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River Rock Entertainment Authority Announces Tender Offer for up to $30 Million Aggregate Principal Amount of Its Outstanding 9-3/4% Senior Notes Due 2011

GEYSERVILLE, Calif.-(Business Wire)-August 27, 2008 - River Rock Entertainment Authority (the "Authority"), a governmental instrumentality of the Dry Creek Rancheria Band of Pomo Indians, a federally recognized Indian tribe (the "Tribe"), today announced that it has commenced a tender offer to purchase for cash up to $30 million principal amount of its outstanding 9-¾% Senior Notes due 2011 (the "Notes"), upon the terms and subject to the conditions set forth in an Offer to Purchase dated August 27, 2008 (the "Offer to Purchase"). The Offer to Purchase will expire on September 24, 2008, unless extended or earlier terminated (the "Expiration Date").

The total consideration for each $1,000 principal amount of Notes validly tendered and not withdrawn pursuant to the Offer to Purchase will be $1,051.25 (the "Total Consideration"), which amount includes an early tender premium of $30.00 per $1,000 principal amount of Notes (the "Early Tender Premium"). The Total Consideration minus the Early Tender Premium will be $1,021.25 per $1,000 principal amount of Notes (the "Tender Offer Consideration"). The Total Consideration will be payable in respect of Notes validly tendered and not withdrawn on or prior to 5:00 p.m., New York City time, on September 10, 2008 (the "Early Tender Date"). Holders of Notes ("Holders") who validly tender their Notes after the Early Tender Date but on or prior to the Expiration Date will be eligible to receive only the Tender Offer Consideration.

The date of payment for tendered Notes (the "Settlement Date") is expected to occur promptly following the Expiration Date, provided all conditions to the Offer to Purchase have been satisfied or waived. The scheduled Settlement Date is September 25, 2008, unless extended by us. Holders whose Notes are accepted for payment in the Offer to Purchase will receive accrued and unpaid interest in respect of such purchased Notes from the last interest payment date up to, but not including, the Settlement Date.

If the principal amount of the Notes tendered pursuant to the Offer to Purchase is greater than $30 million, we will accept Notes for purchase and pay Holders thereof on a pro rata basis. There is no condition that any minimum amount of Notes must be tendered in the Offer to Purchase for us to accept the Notes for payment. Tenders of Notes may be withdrawn at any time on or prior to September 10, 2008. Tendered Notes may not be subsequently withdrawn, except if the Offer to Purchase is terminated without any Notes being purchased.

The Authority's obligation to accept and pay for tendered Notes is conditioned upon the satisfaction or waiver of various conditions described in the Offer to Purchase, which may be waived by us at any time prior to the Settlement Date. We also reserve the right to terminate, withdraw or amend the Offer to Purchase at any time and from time to time, as described in the Offer to Purchase.

The Offer to Purchase is made only by the Offer to Purchase and the Letter of Transmittal. For information regarding the Offer, including information regarding the conditions to the Offer and the procedures for tendering Notes, please refer to the Offer to Purchase. You should read the Offer to Purchase before making a decision whether to tender the Notes.

We have retained Merrill Lynch & Co. to serve as the Dealer Manager for the Offer to Purchase. Questions regarding the Offer to Purchase may be directed to Merrill Lynch & Co at (888) 654-8637. We have selected Global Bondholder Services Corporation to serve as both Depositary and Information Agent for the Offer. If you are interested in participating in the Offer to Purchase, you should review all its terms and conditions in the Offer to Purchase and related documents. Requests for the Offer to Purchase, the Letter of Transmittal and related documents may be directed to Global Bondholder Services Corporation by telephone at (866) 794-2200. Beneficial owners may also contact their brokers, dealers, commercial banks, trust companies or other nominees through which they hold the Notes with questions and requests for assistance.

The Offer to Purchase is part of several transactions designed to provide funds for all or a portion of the costs of certain capital improvements projects on the Tribe's trust and adjacent lands that serve essential governmental purposes, including, without limitation, various road, drainage and landscaping infrastructure projects, design and engineering services, land purchase and the repurchase, through the Offer to Purchase, of outstanding Notes that were previously issued to finance such projects. The majority of the components of the projects are required to make the current operations more efficient and improve services to the Tribe's reservation and our gaming and entertainment facility. We expect that these transactions will enable us to complete a portion of the preparatory site work necessary for our proposed resort development project, including a new and expanded “Tuscan-themed” casino and hotel with luxury resort amenities.

