Carl Icahn and the Official Committee of Unsecured Creditors of Greate Bay Hotel and Casino, Inc. Propose Joint Plan of Reorganization For the Sands Hotel and Casino.

Business Editors

ATLANTIC CITY, NJ--(BUSINESS WIRE)--Jan. 18, 2000

Carl Icahn and the Official Committee of Unsecured Creditors of Greate Bay Hotel and Casino, Inc. today filed a Joint Plan of Reorganization which will permit the Sands Hotel and Casino to successfully emerge from its bankruptcy proceedings.

The Plan provides for an investment of $60 million for 50% of the equity of the reorganized casino by Cyprus LLC and Larch LLC, each either a direct or indirect wholly owned limited liability corporation owned by Carl C. Icahn. The Plan also provides that the current bondholders will receive a new $110 million, 5 year, 11% note which will be secured by the same collateral that secures the old notes and the remaining 50% of the equity. In addition, the General Unsecured Creditors will receive a lump sum cash payment of $4,872,000 to be paid on the effective date of the Plan.

Eric Browndorf, counsel to the Official Committee stated "the Official Committee as a co-proponent, enthusiastically supports this Joint Plan and recommends that all Unsecured Creditors support same and reject any and all other alternative plans. We are confident that this Joint Plan will be supported by the Debtors and confirmed by the Bankruptcy Court. It represents the best possible resolution for all parties." Mr. Browndorf added that "we welcome Mr. Icahn and appreciate his commitment to the ongoing growth of Atlantic City gaming."

Mr. Browndorf continued that "this is a significant and positive development for the Atlantic City community, the trade, and employees of the Sands. It will ensure an extraordinary recovery for those dedicated vendors who continue to be the foundation for the Sands' continuing resurgence. It will also prevent undue economic concentration and ensure that vendors and employees retain a level playing field in the industry. Additionally, this plan will prevent consolidation of additional casinos under the Park Place banner and assure a competitive landscape in the Atlantic City casino market."

Mr. Icahn stated that he is pleased to have the Committee as co-proponent of the Joint Plan and looks forward to a quick resolution of the pending bankruptcy case "in that our Plan offers significantly higher returns to every constituency involved."

For further information contact Eric Browndorf, Esq., counsel to the Committee at 609 344-3161 or Edward Weisfelner, Esq., counsel to Carl C. Icahn, at 212 704-0100.