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Buffalo Creek Casino construction stops

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August 27, 2008

BUFFALO, NY - Seneca Gaming Corp. spokesman Phil Pantano said Wednesday that construction of the $333 million Buffalo Creek Casino has been suspended due to economic reasons. He said the federal court decision declaring the casino illegal was not a factor and is expected to be appealed.

The Seneca company formally notified the U.S. Securities and Exchange Commission on August 14th that it was reassessing its construction projects "in light of greater demands on our available cash, increased competition and challenging economic and capital market conditions."

Construction has also stopped on the $130 million expansion of the Seneca's casino and hotel in Salamanca. Pantano said both work stoppages are temporary, but could not say when they might resume.

Seneca Gaming Corp. Chairman Barry Snyder Sr. said the tribe is watching the economy. "In keeping with our financial commitments to our owner, the Seneca Nation of Indians, and with our obligations to bondholders, we have decided that it is our responsibility to suspend our construction activities at this time as we endeavor to preserve the continuing strength and vitality of our company," he said.

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