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Ameristar Casinos to Acquire Mountain High Casino

2 June 2004

LAS VEGAS – (PRESS RELEASE) -- Ameristar Casinos, Inc. (Nasdaq: ASCA) announced today that it has signed an agreement with Windsor Woodmont Black Hawk Resort Corp. to acquire Mountain High Casino in Black Hawk, Colorado for approximately $115 million, plus the assumption of Windsor Woodmont's liability for the approximately $2.4 million principal amount of outstanding Black Hawk Business Improvement District Bonds.

Windsor Woodmont will also be entitled to receive contingent payments during the four-year period following the closing of the acquisition equal to 10% of the property's earnings before interest, taxes, depreciation and amortization (EBITDA) for each year in excess of $17.5 million prior to the opening of a hotel on the property, and 10% of EBITDA for each year in excess of $24 million following the opening of a hotel (with EBITDA calculated to exclude any charges attributable to the development and construction of the hotel).

Windsor Woodmont is currently operating as a debtor-in-possession in a pending Chapter 11 case before the United States Bankruptcy Court for the District of Colorado. Ameristar's acquisition of Mountain High Casino will form the basis of Windsor Woodmont's amended plan of reorganization. The Ad Hoc Committee of certain holders of Windsor Woodmont's first mortgage notes has agreed to support the amended plan of reorganization.

Closing of the acquisition is subject to the confirmation of the amended plan of reorganization by the Bankruptcy Court, the receipt of gaming regulatory approvals, the expiration of the waiting period under the Hart- Scott-Rodino Antitrust Improvements Act and other customary closing conditions. Subject to the satisfaction of these conditions, closing is expected to occur in the fourth quarter of 2004. Ameristar plans to finance the purchase out of available cash, through an increase in the borrowing capacity under its senior credit facilities, through the issuance of debt securities or a combination thereof.

Mountain High Casino is an upscale, integrated gaming and entertainment facility located in the center of the Black Hawk gaming district, approximately 40 miles west of Denver, Colorado. It is the largest casino in Colorado, with approximately 425,000 square feet, 57,000 of which is currently used for gaming. The property features approximately 1,000 slot machines and 24 table games (including poker), a steak and seafood restaurant, a buffet and food court, a 5,000 square-foot entertainment showroom that seats approximately 500 and a parking garage with space for approximately 800 vehicles, among other amenities.

Ameristar intends to make a number of significant capital improvements to the property, including the construction of a 300-room AAA Four Diamond- quality hotel and additional covered parking, reconfiguration and expansion of the gaming area, the addition and replacement of food and beverage outlets, enhancement of the entertainment showroom and the introduction of cashless slot technology and other gaming equipment upgrades. These projects, which are key to the rebranding of the property under the Ameristar flag, are anticipated to cost approximately $75 million and are expected to occur in stages during the three years following Ameristar's acquisition of the property.

"We are very excited about the opportunity to acquire Mountain High Casino," said Craig H. Neilsen, President and CEO of Ameristar. "Mountain High is a high-quality property with an attractive and distinctive design and an excellent location in one of the major gaming markets in the United States. We have carefully studied the facility's operations and are confident that the physical improvements that we plan to make, along with the implementation of our proven operating strategies, will enable us to realize an attractive return on our investment, consistent with those of our other market-leading facilities. The acquisition will also add to the geographic diversification of our portfolio and, given our strong financial position, will not impact our ability to continue our recently instituted cash dividend policy or to pursue other development opportunities."

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