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Ameristar Casinos Amends Senior Credit Facilities

17 June 2002

LAS VEGAS – (Press Release) -- Ameristar Casinos, Inc. (Nasdaq: ASCA) today announced that it has amended the credit agreement governing its $374.5 million senior credit facilities to significantly reduce its borrowing costs and to improve its flexibility through the relaxation of a number of covenants included in the agreement.

The primary elements of the amendment include:

-a reduction in the applicable interest rate margin on all loans;

-the consolidation of the term loan C into the term loan B;

-a further reduction in the applicable interest rate margin for the term loan B upon an improvement in the Company's credit rating, or if the Company's leverage ratio falls below 3.50:1;

-increased flexibility for capital expenditures generally, including an increase in the basket applicable to the new St. Charles facility to accommodate the expanded scope of that project;

-the extension and expansion of the "greenshoe" for additional credit commitments; and

-significant increases in various covenant allowances.

"This amendment signifies the market's recognition of our strong performance and the substantial steps we have taken to improve our liquidity and balance sheet," said Thomas M. Steinbauer, the Company's Senior Vice President and Chief Financial Officer. "We have successfully executed on our commitment to reduce the Company's debt levels, even as we complete substantial capital improvement projects that will help grow the Company's earnings in future periods."

The Company paid an amendment fee of 25 basis points, or $0.9 million, in connection with the amendment. Based on the expected net savings of approximately $2 million annually as a result of the amendment, the Company should recoup the amendment fee in approximately six months.

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