Cayuga Nation and Alpha Hospitality to Develop Casino at Monticello Raceway.

Business Editors/Travel Writers

NORTHBROOK, Ill.--(BUSINESS WIRE)--April 7, 2003

The Cayuga Nation, a New York State based Nation with federal recognition, and Alpha Hospitality Corporation ("Alpha Hospitality") (NASDAQ:ALHY; BSE:ALH) and its affiliate, Catskill Development LLC, today jointly announced that they have executed agreements to develop a casino adjacent to Monticello Raceway, subject to final state and federal approvals.

Located off Route 17 in Sullivan County, New York, Monticello Raceway is just 90 miles from New York City and within 100 miles of over 20 million people.

Cayuga leader, Clint Halftown, stated, "The Cayuga people have been landless and in economic distress for over 200 years. Our people need jobs, housing, education, medical care and the means to keep important links to our culture and our land. The Nation has discussed the prospect of casino gaming in the Catskills for over two years. We now have reached a consensus - our time has come." Mr. Halftown also disclosed that the Cayuga Nation would submit a comprehensive trust land application to the Bureau of Indian Affairs later this week.

The agreements provide for the development, construction, financing, operation and management of the proposed casino. In addition to gaming operations, the agreements provide for a joint venture to construct and operate hotels, retail and other support facilities in Sullivan County that will compliment casino operations.

Alpha Hospitality Chairman and CEO Robert Berman said, "This project is poised for quick approval. We will be building on a site that had previously been approved by the Bureau of Indian Affairs for purposes of building a Native American casino."

Martin R. Gold, a partner in the law firm of Sonnenschein, Nath & Rosenthal and lead attorney for the Cayuga Nation, said, "We expect to complete the land to trust process and create an economic catalyst that will benefit the Cayuga Nation, the people of Sullivan County as well as the state of New York."

Under a recent letter of intent, Alpha Hospitality is proceeding with a planned consolidation with Catskill Development LLC and its other affiliates. Subject to completion of the transaction, Alpha Hospitality will acquire full beneficial ownership of Catskill's operations at Monticello Raceway, including all development and management rights with respect to Native American gaming, video lottery terminals and real estate development activities.

To the extent the content of this press release includes forward-looking statements, they involve various risks and uncertainties including (i) the risk that various approvals necessary for consummation of the agreements described herein and required to be obtained from the Bureau of Indian Affairs, the National Indian Gaming Regulatory Commission, the Governor of the State of New York and various other federal, State and local governmental entities are not received, (ii) the risk that financing necessary for the proposed projects may not be able to be obtained because of credit factors, market conditions or other contingencies, (iii) the risk that the Cayuga Nation may exercise certain broad rights with regard to termination of the within described agreements (iv) the risk that definitive agreements with Catskill Development LLC and its affiliates are not consummated as contemplated and that the proposed consolidation does not occur, (v) the risk of non-compliance by various counterparties of the related agreements, and (vi) general risks affecting Alpha Hospitality as described from time to time in it's reports filed with the Securities and Exchange Commission. Alpha Hospitality 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.