Mandalay Announces Settlement Agreement

PRNewswire-FirstCall LAS VEGAS Nov. 26 :

Mandalay Resort Group today announced that its 53.5%-owned Detroit
affiliate, MotorCity Casino, has signed a settlement agreement with the
Lac Vieux Desert Band of Lake Superior Chippewa Indians. The settlement
agreement must still be approved by the courts in which the Lac Vieux
litigation is pending. The parties will also request dissolution of the
injunction preventing MotorCity from proceeding with construction of its
expanded facility. Upon the courts` approval of the settlement agreement,
MotorCity will pay to the Lac Vieux Tribe $3 million, plus attorneys`
fees. Under the terms of the settlement agreement, MotorCity will pay an
additional $5.75 million on the first and second anniversaries of the
first payment and $1 million annually for 25 years, beginning on the third
anniversary. The occurrence of certain events would suspend, lower and/or
terminate the payments. There can be no assurance as to when the courts
will act with respect to this matter, or what action the courts will take.

Mandalay Resort Group owns and operates 11 properties in Nevada: Mandalay
Bay, Luxor, Excalibur, Circus Circus, and Slots-A-Fun in Las Vegas; Circus
Circus-Reno; Colorado Belle and Edgewater in Laughlin; Gold Strike and
Nevada Landing in Jean and Railroad Pass in Henderson. The company also
owns and operates Gold Strike, a hotel/casino in Tunica County,
Mississippi. The company owns a 50% interest in Silver Legacy in Reno, and
owns a 50% interest in and operates Monte Carlo in Las Vegas. In addition,
the company owns a 50% interest in and operates Grand Victoria, a
riverboat in Elgin, Illinois, and owns a 53.5% interest in and operates
MotorCity in Detroit, Michigan.