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RIO ANNOUNCES $25 MILLION CASINO EXPANSION AND EXPANDED BANK FACILITY

 LAS VEGAS, May 22 /PRNewswire/ -- Rio Hotel & Casino Inc. (NASDAQ-NMS: RIOH) ("Rio") announced today at its annual meeting of stockholders that in July 1993 it will commence a $25 million casino and public area expansion of the Rio and that its lenders have committed to expand Rio's construction and revolving credit line facility.
 Based upon the success of the Carnival World Buffet and casino expansion completed in December 1992, and the strong advance room bookings for the Rio's new 437-suite hotel tower to be completed by December 1993, the $25 million expansion will start in July and be completed in phases by April 1994. The new project will include an 18,000-square-foot expansion of the casino, a new 130-seat themed restaurant, a new 450-seat one-of-a-kind entertainment complex and restaurant area, a 36,000-square-foot expansion of the Rio's beach pool area with a second swimming pool and additional recreation areas, and a 135,000-square-foot two-level parking garage with parking spaces for approximately 435 vehicles. The Rio's expansion will take place on the property's east side and the resulting expanded casino will be 74,000 square feet.
 The Rio also announced that its lenders have committed to refinance and expand the Rio's existing $53 million revolving credit line facility into a new $65 million construction loan and revolving credit line facility. The term of the new loan will be extended to March 1999, and is subject to the completion of definitive documents, which is anticipated to occur by July 1, 1993. The $25 million expansion will be funded through a combination of the new loan, the Rio's cash on-hand and cash from continuing operations. The bank group is led by Bank of America and First Interstate Bank.
 At the May 22, 1993 meeting, stockholders re-elected Anthony A. Marnell II, James A. Barrett, Jr., John A. Stuart, Thomas Y. Hartley, and Lud J. Corrao to the Rio's board of directors and approved an increase in the company's authorized common stock from 30 million to 50 million shares.
 Rio chairman of the board, Anthony A. Marnell II stated: "We are very pleased to continue with our master plan of growing the Rio property to meet customer demands. With the suite tower project on time and on budget and the high levels of existing business, we see the need to provide additional entertainment, eating and gaming areas. The new expansion will provide for approximately 12 table games and will accommodate up to 500 slot machines. We will also be introducing a unique, interactive entertainment and dining concept in a distinctively designed 450-seat theater. We will be making further announcements in the coming months regarding this exciting area. In keeping with our friendly, colorful and festive Rio theme -- customer service, value and fun will remain our priority."
 The Rio, located on a 45-acre site in Las Vegas, is an all-suite hotel-casino presently consisting of 424 suites and a 54,000-square- foot-casino. The Rio is currently in the midst of a $37 million expansion project which will add a new hotel lower with 437 suites by December 1993. Its new 85-seat seafood restaurant "Buzios" had its grand opening on May 21, 1993. The Rio was designed to permit multiple expansions in accordance with a conceptual master plan and received zoning approval for 2,400 rooms.
 -0- 5/22/93 R
 /CONTACT: James A. Barrett Jr., president of Rio Hotel & Casino, 702-252-7733/
 (RIOH)


CO: Rio Hotel & Casino Inc. ST: Nevada IN: CNO SU: FNC

JL -- SD001 -- 1503 05/24/93 08:00 EDT
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Publication:PR Newswire
Date:May 24, 1993
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