Trump Hotels & Casino Resorts and Donald J. Trump Announce Comprehensive Recapitalization Plan;

Trump Hotels & Casino Resorts, Inc. announced today that the Company, Donald J. Trump and holders of approximately 57% of Trump Atlantic City Associates' First Mortgage Notes due 2006 (the "TAC Notes"), approximately 68% of Trump Casino Holdings, LLC's First Priority Mortgage Notes due 2010 (the "TCH First Priority Notes") and approximately 81% of Trump Casino Holdings, LLC's Second Priority Notes due 2010 (the "TCH Second Priority Notes," and together with the TCH First Priority Notes, the "TCH Notes") have entered into a support agreement (the "Support Agreement") in connection with the recapitalization of the Company pursuant to a plan of reorganization (the "Plan"). As part of the Plan, Donald J. Trump, who will remain the Company's Chairman and Chief Executive Officer, will invest approximately $71.4 million into the recapitalized Company. Mr. Trump's investment will consist of a $55 million cash equity investment and the conversion of approximately $16.4 million principal amount of TCH Second Priority Notes owned by him into shares of the recapitalized Company's common stock. Upon consummation of the Plan, Mr. Trump is expected to remain the largest individual stockholder of the Company, with beneficial ownership of approximately 27% of the Company's common stock.

The Plan calls for an approximately $400 million reduction in the Company's indebtedness with a reduced interest rate of 8.5%, representing annual interest expense savings of approximately $98 million. The Plan also permits a working capital facility of up to $500 million secured by a first priority lien on substantially all of the Company's assets (the "Working Capital Facility"), which is expected to allow the Company to refurbish and expand its current properties and permit the Company to enter into new and emerging jurisdictions, among other uses.

Donald J. Trump, the Company's Chief Executive Officer and Chairman, commented on the Plan, "I have never been more excited about the prospects for our Company. We now have the capacity to significantly expand the Trump brand into the ever-evolving gaming industry. I anticipate THCR achieving the same level of success as my other business and real estate endeavors." Scott C. Butera, the Company's Executive Vice President of Corporate and Strategic Development, added, "We are very pleased that we have come to a mutually beneficial agreement with our bondholders which successfully achieves our financial and strategic objectives and provides significant value to our stakeholders. In addition, we have developed strong working relationships with many institutional investors who we hope will continue to support the growth of our operations and brand. We are now positioned to capitalize on the numerous opportunities present in today's gaming and entertainment industry." Mr. Butera continued, "The proposed capital structure streamlines our organization and is expected to provide for increased operational efficiencies and financial flexibility. It will also make our Company easier to understand to the public and investment community."

Under the Plan, the holders of the TAC Notes and the unaffiliated holders of the TCH Notes would exchange their notes (approximately $1.8 billion aggregate principal amount) for an aggregate of approximately $74 million in cash, an aggregate of $1.25 billion principal amount of a new series of 8.5% senior second priority mortgage notes with a ten-year maturity and secured by a lien on substantially all of the Company's assets, subject to the Working Capital Facility (the "New Notes"), and approximately $395 million of common stock of the Company valued at the same per share purchase price as Mr. Trump's investment (assuming the unaffiliated stockholders of the Company fully exercise the warrants discussed below).

Existing unaffiliated stockholders of the Company would retain their interests in their current common stock (which would be diluted to 0.05% of the total equity interests of the recapitalized Company and are expected to be reclassified pursuant to a reverse stock split upon consummation of the Plan). The existing unaffiliated stockholders would also receive one-year warrants upon consummation of the Plan to purchase common stock at the same per share purchase price as Mr. Trump's investment. Proceeds from the exercise of the warrants (as well as any remaining shares of the $50 million of the Company's common stock reserved for warrant exercises, if not all of the warrants are exercised) would be distributed to the holders of the TAC Notes. If all of the warrants are exercised, the Company's unaffiliated stockholders would hold approximately 8.3% of the Company's common stock, the holders of TAC Notes would hold approximately 63.7% of the Company's common stock and the holders of the TCH First Priority Notes would hold approximately 1.4% of the Company's common stock, each on a fully-diluted basis.

Houlihan Lokey Howard & Zukin has been serving as the financial advisor to the TAC Noteholders involved in the discussions. David R. Hilty, Managing Director in the Financial Restructuring Group of Houlihan Lokey Howard & Zukin, commented, "This recapitalization puts the Company in a strong financial position with immediate access to significant capital. The TAC Noteholders are enthusiastic to be teaming up with Mr. Trump and to capitalize on the many opportunities generated by the Trump brand."

Chanin Capital Partners has been serving as the financial advisor to the TCH Noteholders involved in the discussions. "We are pleased that the Company has reached a consensual recapitalization with such a large percentage of its stakeholders. The transaction will position THCR for future growth and expansion," stated Russell A. Belinsky, Senior Managing Director of Chanin Capital Partners.

Upon consummation of the Plan, the Company is expected to transfer to Mr. Trump the former Trump's World's Fair site in Atlantic City, New Jersey and the Company's 25% interest in the Miss Universe pageant. The Company would also enter into a development agreement with the Trump Organization, pursuant to which the Trump Organization would have a right of first offer to serve as project manager, construction manager and/or general contractor with respect to construction and development projects for casinos and casino hotels and related lodging at the Company's existing and future properties. Mr. Trump has also agreed to grant the Company and its subsidiaries a new trademark license agreement for use of his name and likeness as well as enter into a services agreement with the Company.

The Support Agreement contemplates that the Company would commence reorganization proceedings by late November 2004 and that the Plan would be confirmed by mid-April 2005 and consummated by May 1, 2005. The Company intends to arrange for up to $100 million interim financing during the proceedings.

Gregg H. Feinstein, Director of Mergers & Acquisitions at Jefferies & Company, who advised the Special Committee of independent Directors of the Company's Board of Directors, noted, "This transaction is the culmination of a significant effort on the part of many constituencies. The public stockholders will have a compelling opportunity to share in the value which the Company believes will be generated going forward."

The implementation of the Plan is subject to a number of conditions typical in similar transactions including, among other things, the negotiation of the investment agreement and other documentation relating to the Company's arrangements with Donald J. Trump, the Plan and accompanying disclosure statement, the indenture governing the New Notes and other transaction documents. The Plan would also be subject to applicable government approvals, including court approval of the Plan and related solicitation materials, gaming authority approvals and other relevant filings. The definitive terms and conditions of the Plan would be outlined in a disclosure statement that would be sent to security holders entitled to vote on the Plan after confirmation by the court.

UBS Investment Bank has been serving as the Company's financial advisor in connection with the Plan. Tom Benninger, Global Head of UBS' Restructuring Group, commented, "This transaction was designed to provide many substantial benefits for the Company and its constituents. We are pleased to have been involved in the development of such a promising plan."

The recapitalized Company intends to apply to have its new common stock listed on the New York Stock Exchange or other national securities exchange upon the consummation of the Plan.


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