Pinnacle Entertainment Buys Aztar for $2.1 Billion

Pinnacle Entertainment, Inc., the company that owns the "Boomtown Casino" brand, bought fellow casino company the Aztar Corporation today for $2.1 billion in cash.

The Aztar Corporation owns the Tropicana in both Atlantic City and Las Vegas, and Casino Aztars in Evansville, Indiana and Caruthersville, Missouri.

The deal, upon which both boards agreed this morning, now gives Pinnacle Entertainment casinos in Nevada, New Jersey, Louisiana, Missouri, and Indiana.

In 2006, Pinnacle Entertainment plans on opening a casino adjacent to the Four Seasons Hotel on the island of Exuma in the Bahamas and Aztar's new hotel at its Evansville property.

In 2007, it plans to expand and renovate Belterra, Pinnacle's property in Indiana, and L'Auberge du Lac, its resort in Lake Charles, Louisiana. It also is working to receive approval to open a casino in St. Louis. The company also plans to build a hotel at Pinnacle's Boomtown New Orleans casino.

By the time the near future is over, Pinnacle Entertainment will own a dozen casinos in the United States, more than 8,800 hotel rooms and approximately 22,000 slot machines system-wide.

In 2008, Pinnacle plans a major project that would utilize the entire 34-acre site of the Tropicana in Las Vegas. It is estimated that the design phase of this project will require at least two years. The existing Tropicana will continue to operate as it is until further notice.

The transaction is subject to approval by Aztar shareholders and the satisfaction of customary closing conditions, including the receipt of necessary regulatory and governmental approvals. The transaction is not subject to financing and is expected to close by the end of the year.

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