DEBBIE  REYNOLDS  HOTEL &  CASINO,  INC.  ANNOUNCES  THAT  CENTRAL  FLORIDA
INVESTMENTS HAS ELECTED TO CANCEL ITS OFFER TO PURCHASE THE CORPORATION

For Immediate Release

     Las Vegas,  Nevada,  May 11, 1998 - Debbie  Reynolds Hotel & Casino,  Inc.,
("DRHC"),  (OTC:  DEBIQ) a Nevada  Corporation,  announces  today  that  Central
Florida Investments Inc., ("CFI"), an affiliate of David A. Siegel,  ("Siegel"),
Owner and President of Westgate Resorts, one of the largest timeshare developers
in the world, has notified DRHC of its election not to proceed with the offer to
purchase 92.5% of the Company for $15,600,000.

     Pursuant to the Alternative  Transaction  section of DRHC's Revised Plan of
Reorganization,  CFI and Calstar  Corporation,  ("Calstar"),  entered  into open
bidding for the Company.  CFI's bid of $15,600,000 to purchase 92.5% of DRHC was
the highest and best offer.  The remaining  7.5% ownership of DRHC will be split
between the unsecured creditors and the current  shareholders with the unsecured
creditors  receiving  5% and  the  current  shareholders  retaining  2.5% of the
Company.

     The offer was solely contingent to CFI's satisfactory completion of its due
diligence.  CFI was  allowed  30  days to  complete  its  due  diligence  and an
additional 30 days to close the transaction. On Friday May 8, 1998, CFI notified
DRHC of its election not to proceed with the transaction.

     Calstar's  offer to purchase  92.5% of DRHC for  $15,500,000  was awarded a
back-up offer position by the  Bankruptcy  Court. . The remaining 7.5% ownership
of  DRHC  will  be  split  between  the  unsecured  creditors  and  the  current
shareholders  with  the  unsecured   creditors  receiving  5%  and  the  current
shareholders retaining 2.5% of the Company.

     The back-up  offer  position  allows  Calstar  the right to  purchase  DRHC
pending the completion of its due diligence process. The Calstar offer is solely
contingent upon Calstar's satisfactory completion of its due diligence.  Calstar
is allowed 30 days to complete its due  diligence  and an  additional 30 days to
close the transaction.  This transaction is scheduled to close on or before July
7, 1998,  however,  there can be no assurance,  until Calstar  completes its due
diligence, that the transaction will close.

     Additionally,  the  Hollywood  Motion  Picture  &  Television  Museum,  the
non-profit  organization which owns the Hollywood Memorabilia  collection on the
property,  has elected to  terminate  its  relationship  with DRHC and removed a
majority of its collection from the property.  The Hollywood museum operation at
the property has been closed.

     On July 3,  1997 the  Company  filed for  relief  under  Chapter  11 of the
Bankruptcy  Code,  due to the  inability  of the Company to generate  sufficient
funds to cover,  on a timely  basis all of its debts.  The  Company  was seeking
reorganization  of its debts.  Also  filing  were  subsidiary  companies  Debbie
Reynolds  Management  Company and Debbie Reynolds  Resorts,  Inc. In addition to
filing personal  bankruptcy  under Chapter 11, Miss Debbie Reynolds  resigned as
Chairman  of the  Board,  Director  and an Officer  of Debbie  Reynolds  Hotel &
Casino,  Inc., Debbie Reynolds  Management  Company and Debbie Reynolds Resorts,
Inc.

For more information, please call Todd Fisher, CEO, (702) 734-0711.