Penn National Calls for Redemption of Notes

WYOMISSING, Pennsylvania -- (PRESS RELEASE -- Penn National Gaming, Inc. (PENN:Nasdaq) announced today that it has called for redemption all $200 million in aggregate principal amount of its outstanding 11 1/8% Series B Senior Subordinated Notes due March 1, 2008. The redemption price is $1,055.63 per $1,000 principal amount, plus accrued and unpaid interest to the scheduled redemption date, which is March 10, 2005. The Company intends to fund the redemption of the Notes from available cash, borrowings under its revolving credit facility, net proceeds of private replacement financing or a combination thereof. Any securities offered in any such private replacement financing will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.