AGY Argosy Gaming

Penn National Gaming, Inc. (Nasdaq: PENN) ("Penn") announced at today's meeting of the Illinois Gaming Board (IGB) that it will divest both of Argosy Gaming Company's (NYSE: AGY) Illinois properties to secure the IGB's approval to proceed with the planned acquisition of Argosy by Penn. Under Penn National's proposal to the IGB, it would enter into an agreement to sell the Alton Belle Casino in Alton, Illinois, and the Empress Casino Joliet in Joliet, Illinois, within 18 - 24 months of completing its acquisition of Argosy Gaming Company in exchange for the IGB's approval to proceed with the acquisition of Argosy by Penn. The IGB indicated to Penn National that if assets are to be divested that it would prefer that a sale agreement be reached between Penn National and the proposed buyer(s) within 12 months of the completion by Penn of the Argosy Gaming Company transaction. Illinois Gaming Board Chairman Aaron Jaffe stated at today's meeting that he was optimistic that the proposed merger of Penn National Gaming and Argosy Gaming Company could be approved at the September 29 meeting of the IGB. The Illinois Gaming Board approval is the only remaining regulatory approval required to complete the proposed Argosy Gaming transaction and Penn National is hopeful that the IGB approval can be secured Thursday, September 29. The proposed transaction had previously been authorized by the regulatory agencies of all of the other twelve jurisdictions in which Penn and Argosy operate, as well as the Federal Trade Commission. About Penn National Gaming Penn National Gaming owns and operates casino and horse racing facilities with a focus on slot machine entertainment. Penn presently owns eleven facilities in nine jurisdictions including West Virginia, Illinois, Louisiana, Mississippi, Pennsylvania, New Jersey, Colorado, Maine and Ontario. In aggregate, Penn's facilities feature nearly 14,000 slot machines, 260 table games, 1,286 hotel rooms and 417,000 square feet of gaming floor space. As announced last month, the Company's Casino Magic - Bay St. Louis, in Bay St. Louis, Mississippi, and the Boomtown Biloxi casino in Biloxi, Mississippi, remain closed following extensive damage incurred as a result of Hurricane Katrina. For more information about Penn National, visit http://www.pngaming.com. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may vary materially from expectations. Penn describes certain of these risks and uncertainties in its filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2004. Meaningful factors which could cause actual results to differ from expectations described in this press release include, but are not limited to, risks related to the following: the passage of state, federal or local legislation that would expand, restrict, further tax or prevent gaming operations in the jurisdictions in which we do business; delays in obtaining regulatory approvals required to complete, or other delays in completing, the proposed acquisition of Argosy; our ability to successfully complete the tender offers and consent solicitations; our ability to complete the proposed acquisition of Argosy and to successfully integrate its operations; our ability to maintain regulatory approvals for our existing businesses and to receive regulatory approvals for our new businesses (including without limitation the issuance of final operators' licenses in Maine and Pennsylvania). Furthermore, Penn does not intend to update publicly any forward-looking statements except as required by law. The cautionary advice in this paragraph is permitted by the Private Securities Litigation Reform Act of 1995.