PRESS RELEASE

                                                                October 18, 2004

                   EL COMANDANTE'S OPERATING COMPANY OPTS FOR
              REORGANIZATION UNDER CHAPTER 11 OF THE BANKRUPTCY ACT

     Housing  Development  Associates  (HDA), owner of El Comandante, filed last
Friday,  October  15,  2004,  a  Bankruptcy  Petition  under  Chapter  11 of the
Bankruptcy  Act  before  the  U.S.  District  Court  for  the State of Delaware.

     The  basic  idea  in  the  reorganization  strategy is to protect the horse
racing  industry  and the more than 8,000 jobs which depend on the same. It also
seeks  to  allow  the  continuity  of the present management effort, prevent the
foreclosure of the land pending a federal process on the part of the bondholders
and  culminate  the negotiations with the investor who would be the new operator
of  El  Comandante  and who would repay the company's debt with the bondholders.

     Tom  Wilson,  President  of  HDA  sustained,  "We  understand  that  the
reorganization will give us the time necessary to rescue this industry, preserve
the  more  than  8,000 jobs it generates and thus continue with the negotiations
being  held with two of the international consortiums interested in investing in
Puerto  Rico."


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     Wilson  added,  "The  decision  has  been  made  to ensure the trust of the
betting  public,  to  protect  the  land  before  a possible condemnation by the
government,  and  for  the  operations  of  El Comandante to continue as usual."
An Informative Motion of this process was filed today before the Racing Board
informing also of the creation of a Reorganization Committee composed by Mr. Don
Kevane, Alberto Paraccini and  Charles Cuprill, that will direct the future of
the company during the process commenced.

     Alejandro  Fuentes  was appointed Chief Operating Officer (COO).  Effective
last  October  17,  2004,  Juan Manuel Rivera Gonzalez ceased in his position as
President  of  El  Comandante.  The  rest  of  the management and administrative
personnel  of  the  race  track  will  remain  unaltered  and  in  charge of the
day-to-day  functions  of  the  company,  including  the presentation of reports
related  to  the  operation  of  the  race  track  during  the  reorganization.

     Greg  Cortes,  Esq.,  will continue directing the negotiations process with
the  companies  seeking  to  operate  El  Comandante.

     The  announcement  of  this  reorganization  is  made to give El Comandante
sufficient  time  and  room  to  return  to  a  sound  financial condition which
guarantees  it many years of operation, and allows a resurgence of this industry
with  the  new  income  to  be  produced  by  the  video  game  machines.

     Since  the  beginning  of  this  year  HDA  has  been  immersed  in  an


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intense  process to protect its business, the racing industry and the 8,000 jobs
which  depend  on  it  before  the fiscal crisis in which the racetrack has been
sunken  in  past  years.  These  difficulties  are not exclusive of Puerto Rico.
Racetracks  in  other  parts of the world have seen a decrease in the income and
tendency  to  confront  this  situation has been the incorporation of video game
machines  to  reinvest  the  earnings  in  the  same  racing  industry.

     To  achieve this in Puerto Rico, approval of Act No. 139 was obtained which
allows the transformation of the racing industry with the incorporation of video
game  machines in the 650 betting stations.  The profit from these machines will
be  reinvested  in  the  same  Puerto  Rico  racing  industry.

     This  new  Racing Act was approved in order to give new life to an industry
which  has  been  confronting  financial  difficulties  for the past five years.
Among  the  most  pressing  situations El Comandante confronts is the refusal by
the  Government, through the Secretary of the Economic Development and Commerce,
Milton  Segarra,  and  the Racing Administrator, Julio Alvarez, to listen to the
claims  for  dialogue  made  by  the  Independent  Work  Committee, based on the
negotiations  with  the  investors.  Additionally, it is facing a foreclosure of
the racetrack land before the Federal Court.  The term for this process is until
October  20,


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2004.  The  foreclosure  was  initiated  by  a  group  of  bondholders.

     To  achieve the transformation of the industry, HDA commenced a Request for
Proposals  last  June  10,  2004  and  attracted  15  companies or international
consortiums  with  experience,  capitalization,  technology  and  reputation who
offered to operate El Comandante.  Of those 15, four finalists were selected and
thereafter  the negotiation process was commenced.  The companies will commit to
invest  $200  million  in  10  years.

     Presentations  were  made  to  different  government  officials  about  the
minimum  requirements  to  guarantee the investment.  The companies required the
installation  of  no  less  than 4,000 video game machines to operate in the 650
betting stations 364 days a year; and the commitment that the government issue a
license  which  guarantees  the  investment  of  the  new  operating  company.

     Segarra  and  Alvarez's refusal to listen to the claims made to attract the
multimillionaire  investment,  influenced  HDA's  determination  to  opt for the
reorganization  process  under  Chapter  11  of  the  Bankruptcy  Act.

     The  racing  industry  contributes  more than $30 million to the government
yearly.
                                      * * *

CONTACT:  LISETTE NUNEZ
          (787) 728-7011
          (787) 406-3606


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