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Pinnacle Entertainment to Purchase St. Louis Hotel

LAS VEGAS – (PRESS RELEASE) -- Pinnacle Entertainment, Inc. (NYSE: PNK) announced today that it has entered into an agreement with FelCor Lodging Limited Partnership to purchase the Embassy Suites St.Louis-Downtown. The purchase price is the greater of either $38 million or twelve times trailing-twelve-month EBITDA. Located on Laclede's Landing, the 297-suite hotel will adjoin the proposed casino and luxury hotel that Pinnacle plans to build in downtown St. Louis. The transaction is subject to various approvals and is expected to close in the first quarter of 2005.

"We are excited about incorporating the Embassy Suites hotel into our development plans for downtown St. Louis. In addition to directly attaching the Embassy Suites to our proposed casino and luxury hotel, we will also integrate the Embassy Suites into the system of walkways and buildings connecting to the America's Center convention center," said Daniel R. Lee, Chairman and CEO of Pinnacle Entertainment. "This agreement further strengthens our commitment to the city of St. Louis and our redevelopment goals for the area surrounding Laclede's Landing."

Pinnacle Entertainment owns and operates casinos in Nevada, Mississippi, Louisiana, Indiana and Argentina, and receives lease income from two card club casinos, both in the Los Angeles metropolitan area. The Company is currently building a major casino resort in Lake Charles, Louisiana and has been selected for two casino development projects in the St. Louis, Missouri area. Each of these development projects is dependent upon final approval by the Louisiana Gaming Control Board and the Missouri Gaming Commission, respectively.

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