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Hollywood Casino Receives Insurance Payment

SHREVEPORT, Lousiana -- (Press Release) -- HCS I, Inc., the managing general partner of Hollywood Casino Shreveport ('HCS'), announced today that HCS has received a $4 million payment, which settles the pending appeal of the judgment entered on June 16, 2003 against the insurance company which was providing business interruption coverage in 2000 at the time a tornado struck the construction site for the property. In addition to the payment received by HCS, the insurance company paid $750,000 to the outside legal counsel of HCS in full satisfaction of its attorneys'fees relating to this claim.

As previously disclosed in HCS'Securities and Exchange Commission filings, the construction site for HCS suffered tornado damage on April 23, 2000 that contributed to the delay of the opening of the facility and HCS'insurance carrier later reimbursed HCS for approximately $1.5 million related to the damage claim. HCS also sought to recover lost profits and related claims pursuant to its business interruption insurance and filed a lawsuit to pursue the reimbursement. On June 16, 2003 a judgment was entered in the U.S. District Court for the Western District of Louisiana in favor of HCS.

HCS I is a wholly owned indirect subsidiary of Penn National Gaming, Inc. (PENN: Nasdaq). Hollywood Casino Shreveport is a riverboat casino/hotel complex located on the Red River in Shreveport, Louisiana.

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