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BOOMTOWN SIGNS AGREEMENT TO BUILD NEW HOTEL CASINO IN LAS VEGAS

 RENO, Nev., March 15 /PRNewswire/ -- Boomtown Inc. (NASDAQ: BMTN) has signed a memorandum of understanding with entities controlled by Edward P. Roski Jr. for the construction of a $60 million hotel/casino resort facility at the southern gateway to Las Vegas, Timothy Parrott, Boomtown's chairman and chief executive officer, announced today.
 The agreement calls for construction of the 304-room Boomtown Blue Diamond Hotel & Casino and a 496-space recreational vehicle park, as well as a supermarket and restaurant. The 56-acre site is located at the southwest corner of the intersection of Blue Diamond Road and Interstate 15, which is the major traffic artery between Las Vegas and Southern California. Construction is expected to begin within 60 days using Roski's construction company, Commerce Construction, with completion scheduled for the summer of 1994.
 The project will be carried out through a Nevada corporation, Blue Diamond Hotel & Casino Inc., equally owned by Boomtown and Roski. When built, Boomtown will manage the property. It will also have an option to acquire the remaining interest in Blue Diamond for cash or Boomtown stock. Boomtown will have further options to acquire the property and improvements from the general partnership, also for cash or Boomtown stock. Roski will join the Boomtown board.
 The transaction is subject to the completion of a definitive agreement, approval of Boomtown shareholders, final permitting and other government approvals, including licensing and approvals by the Nevada Gaming Commission.
 Parrott commented: "Expansion beyond Boomtown's original market outside Reno has been a part of our strategy for some time. We are very pleased to be joining with Blue Diamond and Ed Roski in developing this excellent location in the largest and most dynamic gaming market in the country. Ed Roski Jr., with his father, Ed Roski Sr., through Majestic Realty in City of Industry, Calif., have developed a commercial real estate portfolio of approximately 30 million square feet.
 "We are convinced that Boomtown's `old west' theme, with its casual, friendly atmosphere and its focus on middle income, value- oriented customers will find a strong market in Las Vegas, just as it has for approximately 25 years at our original casino seven miles west of Reno on Interstate 80, which connects Nevada with Northern California. We also believe there are a number of attractive gaming markets to replicate the Boomtown theme and are continuing to aggressively pursue potential opportunities meeting our expansion strategy criteria in other gaming jurisdictions."
 Boomtown also announced that the second phase of its expansion at its original site in Reno is proceeding on schedule for completion in June 1993. This construction will increase the casino from 29,000 square feet to approximately 40,000 square feet, add a 35,000-square-foot family entertainment center and a 150-seat restaurant at the truck stop it operates adjacent to the casino.
 Commenting on operations, Parrott said: "Due to the worst winter weather in 40 years, our results in January and February have been adversely affected." Historically, Boomtown does more than 70 percent of its business in the third and fourth quarters of its fiscal year, which ends in September.
 Boomtown Inc., a public company since October 1992, owns and operates a western-themed casino approximately seven miles west of Reno. The facilities include a 29,000-square-foot casino, a 122-room hotel, a 16-acre truck stop, a 203-space full-service recreational vehicle park and other related amenities.
 -0- 3/15/93
 /CONTACT: Timothy Parrott, chairman and CEO of Boomtown, 702-345-2327/
 (BMTN)


CO: Boomtown Inc.; Blue Diamond Hotel & Casino Inc. ST: Nevada IN: CST LEI SU:

MS-EH -- LA026 -- 6272 03/15/93 17:46 EST
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Date:Mar 15, 1993
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