Lakes Entertainment, Inc. Announces Signing Letter of Intent to Sell Land in Las Vegas

MINNEAPOLIS--(BUSINESS WIRE)--April 7, 2003--Lakes Entertainment, Inc. (Nasdaq:LACO) today announced that it has signed a Letter of Intent to sell the approximate 3.5 acre undeveloped site which had been previously designated for development of the Chateau time share project with Diamond Resorts in Las Vegas, Nevada. Under the terms of the Letter of Intent, Lakes will sell the property to an entity to be managed and operated by Marriott Ownership Resorts, Inc. for a purchase price of $15.0 million in cash. Certain terms and conditions of this Letter of Intent will need to be satisfied prior to the completion of this sale. In addition to the $15.0 million payment, Lakes will receive $1.0 million as repayment of a loan previously made to Chateau by Lakes. Subject to the satisfaction of the necessary terms and conditions, Lakes anticipates the closing will occur in April or May 2003.