Pinnacle Secures Additional Property in St. Louis

17 February 2005

LAS VEGAS – (PRESS RELEASE) -- Pinnacle Entertainment, Inc. (NYSE: PNK) announced today that it has entered into an agreement with a subsidiary of Isle of Capri Casinos by which Pinnacle will acquire property located along North First Street in downtown St. Louis. The property is directly adjacent to the company's proposed casino and luxury hotel in Laclede's Landing and to the 297-suite Embassy Suites Hotel, which Pinnacle has previously agreed to purchase. Both the Isle and Embassy Suites transactions are expected to close in the first quarter of 2005.

"For more than a year, Pinnacle Entertainment has been working closely with the City of St. Louis to invest a minimum of $258 million in an entertainment and hotel project central to the revitalization of Laclede's Landing and downtown St. Louis. This agreement is another important milestone in our effort to lead this renewal," said Daniel R. Lee, Chairman and CEO of Pinnacle Entertainment. "The addition of this key property will enable Pinnacle to design a master plan for the entire area."

With this agreement in place, Pinnacle now owns, has agreed to purchase, or has an option to lease all real estate in a large area north of the Gateway Arch. The Pinnacle redevelopment area is approximately 18-acres bounded by Third Street, Carr Street, Lenore K. Sullivan Drive and Dr. Martin Luther King Boulevard.

The Company also announced today its reaction to legal action filed by Columbia Sussex Corporation regarding the location of Pinnacle's downtown casino and seeking an injunction to block commencement of construction.

"In January 2005, after careful scrutiny, the Missouri Gaming Commission concluded that the location of the proposed casino site is suitable and complies with Missouri law. We stand by their decision in this matter," Lee said.

"Although Pinnacle now controls all of the land from Interstate 70 to the Mississippi River between Carr Street and Martin Luther King Boulevard, we continue our plans to build the casino in the same location as initially proposed and approved by the City and the Missouri Gaming Commission. This site, near the southwest corner of Pinnacle's property on North Second Street, is closest to the Convention Center and the Laclede's Landing tourism district. We believe the successful redevelopment of the downtown area must encourage synergies between the casino and the nearby convention and tourism infrastructure.

"Regrettably," Lee continued, "Columbia Sussex continues its attempts to obstruct this vital redevelopment and the creation of thousands of jobs for the St. Louis region. They are clearly trying to delay a potential competitor of the bankrupt President Casino on Laclede's Landing, which they may or may not purchase. Regardless of this legal action, Pinnacle Entertainment will continue to lead the renewal of downtown St. Louis. We remain firmly committed to the City and to our exciting project, and we are moving forward with all deliberate speed to ensure its timely completion."

Pinnacle has proposed a $208 million project on Laclede's Landing, including a 75,000-square-foot, 2,000 slot casino; a luxury hotel; retail space; and a large parking structure. As part of the agreement with the City, Pinnacle also intends to build (potentially with one or more development partners) an additional $50 million of residential housing, retail, or mixed- use developments in the City within five years of the opening of the casino and hotel, which is projected for early 2007.

In south St. Louis County, Pinnacle has proposed a $300 million gaming and mixed-use project in the community of Lemay, located approximately 10 miles south of downtown St. Louis. The proposed development will be situated on approximately 56 acres of land leased from the St. Louis County Port Authority and will include a 90,000-square-foot, 3,000-slot casino; a 100-guestroom hotel; and extensive retail and entertainment space. An additional 24 acres will be developed into a public park and will include community and recreational facilities to be constructed by the Company. Because the County project requires extensive remediation of the former industrial site as well as construction of a new road and flood control measures, the company estimates that construction will take approximately one year longer than will be required for the City project.