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Station Casinos Sells Southwest Gaming to Blake L. Sartini

15 June 2001

LAS VEGAS,Nevada --(Press Release) -- June 15, 2001-- Station Casinos, Inc. (NYSE: STN) today announced the sale of Southwest Gaming Services, Inc., its wholly-owned subsidiary, to Blake L. Sartini who, in connection with this transaction, will step down as executive vice-president and chief operating officer of the Company. Sartini will continue as a member of the board of directors and as a substantial shareholder.

"The timing is right for me to accept a new challenge and, as a co-founder of Southwest Gaming, I have always had a special interest in the slot route business. I am also leaving Station Casinos with a great management team in place and in a very solid position both operationally and financially," Sartini said.

Sartini has had an 18-year gaming career with Station Casinos, beginning as a floor man at Palace Station Hotel & Casino. Since 1985, he has held various management positions with the Company including vice-president of gaming operations from 1990 to 1993. In 1993, when Station Casinos became a public company, Sartini was named president of Nevada operations, and in 1997, he was named chief operating officer.

During his tenure, the Company expanded its franchise in Las Vegas from a single property with approximately $150 million in annual revenues, to seven major hotel casinos generating approximately $850 million in annual revenues while its team member base has grown from under 2,000 to nearly 12,000.

"Blake has done a great job of guiding our operations through a period of incredible growth," said Frank Fertitta III, chairman of Station Casinos. "Blake's record speaks for itself. Under his leadership, our properties realized 12 straight quarters of record cash flow. Although Blake is leaving his role in operations, I look forward to continuing to work with him as a director and having his input on the strategic direction of the Company," Fertitta stated.

Station Casinos and Sartini have entered into an agreement that provides for a tax-free, stock-for-stock exchange whereby the Company will transfer its stock in Southwest Gaming to Sartini in exchange for Station Casinos' common stock valued at $14 million that he holds.

The exact number of shares to be exchanged by Sartini will be determined by Station's stock price at a later date but will not be less than 814,077 shares or greater than 994,601 shares. Also as part of the transaction, both parties have entered into covenants not to compete. The transaction is expected to close prior to the end of the year, pending Nevada gaming regulatory approval.

Southwest Gaming is the fourth largest slot route in Nevada, providing slot route management services to approximately 80 accounts and 900 machines. The route's primary customers are 15-machine tavern locations with restricted gaming licenses in the Las Vegas metropolitan area. For the trailing twelve months ending March 31, 2001, Southwest Gaming represented less than one percent of the Company's consolidated EBITDA.

Station Casinos, Inc. owns and operates Palace Station Hotel & Casino, Boulder Station Hotel & Casino, Santa Fe Station Hotel & Casino and the Wild Wild West Gambling Hall & Hotel in Las Vegas, Nevada, the Texas Station Gambling Hall & Hotel, and the Fiesta Casino Hotel in North Las Vegas, Nevada, and Sunset Station Hotel & Casino, and The Reserve Hotel & Casino in Henderson, Nevada. The Company also owns a 50 percent interest in Barley's Casino & Brewing Company, as well as slot machine route management services in the Las Vegas metropolitan area.

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