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 MINNEAPOLIS, Nov. 16 /PRNewswire/ -- Grand Casinos, Inc. (NASDAQ-NMS: GRND) today announced that it has entered into a commitment to acquire approximately 33 percent of Stratosphere Corporation for $21 million. Stratosphere Corporation is in the process of constructing the Stratosphere Tower in Las Vegas. Grand Casinos has an option to purchase a controlling interest in Stratosphere Corporation and a separate option to acquire the majority interest in the adjacent Vegas World Hotel-Casino. The transaction is subject to various terms and conditions and is expected to be completed in several phases.
 Stratosphere Corporation is presently constructing a 1,012-foot tower (equivalent to a 119 story building) located on the Las Vegas Strip. Completion is projected for late 1994. At this stage of construction, the tower rises over 500 feet above Las Vegas. It is adjacent to Vegas World Hotel-Casino and will be the tallest free- standing observation tower in the United States.
 Under the terms of the agreement, Grand Casinos has the option to acquire controlling interest in both entities through warrants to purchase additional shares of Stratosphere Corporation and options to purchase the assets of Vegas World Hotel-Casino subject to obtaining gaming and other regulatory approvals. The company expects to make its initial investment within 90 days, subject to regulatory review and approvals.
 Lyle Berman, chairman and chief executive officer of Grand Casinos, stated, "The Stratosphere Tower provides Grand Casinos with a unique opportunity to enter the largest entertainment and gaming market in the world. Upon completion of all phases of the proposed development plan, Stratosphere will have presence on the Strip and will be able to offer a quality, value-added family entertainment experience unlike any currently available in the market."
 Mr. Berman continued, "Grand Casinos has a proven track record of developing premier facilities in each of its markets and cultivating a strong consumer franchise through high levels of customer service. We are excited about bringing the `Grand Experience' to a broader universe of gaming and entertainment patrons through a project that will become a must-see attraction."
 Long-time Las Vegas casino operator Bob Stupak, chairman of both Stratosphere and Vegas World, stated that he looks forward to the development of the Stratosphere complex into a world-class attraction.
 The Stratosphere Tower and related development complements Grand Casinos' strategy of developing and managing premier properties that have unique attractions and amenities to draw large numbers of visitors. In addition, the project further broadens the diversity of the company's operations into an established gaming venue.
 Tom Brosig, Grand Casinos' president, said, "The depth and breadth of the company's management team provide us with the resources required to undertake this project."
 Grand Casinos, Inc. develops and manages casino gaming facilities in emerging gaming markets on both Indian and company-owned sites. Grand Casinos, Inc. is traded on the NASDAQ National Market System under the symbol GRND.
 For more information on Grand Casinos via facsimile at no cost, dial 800-PRO-INFO and enter company code 079.
 -0- 11/16/93
 /CONTACT: David R. Jackson, VP-communications and investor relations of Grand Casinos, 612-449-7014; or Michael Rosenbaum, 312-266-7800, or Sue Caulton, 415-986-1591, both of the Financial Relations Board/

CO: Grand Casinos, Inc.; Stratosphere Corporation ST: Minnesota, Nevada IN: CNO SU: TNM

CK -- NY123 -- 5218 11/16/93 19:15 EST
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Publication:PR Newswire
Date:Nov 16, 1993

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