Elsinore retains financial advisers.

LAS VEGAS--(BUSINESS WIRE)--Aug. 10, 1995--Elsinore Corp. (ASE/PSE:ELS) Thursday announced that it has retained the services of two financial advisers to assist in evaluating strategic and financial alternatives.

Specifically, Elsinore has retained KPMG Baymark Strategies LLC to assist in analyzing financial-restructuring alternatives with respect to the company's outstanding indebtedness. In addition, the company has retained Deutsche Morgan Grenfell/C.J. Lawrence Inc. to pursue and evaluate additional sources of financing, as well as potential business combinations or other strategic relationships.

``We are very close to realizing the benefits to the Four Queens from the opening of the Fremont Street Experience,'' said Thomas E. Martin, president and chief executive officer. ``However, the disruption caused by construction in the downtown Las Vegas area has severely impacted operations.

``The result is that we need additional resources to take maximum advantage of the opening of the Fremont Street Experience, which will be an outstanding attraction and a great boost to our business in 1996.

``Because of the construction disruption and the unanticipated suspension of our involvement in the Spotlight 29 Casino in Palm Springs earlier this year, current cash flow is inadequate to cover the approximate $3.7 million semiannual interest-payment obligations due Sept. 30, 1995, on the company's $57 million outstanding amount of first mortgage bonds.''

Martin stated that for the six-month periods ended June 30, 1995 and 1994, net operating cash outflows were $4.5 million and $1.1 million, respectively. Martin also noted that the company does not fully satisfy all of the financial guidelines for continued listing on the American Stock Exchange and there can be no assurance that the listing will be continued.

``We have hired these advisers to assist us in resolving our current difficulties so that we can fully pursue opportunities going forward,'' concluded Martin.

Martin also announced that the company expected to file its quarterly Form 10-Q report with the Securities and Exchange Commission on a timely basis by Aug. 15, 1995, which will include further details concerning the company's financial condition.

For information on Elsinore via facsimile at no cost, simply call 800/PRO-INFO and dial company code 177.

CONTACT: Elsinore Corp., Las Vegas

Thomas E. Martin, 702/387-5110

Gary Acord, 702/387-5146

or

The Financial Relations Board Inc.

Daniel Saks, 310/442-0599 (general info)

Sue Caulton, 415/986-1591 (analysts)