Continuing with the theme mentioned in last October’s AGM, Publishing and Broadcasting (PBL) yesterday took a further step in partnership building with international companies. That same month PBL executive chairman James Packer had commented that the sale of media assets would, “…provide the capital and flexibility necessary for the company to achieve its ambition to expand its international gaming interests”. He continued, “For PBL it releases cash at a time when there is a land-grab underway for gaming and entertainment assets around the world,” giving rise to speculation that PBL would look at investment in the US.

Fontainebleau Resorts LLC, a Las Vegas-based resort and casino developer, has announced it has entered into a definitive agreement with PBL for a US$250 million investment in Fontainebleau Resorts in exchange for a 19.6% interest in the company. Fontainebleau Resorts is developing Fontainebleau-Las Vegas, a US$2.8 billion, 63-story world-class destination resort located on 24.5 acres on the Las Vegas Strip, as well as re-creating the legendary Fontainebleau Miami Beach with a spectacular US$500 million makeover. The Las Vegas project is expected open in autumn 2009, and the Miami Beach project in full in summer 2008.

Fontainebleau Resorts was co-founded in 2005 by its Executive Chairman and majority owner Jeffrey Soffer, principal of the Turnberry group of companies, one of the nation's premier real estate development firms, and CEO Glenn Schaeffer, former President and Chief Financial Officer of Mandalay Resort Group. "We are extremely pleased to have such a renowned industry leader as James Packer's PBL as our cornerstone investor," Mr. Soffer said. "We are excited about this strategic alliance between our two companies and are confident this partnership will lead to mutually beneficial growth opportunities.”

Completion of the transaction is expected to close next month, subject to the usual approvals. James Packer commented, "This transaction provides PBL Gaming with a first-class entrance into the U.S. casino resort market, in particular, the renowned Las Vegas Strip. Jeff Soffer's Turnberry organization has an enviable record in America of developing some of the most exciting tourism and residential projects, whilst Glenn Schaeffer brings a wealth of casino resort experience and expertise from his successful career at Mandalay Resort Group." (E-04.17.07)

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