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Station Casinos Accepting Backup Offers for Its Missouri Casinos

The seven Station representatives included Chairman/Chief Executive Officer Frank J.Fertitta III; Executive Vice President/Chief Financial Officer Glenn C.Christenson; Executive Vice President/General Counsel Scott M. Nielson; Vice President of Regulatory Compliance John Pasqualotto; Vice President/Associate General Counsel Richard Haskins; Vice President/Finance William Warner; and Executive Secretary Marnie Hinrichs.

"We have determined at this point that the interests of the Company, its employees, and public shareholders are best served by showing that there is nothing to hide and by avoiding more litigation with the MGC. We are trying to move this Lazaroff investigation towards some fair resolution for our company which meets all legitimate regulatory concerns," said Charles W. German, a Station attorney with Rouse Hendricks German May of Kansas City.

Yesterday's hearing was a continuation of one held August 30 in conjunction with an ongoing investigation of Michael Lazaroff, an attorney formerly with the law firm of Thompson Coburn, which represented Station Casinos in Missouri.

Each of the individuals who testified yesterday had previously declined the MGC's request to testify at the August hearing. In response to their failure to testify, the MGC issued preliminary orders to revoke the licenses held by the Company's two Missouri subsidiaries and four individual licensees.

On October 5, the Company filed motions to dismiss each of the preliminary orders, and that litigation is pending. Yesterday's testimony followed assurances by each of the individual commissioners that they have not prejudged the issues, despite the actions of the staff in sending letters to the federal court on behalf of Lazaroff in connection with his sentencing.

In June, Lazaroff pled guilty to three felony counts in federal court involving almost $1 million in fraud against his law partners, his clients (including Station) and the Federal Election Commission. Lazaroff was sentenced Oct. 3 in Federal District Court in St. Louis to 30 days in jail as part of a work-release program and 90 days of home confinement. Lazaroff had faced up to 33 months in prison. Station has made a formal request for the MGC to produce the letters written by the staff to the sentencing judge, letters which the Commission has not seen, and that request is also still pending.

The Company also confirmed that it has amended the asset purchase agreement ("Purchase Agreement") between the Company and its Midwest management team ("the Purchaser") to allow for the execution of one or more alternative agreements to be consummated in the event that the Purchase Agreement is terminated. The Purchase Agreement may be terminated in the event that the Purchaser does not meet certain key hurdles between now and the end of the calendar year. While the Company has not executed an alternative agreement, it has received several acquisition proposals containing substantially similar terms to the Purchase Agreement.

A copy of Station's previously issued memoranda to the MGC and related information can be found on the Web at www.stationcasinos.com.

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