Robert F.X. Sillerman and The Huff Alternative Fund Purchase 4.97 Million Shares of FX Real Estate and Entertainment Inc.'s Comm

  
    
  
  
    
      FX Real Estate and Entertainment Inc. (NASDAQ: FXRE), announced today 
      that Robert F.X. Sillerman, the Company’s 
      Chairman and Chief Executive Officer, and The Huff Alternative Fund, 
      L.P. and an affiliate, together a principal stockholder of the Company, 
      have purchased a total of 4.97 million shares of the Company’s 
      common stock at $10 per share. Combined with the purchases made by Mr. 
      Sillerman and Huff during the pendancy of the Company’s 
      recently completed rights offering, Mr. Sillerman and Huff purchased a 
      total of approximately 5.3 million and 3.8 million shares, respectively, 
      at $10 per share. The Company raised a total of $98.7 million from the 
      rights offering (including the purchases by Sillerman and Huff).
    
    
      Mr. Sillerman stated, “The magnitude of the 
      investments made by me and the Huff funds evidences our strong belief in 
      the Company’s prospects and business plan and 
      our commitment to building value for the Company’s 
      stockholders. We are pleased with the successful conclusion of our new 
      public company’s first capital raising 
      initiative and look forward to the next steps in the development of our 
      location-based entertainment projects that exploit our iconic content 
      and brands.”
    
    
      In connection with its purchase of shares, the Huff Fund received the 
      right to appoint a designee to serve on the Company’s 
      Board of Directors. Immediately following its purchase, the Huff Fund 
      selected Bryan Bloom as its director designee. Mr. Bloom has served as 
      counsel of W.R. Huff Asset Management Co. and its affiliates for the 
      past fourteen years.
    
    
      The Company also announced that Michael Meyer has been appointed to 
      serve on the Board of Directors. Mr. Meyer is the founding partner of 17 
      Broad LLC, a diversified investment vehicle and securities consulting 
      firm. Prior to founding 17 Broad LLC, from 2002 to 2007, Mr. Meyer 
      served as Managing Director and Head of Credit Sales and Trading for 
      Bank of America. Prior to that, Mr. Meyer spent four years as the Head 
      of High Grade Credit Sales and Trading for UBS.
    
    
      For more information about the transactions between the Company, Mr. 
      Sillerman and the Huff fund, please see the Company’s 
      public filings with the Securities and Exchange Commission, including 
      the Company’s Forms 8-K filed on January 10, 
      2008, April 1, 2008 and May 15, 2008, which can be viewed at the SEC’s 
      website at www.sec.gov.
    
    
      About FX Real Estate and Entertainment
    
    
      FX Real Estate and Entertainment owns 17.72 contiguous acres of land 
      located at the southeast corner of Las Vegas Boulevard and Harmon Avenue 
      in Las Vegas, Nevada, known as the Park Central site. FXRE intends to 
      pursue a hotel, casino, entertainment, retail, commercial and 
      residential development project on the Park Central site. FXRE has 
      license agreements with Elvis Presley Enterprises, Inc., an 85%-owned 
      subsidiary of CKX, Inc. (NASDAQ: CKXE), and Muhammad Ali Enterprises 
      LLC, an 80%- owned subsidiary of CKX, which allows it to use the 
      intellectual property and certain other assets associated with Elvis 
      Presley and Muhammad Ali in the development of its real estate and other 
      entertainment attraction-based projects. FXRE currently anticipates that 
      the development of the Park Central site will involve multiple elements 
      that incorporate the Elvis Presley assets and theming. In addition, the 
      license agreement with Elvis Presley Enterprises grants FXRE the right 
      to develop, and it currently intends to pursue the development of, one 
      or more hotels as part of the master plan of Elvis Presley Enterprises, 
      Inc. to redevelop the Graceland property and surrounding areas in 
      Memphis, Tennessee.
    
    
      In addition to its interest in the Park Central Property, its plans with 
      respect to a Graceland-based hotel, and its intention to pursue 
      additional real estate and entertainment-based developments using the 
      Elvis Presley and Muhammad Ali intellectual property, FXRE, through 
      direct and indirect wholly owned subsidiaries, owns 1,410,363 shares of 
      common stock of Riviera Holdings Corporation [AMEX:RIV], 
      a company that owns and operates the Riviera Hotel & Casino in Las 
      Vegas, Nevada and the Blackhawk Casino in Blackhawk, Colorado.