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Station Discusses Court Ruling, Development Plans

The land to be taken into trust is a 49-acre parcel located approximately 7 miles north of Interstate 80 in Placer County, California, in the Sacramento Metropolitan area. Pursuant to the terms of the Development Services and Management Agreements entered into by Station and the UAIC, and subject to compliance with the terms of a Memorandum of Understanding entered into by the UAIC and Placer County concerning the development of the project, the Company and the UAIC intend to develop Thunder Valley Station Casino on the 49-acre parcel.

Thunder Valley Station Casino is planned to be an approximately 200,000 square-foot facility which will reflect historical influences of the UAIC, including various water and fire features. It is anticipated that the casino will house between 1,250 and 2,000 slot machines and 100 table games, including a private VIP gaming area. The facility will have numerous dining and entertainment amenities, including a center pit bar, a 1200-seat showroom, three specialty restaurants, a 500-seat buffet, a food court, and parking for 3,000 vehicles. The Company estimates that the facility will open during the second half of 2003 and anticipates the cost of the project to be approximately $215 million. The Company and the UAIC intend to finance the project through a group of bank lenders, with the Company providing a completion guaranty and credit support.

Other Development -- Summerlin Project

In July 2002, the Company announced that it had entered into an agreement that gives it the right to acquire approximately 73 acres of land in the Summerlin master-planned community, in Las Vegas, Nevada. The land is located on Charleston Boulevard at the Interstate-215/Charleston interchange. The purchase price for the property is $65 million. The agreement calls for a due diligence period which expires in October 2002, at which time the Company expects to make a payment of $6.4 million which will be fully applicable to the purchase price. Subject to the satisfactory completion of its due diligence, the Company anticipates closing the purchase of the property during the second quarter of 2003.

The Company has not yet determined the timing of the project, which is dependent on a number of variables, including the final determination of the project scope and budget, as well as the Company's leverage ratios.

"We are very excited about this opportunity," stated Glenn Christenson, Executive Vice President and Chief Financial Officer. "As a result of our excellent position in the market, the project's timing is completely in our control. In the past we have constructed new projects and expanded existing facilities on an accelerated timeframe to meet strategic objectives. This project is different in that the competitive landscape on the west side of town will not be measurably affected by our competitors in the future because we own the three sites that can be developed."

The Company has repeatedly stated that its strategy is to focus on operations, maintain flexibility in its capital structure, shrink its capital base, and take a balanced approach to growth. "We intend to shrink the capital base primarily by reducing debt," stated Christenson.

"However, we may also shrink our capital base through our approved share repurchase program. As part of our balanced approach to growth, we don't intend to commence construction on the Summerlin project until we believe we will be able to maintain a leverage ratio (Debt divided by Earnings before Interest, Taxes, Depreciation, and Amortization ("EBITDA")) of approximately 4.5 times or less throughout the construction process," stated Christenson. "Once the project opens, the leverage ratio should reduce quickly as the EBITDA from the Summerlin project will be added to that calculation."

The Summerlin project will be part of Summerlin Centre, which is being developed by the Howard Hughes Corporation. In addition to the Company's planned resort/casino, Summerlin Centre will include an eight-acre Central Park, a 1.5 million square foot regional retail center, an office district encompassing more than 2 million square feet of mid- and high-rise buildings, a high density urban residential district, and two traditional suburban residential districts offering both single- and multi-family housing.

Station Casinos, Inc. is the leading provider of gaming and entertainment to the residents of Las Vegas, Nevada. Station's properties are regional entertainment destinations and include various amenities, including numerous restaurants, entertainment venues, movie theaters, bowling, and convention/banquet space, as well as traditional casino gaming offerings such as video poker, slot machines, table games, bingo and race and sports wagering. Station owns and operates Palace Station Hotel & Casino, Boulder Station Hotel & Casino, Santa Fe Station Hotel & Casino and Wild Wild West Gambling Hall & Hotel in Las Vegas, Nevada, Texas Station Gambling Hall & Hotel and Fiesta Rancho Casino Hotel in North Las Vegas, Nevada, and Sunset Station Hotel & Casino and Fiesta Henderson Casino Hotel (formerly The Reserve) in Henderson, Nevada. Station also owns a 50 percent interest in both Barley's Casino & Brewing Company and Green Valley Ranch Station Casino in Henderson, Nevada.

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