BLB Investors, L.L.C. Acquires Wembley plc's U.S. Operations

LINCOLN, R.I.--(BUSINESS WIRE)--July 18, 2005--BLB Investors, L.L.C. ("BLB") today completed the acquisition of Wembley plc's ("Wembley's") U.S. operations, which include the Lincoln Park racino in Rhode Island and three greyhound tracks and one horse racing track in Colorado. The transaction was approved today by Wembley's shareholders after Friday's passage of legislation by the State of Rhode Island (the "State") that provided BLB with a long-term arrangement with respect to revenue sharing and an adjustment to such revenue sharing in the event that Rhode Island approves the establishment of a casino. With these assurances in place, BLB and its lenders were able to proceed with the closing of this transaction.

In 2004, BLB acquired a 22% interest in Wembley. This interest, valued at $116 million, was exchanged for the equity ownership of Wembley's U.S. operations with the balance of the $455 million acquisition price being funded through credit facilities provided by Merrill Lynch & Co., Deutsche Bank Securities and J.P. Morgan Chase Bank N.A.

“We look forward to working with the teams in both states.”

Lincoln Park will operate under a 15-year revenue sharing agreement with the Rhode Island Lottery Commission that was authorized under Friday's legislation, which was passed overwhelmingly by both chambers of the Rhode Island General Assembly and signed into law by Governor Donald L. Carcieri. Under the terms of the agreement, BLB can increase the total number of video lottery terminals operated at the facility to 4,752 from its current 3,002. BLB will be expected to meet certain performance standards during the course of the agreement, including one that requires an initial investment of $125 million for property improvements and another requiring BLB to create 500 new jobs, bringing total employment at the facility to 1,300.

The State assesses a gaming tax on the facility of 60.4% of gross revenue. The tax is expected to generate approximately $200 million in the current fiscal year and more than $325 million when the facility is fully developed.

"We are grateful for the extraordinary support we have received from Rhode Island's elected officials," stated BLB Co-CEO Len Wolman. In specifically citing the efforts of Senate President Joseph A. Montalbano, Speaker William J. Murphy and Governor Carcieri, Wolman stated, "Their diligence, professionalism and innovation have made this a win-win transaction for the State, the Town of Lincoln and our investors."

"We are committed to making Lincoln Park one of the most attractive gaming venues in the northeast, one of which the people of the State of Rhode Island will be proud," stated BLB Chairman Barry Sternlicht. "Our goal is to complement the exceptional beauty of the state, its tourism industry and the Providence Renaissance," echoed BLB Co-CEO Butch Kerzner.

The BLB owners also extended their gratitude to the employees of Lincoln Park for their support of the legislative effort. "The strength of the Wembley operations in both Rhode Island and Colorado is with its workforce," Wolman stated. "We look forward to working with the teams in both states."

BLB Investors is comprised of three of the world's most accomplished leisure and gaming operators, developers and managers. The group includes Kerzner International Limited (NYSE: KZL), Starwood Capital Group Global, LLC and Waterford Group, LLC.

About Kerzner International Limited

Kerzner International Limited (NYSE: KZL) ("Kerzner") is a leading international developer and operator of destination resorts, casinos and luxury hotels. The Company's flagship brand is Atlantis, which includes Atlantis, Paradise Island, a 2,317-room, ocean-themed destination resort located on Paradise Island, The Bahamas. Atlantis, Paradise Island is a unique destination resort featuring three interconnected hotel towers built around a 7-acre lagoon and a 34-acre marine environment that includes the world's largest open-air marine habitat and is the home to the largest casino in the Caribbean. The Company also developed and receives certain income derived from Mohegan Sun in Uncasville, Connecticut, which has become one of the premier casino destinations in the United States. In the U.K., Kerzner is currently developing a casino in Northampton and received its Certificate of Consent from the U.K. Gaming Board in 2004. In its luxury resort hotel business, the Company manages ten resort hotels primarily under the One&Only brand. The resorts, featuring some of the top-rated properties in the world, are located in The Bahamas, Mexico, Mauritius, the Maldives and Dubai. An additional One&Only property is currently in the planning stages in South Africa. For more information concerning the Company and its operating subsidiaries, visit www.kerzner.com.

About Starwood Capital Group Global, LLC

Starwood Capital Group Global, LLC ("Starwood Capital") is a privately held global investment management firm based in Greenwich, Connecticut that specializes in real estate-related investments on behalf of select private and institutional investor partners. Since inception in 1991, Starwood Capital and its predecessors have completed over 300 transactions in which Starwood Capital and its affiliates have invested approximately $3.0 billion of equity capital in transactions representing approximately $9.0 billion worth of real estate and related assets. Starwood Capital and its affiliates have successfully executed an investment strategy that includes building business enterprises around core real estate portfolios, including: (a) the recapitalization, reorganization and expansion in 1995 of a real estate investment trust in financial difficulty to become the company that is today known as Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT), a leading global owner/operator of hotels, with ownership of such brands as "Sheraton", "Westin", "The St. Regis Luxury Collection" and "W"; (b) contributing a substantial mezzanine debt portfolio to create the company which is today known as iStar Financial, Inc. (NYSE: SFI), one of the leading publicly-owned finance companies in the US focused on commercial real estate; and (c) the acquisition in 2003, in partnership with affiliates of Goldman Sachs & Co., of National Golf Properties/American Golf Corporation, one of the largest owner/operators of golf courses and related facilities in the US. For more information regarding Starwood Capital, see www.starwoodcapital.com.

About Waterford Group, LLC

Consisting of five subsidiaries -- Waterford Hotel Group, Waterford Venue Services, Waterford Hospitality Group, Wolman Construction and Waterford Gaming - Waterford Group, LLC ("Waterford Group") is a collection of companies and partnerships that combine to specialize in all aspects of hotel, gaming and public facility projects, including initial development, management and ownership. This versatility has led to years of steady growth without compromising the company's steadfast principles of quality assurance. Waterford Group has been involved in developing and operating projects totaling more than $2 billion.