Mohegan Sun at Pocono Downs held a ground breaking ceremony today for its new $180 million casino and entertainment complex, bringing the Company one step closer to its goal of being the leading gaming and entertainment experience in the Commonwealth of Pennsylvania.

The development, named "Project Sunrise", will create a spectacular yet unique gaming experience for Northeast Pennsylvania residents and visitors to the area. The approximately 300,000 square foot project will create hundreds of construction jobs, dynamic opportunities for local vendors, materials providers and craftsmen, and add approximately 500 additional permanent jobs.

A contingent of state and local political leaders and leading members of the business community attended the ceremony. Mohegan Sun at Pocono Downs President/CEO Bobby Soper called the groundbreaking "The fulfillment of promises made and kept by the Mohegan Tribal Gaming Authority".

The centerpiece of the project is a magnificent circular casino with room for 2,000 slot machines. The gaming space includes a glamorous high-limit area and comfortable non-smoking gaming space. Gamers will also have enclosed access to the existing casino and track amenities, giving them convenient access to Mohegan Sun at Pocono Downs' live harness racing and simulcast operations.

The new Mohegan Sun at Pocono Downs will present an array of restaurant options including a 200-seat gourmet steakhouse, a fabulous 330-seat buffet, an upscale food court with several outlets along with two other full-service restaurants.

Entertainment, in the form of visually and socially attractive lounges, will be a priority in the new project. At the heart of the new casino will be a fabulous 3,650 square foot center bar and lounge. The complex will also be home to two additional lounges on the perimeter of the casino as well as an upscale VIP lounge and a high energy nightclub which will provide live nightly entertainment.

When it is time to stroll and shop, over 7,000 square feet will be designed for attractive retail stores. There will be four thousand parking spaces, including 800 valet parking spaces.

Construction of Project Sunrise is scheduled to be complete in the Summer of 2008.