Prime Hospitality Corp. Announced the Determination of the Price for its 8 - 3/8% Senior Subordinated Notes due 2012

Prime Hospitality Corp. Announced the Determination of the Price
for its 8 - 3/8% Senior Subordinated Notes due 2012 


FAIRFIELD, N.J., Sept. 24  /PRNewswire-FirstCall/ -- Prime Hospitality Corp.
(NYSE:PDQ) ("Prime Hospitality") announced today the determination of the
consideration to be paid in its previously announced cash tender offer and
consent solicitation for any and all of its outstanding 8 - 3/8% Senior
Subordinated Notes due 2012 (the "Notes").

The total consideration for the Notes, which will be payable in respect of
Notes accepted for payment that were validly tendered with consents and not
withdrawn on or prior to 5:00 p.m., New York City time, on September 22, 2004,
will be $1,162.53 for each $1,000 principal amount of Notes. Notes accepted for
payment that are validly tendered subsequent to 5:00 p.m., New York City time,
on September 22, 2004 but on or prior to 8:00 a.m., New York City time, on
October 8, 2004, will receive the purchase price of $1,132.53 for each $1,000
principal amount of Notes accepted for payment in the tender offer, which is
equal to the total consideration minus the consent payment of $30 per $1,000
principal amount of Notes.  In addition to the total consideration or purchase
price, as the case may be, payable in respect of Notes purchased in the tender
offer, the Company will pay accrued and unpaid interest to but not including
the payment date for Notes purchased in the tender offer.

The total consideration for the Notes was determined as of 2:00 p.m., New York
City time, today by reference to a fixed spread of 50 basis points above the
yield to maturity of the 4.375% U.S. Treasury Note due May 15, 2007.

The tender offer will expire at 8:00 a.m., New York City time, on October 8,
2004, unless extended or earlier terminated. The tender offer and related
consent solicitation are being conducted in connection with Prime Hospitality's
previously announced agreement to merge with an affiliate of The Blackstone
Group (the "Merger"). The consummation of the tender offers is conditioned upon
the completion of the Merger, among other conditions. The payment date will
promptly follow the tender offer expiration date.

This press release is neither an offer to purchase nor a solicitation of an
offer to sell the Notes. The tender offer and consent solicitation are being
made only pursuant to the Offer to Purchase and Consent Solicitation Statement
dated September 9, 2004 and the related Consent and Letter of Transmittal, as
the same may be amended from time to time. Persons with questions regarding the
tender offer or the consent solicitation should contact the Information Agent
at [phone] (for banks and brokers only) or [phone] (for all
others toll free) or Banc of America Securities LLC or Bear, Stearns & Co. Inc.
which are acting as Dealer Managers and Solicitation Agents for the tender
offer and the consent solicitation.  Banc of America Securities LLC can be
contacted at [phone] (toll free) and [phone] and Bear, Stearns &
Co. Inc. can be contacted at (877) 696-BEAR (toll free).

This release is for informational purposes only and is neither an offer to
purchase nor a solicitation of an offer to sell the Notes. The offer to buy the
Notes is only being made pursuant to the tender offer and consent solicitation
documents, including the Offer to Purchase and Consent Solicitation Statement
that Prime Hospitality has distributed to holders of the Notes. The tender
offer and consent solicitation are not being made to holders of the Notes in
any jurisdiction in which the making or acceptance thereof would not be in
compliance with the securities, blue sky or other laws of such jurisdiction. 
In any jurisdiction in which the tender offer or consent solicitation are
required to be made by a licensed broker or dealer, they shall be deemed to be
made by Banc of America Securities LLC or Bear, Stearns & Co. Inc. on behalf of
the Company. 

DATASOURCE: Prime Hospitality Corp.



CONTACT:  Richard Szymanski, [phone], for Prime Hospitality

Corp.



Web site:  http://www.primehospitality.com/ 



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