Pinnacle Entertainment Reports Strong Second Quarter 2005 Results

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. October 14, 2008

LAS VEGAS, NV, August 3, 2005. Pinnacle Entertainment, Inc. today reported strong financial results for the second quarter and six months ended June 30, 2005, which reflect the opening of L'Auberge du Lac, the Company's $365 million casino resort located in Lake Charles, LA.

"We are very pleased by the smooth opening of L'Auberge du Lac," said Daniel R. Lee, Chairman and CEO of Pinnacle Entertainment, Inc. "L'Auberge has exceeded our expectations for these first several weeks for both customer acceptance and profitability. As at any new resort, marketing and other costs are still high and we are still building our customer and players' club lists. We incurred a great deal of overtime pay in meeting the initial customer demand and have been hiring additional people in certain job categories since opening. The L'Auberge team is learning every day how to operate the property even better and provide excellent customer service to large numbers of people. As the team becomes more efficient and more people in the region recognize the quality of the L'Auberge experience, we expect the property to mature into one of the gaming industry's most successful regional properties.

"Meanwhile, the remainder of our company, most notably Belterra and Boomtown New Orleans, also had a strong quarter."

For the second quarter, revenues rose 25.1% to $175.0 million from $139.9 million a year earlier. Adjusted EBITDA(1) increased 32.8% to $36.1 million from $27.1 million for the prior-year period. The Company's adjusted EBITDA(1) margin improved to 20.6% in the quarter from 19.4% in the year- earlier quarter. Excluding L'Auberge du Lac, the Company's revenues rose 4.1% and adjusted EBITDA increased 3.9%. EBITDA margin excluding L'Auberge du Lac was 19.4% in the recent quarter.

Adjusted net income(1) for the quarter was $9.9 million, or $0.23 per share, compared to adjusted net income of $1.4 million, or $0.04 per share, for the second quarter of 2004. On a GAAP ('Generally Accepted Accounting Principles') basis, the Company reported a net loss of $4.2 million, or $0.10 per share, due to preopening costs, which consisted principally of the hiring, training and opening-related costs at L'Auberge du Lac. This compared to the 2004 quarter net income of $15.7 million, or $0.43 per diluted share, which included a large land-sale gain.

Six-Month Results

Revenues for the six months ended June 30, 2005 increased 14.8% to $314.8 million from $274.2 million. Adjusted EBITDA increased 23.8% to $63.1 million from $51.0 million in the prior-year six-month period. The adjusted EBITDA margin increased to 20.0% in the period, compared to 18.6% for the first half of 2004. Excluding L'Auberge du Lac, revenues increased 4.1%, adjusted EBITDA increased 8.4% and the adjusted EBITDA margin reached 19.4%.

Adjusted net income for the first half of 2005 was $13.2 million, or $0.31 per diluted share, compared to adjusted net income of $1.1 million, or $0.03 per diluted share, for the six months ended June 30, 2004. On a GAAP basis, the Company reported a net loss of $6.4 million, or $0.16 per share, compared with net income of $17.2 million, or $0.49 per share, for the 2004 six-month period. The recent period's GAAP income included large preopening expenses, principally related to L'Auberge du Lac, while the year-ago period included two large land-sale gains.

"In addition to our opening at L'Auberge du Lac during the second quarter, we recently opened our replacement casino facility in Neuquen, Argentina. We believe the new Casino Magic - Neuquen will be the center of entertainment in the region," Mr. Lee continued. "We also completed our refurbishment in Biloxi, and made progress on our plans for two casinos in St. Louis."

Recent highlights include: * Following its initial public opening on May 26, L'Auberge du Lac hosted a grand opening customer party on July 16, featuring both comedian Jay Leno and entertainer Lionel Richie as surprise guests. Invited guests from Houston, New Orleans and surrounding areas enjoyed the lush tropical pool area, championship golf course, full-service spa and specialty restaurants, as well as the very comfortable, 24-hour casino floor. * On July 27, the Company opened its replacement facility in Neuquen, Argentina. The new facility includes a larger casino, restaurant, and an entertainment venue on land owned by the Company approximately one mile from the former leased facility. The facility was completed approximately on its budget of some US$15 million. * In July, the Company submitted various plans and specifications for the St. Louis City project as stipulated by the development agreement. The Company anticipates selecting the project general contractor within 30 days and beginning construction in the fourth quarter. The Company anticipates completing the purchase of the 297-suite Embassy Suites Hotel in the third quarter as well as exercising its option to lease 4.3 acres of land in the Laclede's Landing area. When combined with land the Company already owns or has under option to lease, the Company will control approximately 18 acres of contiguous land for development of this St. Louis City project. * On May 25, the Company obtained several key approvals from the Missouri Gaming Commission regarding its Lemay casino project in south St. Louis County. Among other things, the Commission unanimously approved the location of the casino portion of the Lemay project and the Company's request for permanent docking at the site. The Company is preparing its design plans for the project, as well as pursuing both the required environmental review and the road access requirements. The Company expects to begin remediation of the County site in August. Property Highlights Belterra Casino Resort.