Exhibit 99.1

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

                              FOR IMMEDIATE RELEASE

  AMERICAN REAL ESTATE PARTNERS, L.P. ACQUIRES WATERFRONT GOLF COMMUNITY AND
                LAND FOR RESIDENTIAL DEVELOPMENT IN SOUTHEAST FLORIDA


         MOUNT KISCO, N.Y., July 22, 2004. American Real Estate Partners, L.P.
(NYSE:ACP) ("AREP") announced today that it has completed an acquisition in Vero
Beach, Florida. AREP, through its subsidiaries, including Vero Beach Acquisition
LLC and Grand Harbor Management LLC, purchased the two waterfront communities of
Grand Harbor and Oak Harbor and their respective golf courses, tennis complex,
fitness center, beach club and clubhouses. The acquisition also included
properties in various stages of development including vacant land for future
residential development, improved lots and finished residential units ready for
sale. The purchase price for all of the assets was approximately $75,000,000.
AREP plans to invest in the further development of the properties and the
enhancement of the existing infrastructure.

         AREP 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. Forward-looking statements may be
identified by words such as "expects," "anticipates," "intends," "plans,"
"believes," "seeks," "estimates," "will" or words of similar meaning and
include, but are not limited, statements about the expected future business and
financial performance of AREP and its subsidiaries. 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, risks
related to our hotel and casino operations, including the effect of regulation,
substantial competition, rising operating costs and economic downturns,
competition for investment properties, risks related to our oil and gas
operations, including costs of drilling, completing and operating wells and the
effects of regulation, and other risks and uncertainties detailed from time to
time in our filings with the SEC, including our 2003 Form 10-K, Form 10-Qs and
Form 8-Ks. We undertake no obligation to publicly update or review any
forward-looking information, whether as a result of new information, future
developments or otherwise.