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Lakes Gaming Inc. Adopts Shareholder Rights Plan

The Shareholder Rights Plan, which is similar to plans adopted by many other U.S. companies, strengthens the ability of the Board to assure that Lakes Gaming's shareholders receive fair and equal treatment, and to protect the interest of the Company's shareholders in the event of any unsolicited offer to acquire control of the Company. The Plan does not prevent a legitimate takeover attempt, but rather encourages anyone seeking to acquire the Company to negotiate with its Board of Directors the manner and terms of any proposed acquisition.

The Rights will be exercisable if a person or group acquires 15% or more of the Company's common stock or announces or commences a tender offer for 15% or more of such shares. When a person or group acquires 15%, each exercisable Right will entitle its holder (other than the acquiring person or group) to purchase, at the Right's then-current exercise price, a number of the Company's common shares having a market value equal to twice such price. In addition, if the Company is acquired in a merger or other business combination transaction after a person has acquired 15% or more of the Company's outstanding common stock, each Right will enable its holders to purchase, at the Right's then-current exercise price, a number of the acquiring company's common shares having a market value to twice such price.

Prior to the acquisition by a person or group of 15% or more of the Company's common stock, the Rights are redeemable for one cent per Right at the option of the Company's Board of Directors.

The Rights will expire on May 12, 2010 unless their term is otherwise extended by the Board of Directors. The Rights distribution is not taxable to shareholders.

Lakes Gaming, Inc. is a publicly held casino management company that was formed through a distribution to shareholders of Grand Casinos, Inc. effected in December 1998. The company currently manages the largest casino resort in Louisiana and has entered into development and management agreement with three separate tribes for three new casino operations. Lakes Gaming, Inc. common shares are traded on the Nasdaq National Market under the trading symbol "LACO".

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by the Company) contains statements that are forward-looking, such as statements relating to plan for future expansion and other business development activities as well as other capital spending, financing sources and the effects of regulation (including gaming and tax regulation) and competition. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of the Company. These risks and uncertainties include, but are not limited to, those relating to development and construction activities, dependence on existing management, domestic or global economic conditions, activities of competitors and the presence of new or additional competition, fluctuations and changes in customer preferences and attitudes, changes in federal or state tax laws of the administration of such laws and changes in gaming laws or regulations (including the legalization of gaming in certain jurisdictions). For more information, review the Company's filings with the Securities and Exchange Commission.

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