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Argosy Gaming Will Buy Conseco's Share of Indiana Riverboat Casino

19 December 2000

ALTON, Illinois – (Press Release) -- Argosy Gaming Company (NYSE: AGY) today announced that it has reached an agreement with Conseco Entertainment, LLC. (``Conseco''), an indirect subsidiary of Conseco, Inc., to acquire their 29% limited partnership interest in the Argosy Casino and Hotel in Lawrenceburg, Indiana. In connection with the agreement, the parties agreed to settle all pending litigation between Argosy and Conseco.

Upon closing of the transaction, Argosy will own 86.5 % of the Lawrenceburg casino, its flagship property, and will receive an increase in their management fee from 7.5% to 12.5% of EBITDA (earnings before interest, taxes, depreciation and amortization).

Under the terms of the agreement, the Company agreed to pay $260 million for Conseco's 29% limited partnership interest, including the repayment of Conseco's preferred equity interest and outstanding partner loans. Argosy anticipates closing the transaction in the first quarter of 2001.

James B. Perry, President and Chief Executive Officer, commenting on the transaction said, ``We are extremely pleased to reach agreement with our partner and for the opportunity to increase to 86.5% our ownership position in the Lawrenceburg casino. This transaction is the result of several months of negotiations between the parties, and we believe that the purchase of this interest represents another step in our efforts to maximize value for our shareholders.''

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