Exhibit 99.1

CONTACT: JOHN P. SALDARELLI
         SECRETARY AND TREASURER
         (914) 242-7700

                              FOR IMMEDIATE RELEASE

            AMERICAN REAL ESTATE PARTNERS, L.P. PRICES DEBT OFFERING

MOUNT KISCO, N.Y., May 7, 2004--American Real Estate Partners, L.P. (NYSE:ACP)
announced today that it has priced its previously announced offering of senior
notes due 2012. The notes, in the aggregate principal amount of $353 million and
priced at 99.266%, will bear interest at a rate of 8.125% per annum. Closing of
the offering is expected to occur on or about May 12, 2004.

         The notes have not been registered under the Securities Act of 1933 or
applicable state securities laws and may not be offered or sold in the United
States absent registration or an applicable exemption from the registration
requirements of the Securities Act of 1933 and applicable state securities laws.

         American Real Estate Partners, L.P. is a master limited partnership.

         This release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, many of which
are beyond our ability to control or predict. Among these risks and
uncertainties are changes in general economic conditions, the extent, duration
and strength of any economic recovery, the extent of any tenant bankruptcies and
insolvencies, our ability to maintain tenant occupancy at current levels, our
ability to obtain, at reasonable costs, adequate insurance coverage, competition
for investment properties and other risks and uncertainties detailed from time
to time in our filings with the SEC, including our 2003 Form 10-K.