SOURCE: Superior Development Group, Inc.

August 07, 2006 10:51 ET

Superior Development Group, Inc. Announces Plans to Develop Casinos With Agreement to Acquire a 60% Interest in Triad Resorts, LLC

JACKPOT, NV -- (MARKET WIRE) -- August 7, 2006 -- Superior Development Group, Inc. (PINKSHEETS: SDVG) ("Company" or "Superior Development") announced today that the Company has entered into a memorandum of understanding to acquire a 60% interest in Triad Resorts, LLC ("Triad"), a Nevada Limited Liability Corporation that is developing casino and hotel properties for the resort destination gaming industry.

Under the agreement Superior Development will become the lead developer with a 60% ownership interest in Triad's planned Casino Resort developments in Jackpot, Elko and Wendover, Nevada. Triad's first project is scheduled to be in Jackpot and will be built on 113 acres of land controlled by Triad and properly zoned for the development. It will consist of a four-star condo/hotel featuring 301 rooms, a 50,000 square-foot building that will include a casino, spa and salon, three restaurants and gift shops, an indoor 30,000 square-foot water park with capacity for 550 people daily, a RV park with 80 full-service spaces, indoor climate controlled center that features bleacher seating for up to 4,000 people, as well as floor seating for 1,200 people and an outdoor multiuse arena featuring 100 indoor stalls and four concession stands. The casino developments in Elko and Wendover will feature the same type western theme.

Financing for each casino development is anticipated to be financed by senior debt of 65-70% of cost, a mezzanine loan and equity from Superior Development from the sale of convertible-preferred or common stock via a private placement. Under the Agreement with Triad, Superior Development will earn development fees estimated to be $18,000,000 for each casino, payable during construction of the casino as well as 60% of the revenue stream estimated to be $35,000,000 EBITDA for each casino operation. All three resorts are estimated to be operational in 24 to 60 months.

"We are pleased that Triad has selected our Company to be its partner and lead developer in this awesome venture," said Derrick Neal, Chairman and CEO of Superior Development. Triad's managing member, Patrick Howard also stated that, "We are excited to have Superior Development join in with us as we move forward to complete the financing and begin construction of our casino projects."

About Superior Development Group, Inc.

Superior Development Group, Inc. is a publicly traded multi-faceted real estate development Company that primarily develops affordable single and multifamily housing communities. The Company operates through subsidiaries which purchase raw land or undervalued properties, improves them and profits from the investment through development fees, sales income or rental income. In addition to prospective real estate housing opportunities Superior Development has also entered into the Resort Hotel and Casino business with the planned acquisition of Triad Resorts, LLC, a Nevada Limited Liability Corporation.

Additional information about Superior Development Group, Inc. is available online at www.superiordevelopmentgroup.com

About Triad Resorts, LLC

Triad Resorts, LLC is a Nevada Limited Liability Corporation formed for the purpose of developing major entertainment and hospitality centers in selected destination resort cities throughout the Western U.S. and selected international markets. The Company's mission is to bring sustainable economic stimulus to destination communities through responsible themed resort developments. The Company's initial Project is planned for Jackpot, Nevada.

Additional information about Triad Resorts, LLC is available online at www.triadresorts.com

Safe Harbor

This press release contains or may contain forward-looking statements such as statements regarding the Company's growth and profitability, growth strategy, liquidity and access to public markets, operating expense reduction and trends in the industry in which the Company operates. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in the Company's public filings. The Company assumes no obligation to update these forward-looking statements to reflect actual results, changes in risks, uncertainties or assumptions underlying or affecting such statements, or for prospective events that may have a retroactive effect.

Contact Information

  • Contact:
    Derrick D. Neal
    President/CEO
    (662) 627-3000