The merger combines corporations under a single corporation,management structure and name: Kah-Nee-Ta High Desert Resort &Casino. The $5-million expansion is the most extensive constructionproject since the casino was built for $6 million in 1996. The goalis to increase room occupancy, effect greater casino spending perroom night, and improve customer service.

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"After considerable evaluation and market research on thepotential benefits of the proposed merger, both boards of directorsand the Tribal Council agreed that this move makes a lot of sense,"says Olney Patt Jr., chairman of the Tribal Council of TheConfederated Tribes of Warm Springs. "With diminishing timberrevenues and other issues challenging our long-term economicsustainability and self-sufficiency, we need to embrace thisopportunity to better use all our resources to benefit the entirecommunity.

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"The integrated corporation provides new opportunities torepurpose and re-energize the Kah-Nee-Ta brand, assume a morecompetitive market posture, enhance operational efficiencies andaugment sustained revenue growth."

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Wholly owned and operated by The Confederated Tribes of the WarmSprings, the resort offers a complete gaming casino with slots andtable games, an 18-hole golf course, natural hot springs-fed pools,a full service spa and a variety of lodging options including thehotel, tee pee camping and RV sites. Beginning this summer andcontinuing over the next 24 months, the $5-million upgradeincludes:

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---the complete remodeling of 107 guest rooms, beginning in thefourth quarter this year and concluding in March 2002;

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---an expansion and repositioning of the resort's Juniper Roomas casual family dining, including an exhibition-cooking buffet,and the conversion of the Pinto Deli to fine dining. Completionscheduled for the first quarter of next year.

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--A renovation and expansion of the convention and banquetfacilities to 10,000 sf, and a renovation of the upper and lowerhotel lobbies; and'--and expansion of the casino for the additionof more slots and a larger variety of table games.

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"We have already completed development of a new logo symbolizingthe earth, sun and three tribes, and will be reaching out to ourtarget markets over the next many months,"says Rudy Clements,chairman of the Kah-Nee-Ta board of directors.

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