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Empire Resorts Announces Bridge Loan And Rights Offering

Empire Resorts, Inc., (NASDAQ: NYNY) today announced that it has received a financing commitment from Kien Huat Realty III Limited (“Kien Huat”), the company’s largest stockholder, to provide a short-term bridge loan to the company in the aggregate principal amount of $35 million (the “Bridge Loan”). If consummated, the proceeds of the Bridge Loan, together with available funds, will be used to repay in full the company’s obligations under its 5½% convertible senior notes due 2014 (the “Notes). Any proceeds not necessary for repayment of the Notes will be used for working capital and related fees and expenses. The repayment of the Notes from the proceeds of the Bridge Loan would be made in accordance with the terms of that certain settlement agreement entered into by the company on September 23, 2010 among the trustee under the indenture governing the Notes and the beneficial owners of the Notes party thereto.

Following the extension of the Bridge Loan and the repayment of the Notes, the company intends to conduct a rights offering upon terms to be determined by the board of directors of the company. In the rights offering, if conducted, the company would distribute to all holders of the company’s common stock a non-transferrable right to purchase additional shares of the company’s common stock at a price of $0.8837 per share, which is equivalent to the conversion price of the restated notes that would be issued pursuant to the settlement agreement if the Notes are not repurchased. Kien Huat has also committed to exercise all of its basic rights to purchase additional shares allocated to Kien Huat with respect to its current ownership of the company’s common stock. If, upon the completion of the rights offering, the proceeds of the rights offering are insufficient to repay in full all amounts outstanding on the Bridge Loan, Kien Huat has agreed to convert the full amount remaining unpaid into a convertible term loan with a term of two years at an interest rate of 5% per annum convertible into the company’s common stock at a price equal to the $0.8837 per share exercise price of the rights issued in the rights offering.

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