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Black Hawk Gaming Reports Slight Increases for Q3 Results

Third Quarter Results:

Net income for the third quarter, after privatization costs and other non-recurring costs totaling $151,000, increased to $1,546,000 compared to net income of $1,502,000 for the third quarter of last year. Earnings per diluted share for the third quarter, after privatization costs and other non-recurring costs was $.36 per share, equal to the comparable quarter last year. Third quarter net revenue increased to $26 million from $20 million for the same quarter last year.

Nine Month Results:

Net income for the nine-month period, after privatization costs and other non-recurring costs totaling $1,266,000, decreased to $3 million compared to $4.8 million for the nine-month period last year. Earnings per diluted share for the nine-month period, after privatization costs and other non-recurring costs, decreased to $.70 for the first nine months of this year compared to $1.17 per share for the same period last year. Nine-month net revenue increased to $73.6 million from $60.7 million for the corresponding period last year.

Status of Buyout Offer

As previously announced, on April 27, 2001, Black Hawk executed a merger agreement with Gameco, Inc., an entity controlled by Jeffrey P. Jacobs, Chairman of the Board and Chief Executive Officer of Black Hawk. The merger agreement calls for Gameco to pay $12.00 per share, in cash, for each share of common stock of Black Hawk not currently owned by Mr. Jacobs or his affiliates and Black Hawk will become a wholly-owned subsidiary of Gameco. Consummation of the transaction is subject to various conditions, including approval by Black Hawk's stockholders and obtaining of gaming licensing approvals in Colorado and Nevada.

Also as previously announced, on September 21, 2001, Black Hawk was advised that Gameco and its financial advisors were evaluating carefully the impact of the September 11, 2001 terrorist attacks in New York City and Washington, D.C., on the capital markets and Gameco's proposed high yield debt offering. Gameco further advised that it was considering alternative financing arrangements.

Today, the Special Committee recommended and the full Board of Directors of Black Hawk Gaming granted to Gameco, an extension until April 1, 2002 to arrange for financing and close the transaction. Gameco informed the Board that it will provide the Committee and the Board with a ``highly confident'' letter from its financial advisors, stating that they are confident they can arrange financing for Gameco to complete the acquisition of Black Hawk in the first quarter of 2002. The Special Committee and the full Board of Directors of Black Hawk Gaming believe that it is in the best interest of the shareholders to provide Gameco the additional time. If the transaction fails to close by April 1, 2002, Black Hawk may terminate the merger agreement and receive liquidated damages of $2 million.

Black Hawk intends to hold a special meeting of shareholders to approve the merger agreement with Gameco in January, 2002. It is expected that Colorado and Nevada gaming approvals will be obtained in January or February, 2002.

Information Concerning Participants:

Black Hawk and its directors may be deemed to be participants in the solicitation of proxies from Black Hawk stockholders to approve the merger. Some of the directors of Black Hawk have an interest in the merger that may differ from or may be in addition to the interests of Black Hawk stockholders generally. Those interests, which are described in greater detail in the proxy statement with respect to the merger, include the interest of Mr. Jacobs in the equity of Gameco and potential employment relationships of other directors.

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