The total estimated cost of the projects (excluding debt service) is approximately $84.8 million, which we and the Tribe expect to finance from cash on hand, a new term loan and other indebtedness. The Offer to Purchase will enable us to reduce outstanding senior indebtedness and give us additional flexibility to finance the projects. Concurrently with the consummation of the Offer to Purchase, we intend to borrow $20.0 million (the “Term Loan”) pursuant to a term loan agreement (the “Term Loan Agreement”) with an affiliate of the Dealer Manager, and we will contribute the net proceeds of the Term Loan to the Tribe. The Term Loan will be unsecured. Amounts outstanding under the Term Loan are expected to bear interest at a rate of 9.75% per annum and mature on November 1, 2011. The Term Loan Agreement would not contain any financial maintenance covenants but would include restrictions on additional indebtedness and other covenants and events of default customarily included in loan agreements for similar transactions. The Term Loan Agreement would give us the ability to incur up to an additional $5.0 million, on the same terms as the initial $20 million, upon satisfaction of certain conditions, including that the additional borrowing be permitted indebtedness under the Indenture governing the Notes (the "Indenture").

Other proposed terms would include that all or part of the Term Loan may be exchanged, at the lender’s election, for additional Notes to be issued under the Indenture. For every $1,000 principal amount of Term Loan exchanged, the lender would be entitled to receive new Notes, the terms of which would be substantially identical to the outstanding Notes, in a principal amount of $1,000 plus any applicable premium, which premium, if any, would be computed by a formula based on an average bid price for the Senior Notes at or about the date of exchange. The Term Loan could be prepaid at any time without penalty. Although we intend to consummate the Term Loan on the terms described above, there can be no assurance that we will be successful in obtaining financing on these or other terms or conditions.

In connection with these transactions, as previously announced, on July 19, 2008, the Tribe adopted a master utilities ordinance that provides for the assessment against our gaming operations of certain fees for municipal services, products or benefits rendered by the Tribe which are reasonably necessary or desirable to the operation of our gaming and entertainment facility. At closing, we intend to distribute to the Tribe (i) infrastructure assets previously financed with the proceeds of the Notes aggregating approximately $28.7 million and (ii) an additional amount permitted to be distributed under the Indenture of approximately $34.7 million. We expect to pay approximately $11.5 million in master utilities fees for the 2009 fiscal year based on projections provided to us from the Tribe. A number of factors may result in adjustments to the projected amount, including increases or decreases in operating expenses of the utilities and actual debt service relating to the Tribe's indebtedness.

This press release shall not constitute an offer to buy or solicitation of an offer to sell, nor shall there be any purchase or sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful.

River Rock Entertainment Authority

We are a political instrumentality of the Dry Creek Rancheria Band of Pomo Indians, a federally recognized self-governing Indian tribe. The Tribe has 975 enrolled members and approximately 75-acre reservation in Sonoma County, California. We own and operate the River Rock Casino, a gaming and entertainment facility which is located on the Tribe’s reservation and overlooks the scenic Alexander Valley, approximately 75 miles north of San Francisco, California. The River Rock Casino features 35,500 square feet of gaming space containing 1,600 Class III slot and video poker gaming machines, 22 table games, as well as a full-service restaurant.

This press release includes certain "forward-looking statements" that involve many risks and uncertainties. When used, the words "believes, " "anticipates, " "plans, " "expects, " "intends, " "estimates, " "proposes, " "seeks, " "continues, " "may, " "will" or similar expressions and similar words or phrases, or the negative thereof, unless the context requires otherwise, are intended to identify forward-looking statements.

These forward-looking statements are based on the Authority's management’s present expectations and beliefs about future events. As with any projection or forecast, these statements are inherently susceptible to uncertainty and changes in circumstances. We are under no obligation to, and expressly disclaim any obligation to, update or alter the forward-looking statements whether as a result of such changes, new information, subsequent events or otherwise.

Important factors that could cause actual results to differ materially from those reflected in such forward-looking statements and that should be considered in evaluating our outlook are listed in the Offer to Purchase. Please see the risk factors included in our Annual Report on Form 10-K for the year ended December 31, 2007 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2008 and June 30, 2008 for a more detailed discussion of the foregoing and certain other factors that could cause actual results to differ materially from those reflected in such forward-looking statements and that should be considered in evaluating our outlook.

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