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Pinnacle L'Auberge du Lac Plans Grow

LAS VEGAS – (PRESS RELEASE) -- Pinnacle Entertainment, Inc. (NYSE: PNK) announced today that its Board of Directors has approved an increase in the scope and budget of L'Auberge du Lac, the Company's casino resort currently under construction in Lake Charles, Louisiana. Among other items, the Company has increased the number of guestrooms to 746 from approximately 700. Overall, the budget was increased to $365 million from $325 million to reflect these scope changes.

"The addition of more hotel rooms, suites and other amenities will further strengthen our position in the Lake Charles gaming market," said Daniel R. Lee, Chairman and CEO of Pinnacle Entertainment. "This increase highlights our confidence in the success of L'Auberge du Lac."

To date, the Company has incurred approximately $100 million of construction and other capitalized costs. Most of the remaining costs are included in the bonded, fixed-price construction agreements that Pinnacle has with its contractors. The new budget also includes approximately $17 million of contingency for unforeseen items, including approximately $7 million that is controlled by the Company's general contractor. Funding for the remaining construction costs will be through the Company's cash and cash equivalents (which were $334.5 million as of March 31, 2004), available credit facilities (approximately $143 million as of March 31, 2004), and ongoing cash flows from operations.

Despite year-to-date rainfall tracking significantly ahead of normal levels for the Lake Charles area, L'Auberge remains on-schedule for an opening in Spring 2005. Construction recently began on the 14th floor of the hotel, with "topping off" of the 26-story tower expected in October.

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