DEBBIE REYNOLDS HOTEL & CASINO, INC. ANNOUNCES THAT CALSTAR CORPORATION HAS
ELECTED TO CANCEL ITS OFFER TO PURCHASE THE CORPORATION

For Immediate Release

     Las Vegas,  Nevada,  June 11, 1998 - Debbie Reynolds Hotel & Casino,  Inc.,
("DRHC"),  (OTC:  DEBIQ) a Nevada  Corporation,  announces  today  that  Calstar
Corporation,  ("Calstar"), has notified DRHC of its election not to proceed with
the offer to purchase 92.5% of the Company for $15,500,000.

     Pursuant to the Alternative  Transaction  section of DRHC's Revised Plan of
Reorganization, Central Florida Investments Inc., ("CFI"), an affiliate of David
A.  Siegel,  ("Siegel"),  Owner and  President of Westgate  Resorts,  one of the
largest  timeshare  developers  in the world,  and  Calstar,  entered  into open
bidding for the Company.  CFI's bid of $15,600,000 to purchase 92.5% of DRHC was
the highest and best offer. The remaining 7.5% ownership of DRHC was to be split
between the unsecured creditors and the current  shareholders with the unsecured
creditors  receiving  5% and  the  current  shareholders  retaining  2.5% of the
Company.

     The offer was solely contingent upon CFI's  satisfactory  completion of its
due  diligence.  CFI was allowed 30 days to complete  its due  diligence  and an
additional 30 days to close the transaction. On Friday May 8, 1998, CFI notified
DRHC of its election not to proceed with the transaction.

     Calstar's  offer to purchase  92.5% of DRHC for  $15,500,000  was awarded a
back-up offer position by the  Bankruptcy  Court. . The remaining 7.5% ownership
of DRHC  was to be  split  between  the  unsecured  creditors  and  the  current
shareholders  with  the  unsecured   creditors  receiving  5%  and  the  current
shareholders retaining 2.5% of the Company.

     The back-up  offer  position  allowed  Calstar  the right to purchase  DRHC
pending the  completion  of its due  diligence  process.  The Calstar  offer was
solely contingent upon Calstar's  satisfactory  completion of its due diligence.
Calstar was allowed 30 days to complete its due  diligence  and an additional 30
days to close the  transaction.  The  transaction  was  scheduled to close on or
before  July 7,  1998,  however,  there  could be no  assurance,  until  Calstar
completed its due diligence, that the transaction would close.

     On Thursday  June 11, 1998,  Calstar  notified  DRHC of its election not to
proceed with the transaction.

     On May 10, 1998 the  Hollywood  Motion  Picture &  Television  Museum,  the
non-profit  organization which owns the Hollywood Memorabilia  collection on the
property, elected to terminate its relationship with DRHC and removed a majority
of its  collection  from the  property.  The Hollywood  museum  operation at the
property has been closed.

     The Company is currently  exploring  all of its options,  however,  at this
time any  value of  unsecured  creditors  claims  and  shareholder's  equity  is
unknown.

     On July 3,  1997 the  Company  filed for  relief  under  Chapter  11 of the
Bankruptcy  Code,  due to the  inability  of the Company to generate  sufficient
funds to cover,  on a timely  basis all of its debts.  The  Company  was seeking
reorganization  of its debts.  Also  filing  were  subsidiary  companies  Debbie
Reynolds  Management  Company and Debbie Reynolds  Resorts,  Inc. In addition to
filing personal  bankruptcy  under Chapter 11, Miss Debbie Reynolds  resigned as
Chairman  of the  Board,  Director  and an Officer  of Debbie  Reynolds  Hotel &
Casino,  Inc., Debbie Reynolds  Management  Company and Debbie Reynolds Resorts,
Inc.

For more information, please call Todd Fisher, CEO, (702) 734-0711.