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Argosy Gaming Company to Issue $150 Million of Its Senior Subordinated Notes

2 February 2001

ALTON, Illinois –(Press Release) -- Feb. 1, 2001 -- Argosy Gaming Company (NYSE: AGY) announced today that it has entered into an agreement to privately place $150 million of Senior Subordinated Notes. These notes would be an additional issue of the Company's 10-3/4% Senior Subordinated Notes due 2009, of which $200 million currently are outstanding.

The Senior Subordinated Notes were priced at 106% of principal amount, resulting in an effective yield of 9.46%. The transaction size was increased from the $100 million originally sought by the Company.

The Senior Subordinated Notes were initially placed with Morgan Stanley Dean Witter, Banc of America Securities LLC and Wells Fargo Brokerage Services, LLC for resale to qualified institutional buyers.

Proceeds from the Senior Subordinated Notes offering, together with borrowings under the Company's senior credit facility and cash on hand, will be used to finance the Company's purchases of the minority interests in the Company's Lawrenceburg, Indiana casino. The offering is expected to close on February 8, 2001.

The Senior Subordinated Notes will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933. It is anticipated that the Company subsequently will file a registration statement under the Securities Act of 1933 to effect an exchange offer of registered Senior Subordinated Notes.

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