Mohegan Tribal Gaming Authority Announces Cost Reductions That Do Not Include Layoffs

UNCASVILLE, Conn.--(Business Wire)--
The Mohegan Tribal Gaming Authority ("MTGA" or the "Authority") announced today
a series of cost reduction initiatives to be implemented at its flagship
property, Mohegan Sun, in Uncasville, Connecticut, as a result of the continuing
economic slowdown.

In a continued effort to maintain its record of no employee layoffs, something
that has been accomplished due to long-standing financial success since opening
in 1996, the MTGA Management Board is implementing alternative cost saving
initiatives that will better align the Authority`s cost structure with the
current economic environment, while ensuring minimal impact on the guest
experience.

Effective February 1, 2009, all Mohegan Sun employees, including senior
management, and its Connecticut affiliates, will have salary rollbacks of 10
percent for Vice Presidents and above, 7.5 percent for middle management and 4
percent for all line and hourly employees. Other actions include suspension of
all annual and merit-based compensation increases, as well as employer-matched
401K contributions.

The Authority is also implementing a number of other initiatives to reduce
operating expenses, including marketing efficiencies, reducing hours of
operations in some outlets, and working with all business partners and service
providers to increase cost-effectiveness.

"These are difficult times for the entire Mohegan family," said Bruce "Two Dogs"
Bozsum. "Sacrifices are being made by the employees of Mohegan Sun, our Tribal
Government, and by the members of our Tribe. I am confident we will weather this
as we always have, together, and be stronger for it."

"Due to unprecedented market conditions, the Authority has been forced to make a
number of difficult, but necessary, decisions to reduce our operating costs,"
said Mitchell Etess, President and Chief Executive Officer of Mohegan Sun.
"However, we are determined to remain the leader in our industry without
compromising our core values and clear competitive advantages."

Mr. Etess added, "In addition to respect for our employees, we also have a
responsibility to our banking partners, bondholders and stakeholders who
continually support our vision. We are confident that we are taking the
appropriate measures to improve our financial results and grow our existing
market share advantage over competitors."

About the Authority

The Authority is an instrumentality of the Mohegan Tribe of Indians of
Connecticut (the "Tribe"), a federally recognized Indian tribe with an
approximately 507-acre reservation situated in southeastern Connecticut,
adjacent to Uncasville, Connecticut. The Authority has been granted the
exclusive power to conduct and regulate gaming activities on the existing
reservation of the Tribe, including the operation of Mohegan Sun, a gaming and
entertainment complex that is situated on a 185-acre site on the Tribe`s
reservation. Through its subsidiary, Downs Racing, L.P., the Authority also owns
and operates Mohegan Sun at Pocono Downs, a gaming and entertainment facility
offering slot machines and harness racing in Plains Township, Pennsylvania and
several off-track wagering facilities located elsewhere in Pennsylvania.

The Tribe`s gaming operation at Mohegan Sun is one of only two legally
authorized gaming operations in New England offering traditional slot machines
and table games. Mohegan Sun currently operates in an approximately 3.1 million
square-foot facility, which includes the Casino of the Earth, Casino of the Sky,
Casino of the Wind, The Shops at Mohegan Sun, a 10,000-seat Mohegan Sun Arena, a
350-seat Cabaret Theatre, 100,000 square feet of meeting and convention space
and the approximately 1,200-room luxury Sky Hotel Tower. The Casino of the Wind
opened on August 29, 2008, with approximately 65,000 square feet of additional
gaming space and new dining and retail amenities. Mohegan Sun at Pocono Downs
opened Project Sunrise on July 17, 2008, a gaming and entertainment facility
adjacent to the Phase I gaming facility. The combined facility now includes
approximately 2,500 slot machines, several dining options, including a 300-seat
buffet and a quick-serve dining area, six retail outlets, three bars/lounges,
additional parking and bus amenities. More information about the Authority and
its properties can be obtained by visiting www.mtga.com.

Special Note Regarding Forward-Looking Statements

Some information included in this press release contains forward-looking
statements. Such statements include information relating to business development
activities, as well as capital spending, financing sources and the effects of
regulation (including gaming and tax regulation) and increased competition.
These statements can sometimes be identified by the use of forward-looking words
such as "anticipate," "expect," and variations of such words and similar
expressions. Such forward-looking information involves important risks and
uncertainties that could significantly affect anticipated results in the future
and, accordingly, such results may differ materially from those expressed in any
forward-looking statements made by or on behalf of the Authority. Additional
information concerning potential factors that could affect the Authority`s
financial results is included in its Annual Report on Form 10-K for the fiscal
year ended September 30, 2008, as well as in its other reports and filings with
the SEC. The forward-looking statements included in this press release are made
only as of the date of this release. The Authority does not undertake any
obligation to update or supplement any forward-looking statements to reflect
subsequent events or circumstances. The Authority cannot assure you that
projected results or events will be achieved or will occur.

Mohegan Sun
Cathy Soper, 860-862-7841
csoper@mohegansun.com

Copyright Business Wire 2009