NEWPORT BEACH, Calif., Feb. 15 /PRNewswire/ -- Festival Fun Parks, LLC
(the "Company") has entered into a senior credit agreement with Merrill
Lynch Business Financial Services, Inc. ("Merrill Lynch") and an investment
agreement with Laminar Direct Capital L.P. ("Laminar") and certain other
financial institutions.

    The Company signed a $141,500,000 senior credit agreement (the "Credit
Agreement") dated as of February 6, 2008 among the Company as borrower and
Merrill Lynch, in its capacity as agent for the lenders, whereby, the
lenders thereunder will provide a seven year term loan facility and
revolving credit facility to the Company (the "senior financing").
Simultaneously, with the entry into the Credit Agreement, the Company
signed a $61,500,000 investment agreement (the "Investment Agreement")
dated as of February 6, 2008 among the Company and Laminar, in its capacity
as agent for the lenders, which is subordinated to the senior financing
(the "subordinated financing").

    On January 30, 2008, the Company and Palace Finance, Inc. announced the
extension of their cash tender offer to purchase any and all of their
outstanding 10-7/8% Senior Notes due 2014. The Company will use the
proceeds of the senior financing and subordinated financing to finance the
note purchase, together with refinancing existing credit facilities within
the group and for working capital purposes.

    As described in the Credit Agreement and Investment Agreement, one of
the conditions to the senior financing and subordinated financing that has
been arranged by the Company is that the landlords under certain leases
must provide waivers to the new lenders. The Company expects that this
financing condition and all other conditions to financial close will be
satisfied next week.

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