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Station Casinos receives acquisition proposal

LAS VEGAS, Nevada -- (PRESS RELEASE) -- Station Casinos, Inc. (NYSE: STN) today announced that its Board of Directors has received a letter from Fertitta Colony Partners LLC proposing to acquire all of the Company's outstanding common stock for $82 per share in cash. Fertitta Colony Partners LLC is a new company formed by Frank J. Fertitta III, Chairman and Chief Executive Officer of Station, Lorenzo J. Fertitta, Vice Chairman and President of Station, and Colony Capital Acquisitions, LLC, an affiliate of Colony Capital, LLC ("Colony").

According to the proposal letter, Fertitta Colony Partners LLC has received financing commitments which are sufficient to consummate the proposed Acquisition. Frank and Lorenzo Fertitta, Blake and Delise Sartini, and Colony have provided equity funding commitments. Deutsche Bank Trust Company Americas and German American Capital Corporation have provided debt financing commitments.

Station's Board of Directors has established a Special Committee of independent directors to review the proposal. The Special Committee has also been authorized to review any alternative proposals that may be received by Station or the Special Committee. The Board of Directors appointed James E. Nave, D.V.M. (who will serve as Chairman), Lee S. Isgur, Lowell H. Lebermann, Jr. and Robert E. Lewis to serve on the Special Committee. The Special Committee has retained Bear, Stearns & Co. Inc. as its financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP and Kummer Kaempfer Bonner Renshaw & Ferrario as its legal advisors to assist the Special Committee.

The Special Committee received the proposal on December 2, 2006 and no decisions have been made by the Special Committee with respect to the Company's response to the proposal. There can be no assurance that any agreement on financial and other terms satisfactory to the Special Committee will result from the Special Committee's evaluation of the proposal by the Fertittas and Colony or any other proposals, or that any extraordinary transaction will be completed.

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