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Lakes Entertainment Signs Letter of Intent with Texas Tribe

MINNEAPOLIS, Minnesota -- (PRESS RELEASE) -- Lakes Entertainment, Inc. (Nasdaq:LACO) announced today that it has signed a Letter of Intent with the Kickapoo Traditional Tribe of Texas to negotiate an agreement with the Tribe to consult on the further development and operations of the Tribe's casino located in Eagle Pass, Texas. Subject to regulatory approval, the consulting agreement will be replaced by a management contract. The Tribe recently opened the expanded Lucky Eagle Casino in Eagle Pass, Texas, located approximately 140 miles southwest of San Antonio. The casino currently consists of approximately 1,000 Class II type gaming devices, ten Kickapoo 21 tables and seventeen poker tables along with two restaurant outlets and a multi-functional outlet that seats over 2,000 customers.

The Letter of Intent provides that the Tribe and Lakes will negotiate and enter into a consulting agreement and a management contract. The consulting agreement will be for a period of seven years or until approval by the National Indian Gaming Commission of a proposed seven year management contract, which will then replace the consulting agreement. If Lakes and the Tribe enter into the agreements, Lakes does not expect to receive any significant fees under these arrangements for at least twelve months.

Lyle Berman, Chairman and CEO of Lakes stated, "We are extremely pleased to be selected by the Kickapoo Traditional Tribe to help them further develop their casino in Eagle Pass. The location will provide for a tremendous casino resort destination site. We appreciate the help of Kevin Kean, who introduced our company to the Tribe."

Tim Cope, President of Lakes commented, "We are very excited to begin work on this new casino development opportunity. We look forward to working with Chairman Juan Garza, Jr. and members of the Tribal Council who are very supportive of this relationship with our Lakes' team. Specific terms of the consulting agreement and management contract will be disclosed as soon as definitive agreements between Lakes and the Tribe are signed."

Juan Garza, Jr. Chairman of the Traditional Council expressed his enthusiasm, "This will bring new and greater benefits to our Tribal members and the whole community outside of our Reservation."

Lakes Entertainment, Inc. currently has development and management agreements with three separate Tribes for one new casino operation in Michigan and two in California. Lakes also has agreements for the development of an additional casino on Indian-owned land in California through a joint venture with MRD Gaming, which is currently being disputed by the Tribe. Additionally, the Company owns approximately 64% of WPT Enterprises, Inc. (Nasdaq:WPTE), a separate publicly held media and entertainment company principally engaged in the development, production and marketing of gaming themed televised programming including the World Poker Tour television series, the licensing and sale of branded products and the sale of corporate sponsorships. Lakes Entertainment, Inc. common shares are traded on the Nasdaq National Market under the trading symbol "LACO".

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