FX Real Estate and Entertainment Inc. Chairman Robert F.X. Sillerman Exercises Rights in Pending Rights Offering and Purchases 3

  
    
  
  
    
      FX Real Estate and Entertainment Inc. (NASDAQ: FXRE), announced today 
      that Robert F.X. Sillerman, the Company’s 
      Chairman and Chief Executive Officer, has exercised all of the rights he 
      received in the Company’s pending rights 
      offering, resulting in his purchase of 3,037,265 shares at a price of 
      $10 per share. Mr. Sillerman had agreed to subscribe for these shares 
      under the terms of his previously announced investment agreement with 
      FXRE.
    
    
      As previously announced, FXRE stockholders of record on March 6, 2008 
      are receiving the right to purchase one share of FXRE common stock at a 
      price of $10 per share for every two shares of common stock held on this 
      date. As part of the initial transaction that created FXRE in June 2007, 
      holders of approximately 50% of FXRE's outstanding common stock, 
      representing approximately 20 million shares, waived the right to 
      participate in the rights offering. As a result, approximately 9.9 
      million shares will be offered in the rights offering, representing 
      gross proceeds of approximately $99 million.
    
    
      In addition to purchasing the aforementioned shares, Mr. Sillerman and 
      The Huff Alternative Fund, L.P. have entered into investment agreements 
      with FXRE pursuant to which they have agreed to purchase shares in the 
      rights offering that are not otherwise subscribed for by stockholders, 
      if any, at the same $10 per share offering price. For more information 
      about these investment agreements with Mr. Sillerman and Huff, please 
      see the Company’s Form 8-K filed with the 
      Securities and Exchange Commission on January 10, 2008, which can be 
      viewed at the SEC’s website at www.sec.gov.
    
    
      A registration statement for the rights and the shares of FXRE common 
      stock underlying the rights has been filed with and declared effective 
      by the Securities and Exchange Commission (“SEC”). 
      A copy of the final prospectus from the registration statement and 
      additional material relating to the rights offering were mailed on or 
      about March 11, 2008, to stockholders of record as of March 6, 2008. 
      Stockholders will also be able to obtain a copy of the prospectus and 
      the other materials by contacting Mellon Investor Services, the 
      information agent for the rights offering, at [phone] for 
      domestic callers and [phone] for foreign callers.
    
    
      FXRE’s common stock is listed and traded on 
      the NASDAQ Global Market under the symbol “FXRE.” 
      The rights, which are transferable, are listed for trading on The NASDAQ 
      Global Market under the symbol “FXRER.”
    
    
      This press release is not an offer to sell nor a solicitation of any 
      offer to buy any securities in any state or jurisdiction, nor shall 
      there by an sale of these securities in any state or jurisdiction in 
      which such offer, solicitation or sale would be unlawful prior to the 
      registration or qualification under the securities laws of any 
      jurisdiction. These securities may not be offered or sold in the United 
      States absent registration under or any exemption from the registration 
      requirements of the Securities Act of 1933, as amended.
    
    
      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.