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Ameristar Reconfigures Philadelphia Plan

LAS VEGAS -– (PRESS RELEASE) -- Ameristar Casinos, Inc. (Nasdaq: ASCA) today announced that it has renewed its option to purchase 13 acres of prime Delaware waterfront in the Fishtown section of Philadelphia, and has acquired the right to purchase 14 acres southwest of the site as well.

At the same time, the Las Vegas-based company announced that it has relinquished its option on a 33-acre parcel north of the reconfigured site owned by Beach Street Corporation, whose owners include Sen. Michael Stack III and members of the Stack family. The reconfigured site effectively shifts the proposed gaming location less than 400 yards to the south, while maintaining the easy access to Interstate 95 that distinguishes the site from other proposed gaming locations in the City.

"We continue to believe that the northern Delaware waterfront represents a terrific location for gaming in Philadelphia," said Gordon R. Kanofsky, Executive Vice President of Ameristar, in announcing the new developments. "We anticipate a total investment of up to $500 million to build a world-class gaming and entertainment complex on par with the market-leading properties our company is well-known for in the gaming industry.

"To realize our vision, to generate the maximum economic benefits to the city, and to deliver a project we believe Philadelphians deserve, we need a large site in a prime location, with easy access to both I-95 and Center City with minimal impact on residential neighborhoods," Kanofsky said. "We believe a northern Delaware River location meets these objectives, and we remain eager to move forward in our effort to win a gaming license in Philadelphia."

Ameristar acknowledged that it had negotiated the reconfiguration of the site specifically to eliminate the Beach Street parcel from the transaction after concluding that its best interests lie in pursuing a gaming license for a site that does not include the Beach Street parcel. Ameristar originally entered into the option on the Beach Street parcel in August 2004. At that time, Ameristar was unaware of the potential for conflict of interest concerns as a result of Senator Michael Stack's alleged failure to adequately disclose his 4% interest in Beach Street Corporation in accordance with Senate rules.

"This decision is consistent with Ameristar's corporate culture and our long track record of strong regulatory compliance in some of the most stringent gaming jurisdictions in the United States," Kanofsky said.

Ameristar is currently conducting site due diligence on the recently optioned parcels as it evaluates the development potential of its reconfigured site along the northern Delaware River. During this evaluation period, Ameristar continues to explore other options for the development of a first-class casino-entertainment facility in Philadelphia.

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