenses related to the pursuit of the Native American casino proposed to be located at the Monticello Raceway in New York State and expenditures incurred in the development of the Company's entertainment/gaming cruise project in Miami Beach, Florida. The vessel, the Ella Star Casino, had its soft opening on November 26, 2000. Additionally, the expenses have been reduced by a noncash adjustment relating to deferred compensation payable to the Company's Chairman and CEO, which pursuant to a 1999 agreement, may be converted into shares of he Company's common stock at a price of $2.00 per share, the closing price on the agreement date. The 3.2 million noncash adjustment to compensation for the year ended December 31, 2000 reflects a decrease in market price of the Company's common stock since December 31, 1999.

            ALPHA HOSPITALITY CORPORATION AND SUBSIDIARIES
                      Summary Balance Sheet Data
                           December 31, 2000
                            (in thousands)


Cash                                    $    1,263
Total current assets                         1,959
Net property and equipment                   2,311
Other assets                                 9,263
                                        ----------
Total assets                             $  13,533
                                         =========

Total current liabilities               $    3,104
Total long-term liabilities                  6,853
Total shareholders' equity                   3,576
                                        ----------
Total liabilities and equity             $  13,533
                                         =========

            ALPHA HOSPITALITY CORPORATION AND SUBSIDIARIES
             Summary Consolidated Statements of Operations
                 (in thousands, except per share data)

                                                  Year Ended
                                                  December 31,
                                           2000                1999
                                           ------------------------
Revenues                              $     872          $      185
Costs and expenses                       (1,178)             (5,948)
Other loss                                 (106)                  0
                                       -----------       -----------
Net Loss                                   (412)             (5,763)
Dividend on preferred stock              (6,194)                  0
                                       -----------       -----------
Net loss applicable to common shares  $  (6,606)         $   (5,763)
                                       ==========        ===========

Net loss per share:
 basic & diluted                      $    (.35)         $     (.34)
                                      ===========        ===========

To the extent the content of this press release includes forward-looking statements, they involve risks and uncertainties that are described from time to time in the Company's reports filed with the Securities and Exchange Commission. The Company wishes to caution readers not to place undue reliance on such forward-looking statements, which statements are made pursuant to the Private Securities Litigation Reform Act of 1994, and as such, speak only as of the date made.