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Argosy Gaming Company Provides Q2 Outlook

29 June 2000

ALTON, Ill., June 29 (Press Release) -- Argosy Gaming Company (NYSE: AGY - news) today provided an update on the ongoing negotiations pertaining to the 29% minority interest in Lawrenceburg, its outlook for earnings and other recent items.

Lawrenceburg 29% Stake Purchase Price

The Company announced that the initial sixty-day negotiating period for the 29% interest of Conseco Entertainment, LLC (``Conseco'') in the Lawrenceburg casino has passed without the partners reaching an agreement.

While the Company expects negotiations to continue, the partners will now proceed to determine the ``Appraisal Value'' under the terms of the partnership agreement. If the parties cannot agree upon a price before Appraisal Value is determined, the Appraisal Value will become the purchase price.

Appraisal Value is determined by Conseco and the non-selling partners who each appoint an appraiser who is a disinterested party in the contemplated transaction and who is familiar with the gaming business and gaming appraisals.

If the two appraisals are within 10% of one another, then the average of the two appraisals shall become the Appraisal Value. If the two appraisals are not within 10%, the two appraisers will appoint a third appraiser, and the average of all three appraisals shall be the Appraisal Value. Once the Appraisal Value of Conseco's interest is determined, each of the non-selling partners has sixty days to accept or reject a purchase at that price.

If the non-selling partners reject the Appraisal Value, Argosy, as the general partner, is required to solicit bids and sell all of the assets of the Lawrenceburg partnership within twelve months to the highest bidder.

Earnings Outlook

Operating Results -- The Company said it would report record earnings and EBITDA (earnings before interest, taxes, depreciation and amortization) for the second quarter ending June 30, 2000, although earnings will not reach the consensus analyst's estimate.

The Company expects net income from operations, before consideration of extraordinary and one-time items, to be approximately $0.37 to $0.40 per diluted share on a fully taxed basis, as compared to $0.27 per diluted share for the second quarter of 1999, when the Company benefited from net operating loss carry-forwards to offset the income tax effect on earnings. The consensus analyst's estimate for the quarter is $0.45 per diluted share.

James B. Perry, President and Chief Executive Officer, commenting on the outlook for the second quarter, said, ``The preliminary results of the second quarter indicate that the flow of incremental casino revenues into incremental cash flow has stabilized at approximately 33%.

"We continue to focus on the fundamental business practices which have led to our recent success such as database marketing, competitive slot product and customer service; and, coupled with favorable regulatory changes in 1999, believe these items will result in increased revenues and cash flows at each of our properties this quarter.''

Alton Landing Facility -- The Company said it will record a non-cash after-tax charge of approximately $4 million or $0.14 per diluted share related to the original Alton landing which was taken out of service last December upon completion of the new landing facility which included approximately 130 additional slot machines.

First Mortgage Note Redemption -- The company reiterated that it will record an extraordinary charge of approximately $1.2 million, after tax, related to the recent redemption of approximately $22.2 million of its 13 1/4% First Mortgage Notes which were not tendered as part of the Company's 1999 refinancing.

1992 and 1993 IRS Audit

The Company said the Internal Revenue Service has completed a combined audit for the 1992 and 1993 tax years of Argosy Gaming Company. As a part of the audit, it was determined that a predecessor entity, prior to the formation of the Company, was a valid S Corporation under provisions of the Internal Revenue Code. The Company had previously reported that if the S Corporation election was not upheld, it could be liable for up to $15 million in taxes. As a result of the audit, there are no additional taxes due by the Company.

Argosy is a leading multi-jurisdictional owner and operator of riverboat casinos and related entertainment and hotel facilities in the midwestern and southern United States. Argosy, through its subsidiaries and joint ventures, owns and operates the Alton Belle Casino in Alton, Illinois, serving the St. Louis metropolitan market; the Argosy Casino in Riverside, Missouri, serving the greater Kansas City metropolitan market; and the Argosy Casino-Baton Rouge in Louisiana. Argosy is also a majority partner and operator of the Belle of Sioux City in Iowa, and the Argosy Casino & Hotel in Lawrenceburg, Indiana, serving the Cincinnati and Dayton metropolitan markets.

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