SOURCE: Riverhead Resorts

June 05, 2008 14:33 ET

Lebenthal & Co. Retained as Riverhead Resorts' Investment Banker

Action Underscores Confidence in the Future of the Multibillion Resort & Convention Complex

MELVILLE, NY--(Marketwire - June 5, 2008) - In a move that dramatically underscores the confidence of the financial community in the future of a proposed multibillion dollar resort and convention center on 755 acres of land on Long Island's east end, the Weber Law Group today announced that their client, Riverhead Resorts, has engaged the services of Lebenthal & Co. as its investment banker.

Don Secunda and Mitch Pally, partners in the law firm managing the strategic direction of the approval process for the complex in Riverhead, New York, stated that Lebenthal & Co. will serve as Structuring Agent, Placement Agent and Bond Underwriter for the project. Lebenthal will also identify funding sources and develop, structure, market, negotiate and execute the near-term and long-term capital needs for Riverhead Resorts.

Riverhead Resorts is comprised of managing member John Niven's Baldragon Homes of Dundee, Scotland, and New York's Bayrock Group. The $2 billion project consists of eight (8) themed resorts with a convention center and family entertainment center. Also planned are 1,900 hotel "keys" and 1,100 fractional condominium units distributed within each of the resorts. A central attraction will feature a 350-foot indoor ski mountain and an indoor waterpark, each of which will be climate controlled and open all year long.

"We are extremely pleased to have the opportunity to work with Riverhead Resorts and be part of its exciting vision for Long Island," stated James Lebenthal, Creative Director. President and CEO Alexandra Lebenthal expanded on her father's remarks, "This is an innovative project using groundbreaking financing involving a hybrid of municipal bonds and traditional financing. The project will play a central role in bolstering the economy of Long Island and, specifically, the Town of Riverhead. We are proud to be part of this effort."

Mr. Niven said Lebenthal's involvement underscores the strength of the proposal and the depth of the Riverhead Resorts team. "Every member of our development team is the best in its field. We have Weber Law Group, HOK Architecture, Cameron Engineering and LEDO International. It was clear that the missing piece was our investment bank, and we refused to lower our standards. With Lebenthal, we now have the best financial expertise available."

Julius Schwarz, Executive Vice President of Bayrock Group added, "We are delighted that Lebenthal, one of the great financial powerhouses, will be partnering with us to finance this project. Riverhead Resorts will completely transform the landscape of the travel and recreation industry by making our Long Island location a major destination resort, convention and recreational center on a national and global scale, and we are very pleased that Lebenthal shares our vision and has underwritten their faith and confidence in us and in this project."

For more information on the Riverhead Resorts proposal please visit their web site at www.riverheadresorts.com.

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