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Black Hawk Stock Soars Amid Buyout Bid

1 May 2001

COLORADO -- As reported by the Denver Post: "Black Hawk Gaming & Development Co. Inc. is asking shareholders to approve a $30 million acquisition by the company's chairman.

"A committee organized by the publicly-held company, which owns the Gilpin Hotel Casino in Black Hawk, the Gold Dust West Casino in Reno, Nev., and 75 percent of The Lodge Casino in Black Hawk, has recommended that the company sell its outstanding stock for $12 a share to the company's president and chief executive officer, Jeffrey Jacobs.

"The announcement sent the company's stock soaring Monday to its highest point in two years. Black Hawk Gaming, which trades on the Nasdaq stock table as BHWK, closed at $10.65 a share Monday, the highest it has been since late 1998.

"The $12-a-share selling price is $1 more than the initial offer by Jacobs, who plans to take the company private through his company, Gameco Inc.

"…Black Hawk's stock languished at about $7 a share for most of 1999 and 2000, despite the firm logging a $6 million profit in 2000. When Jacobs' offer was first announced, the stock climbed almost 49 percent to $9.75."

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