Penn National Discloses Financial Control Weaknesses

10 Mar 2005

PENNSYLVANIA – As reported by the Patriot News: "Penn National Gaming Inc. disclosed Wednesday that it has spotted four weaknesses in its internal financial controls.

"The racetrack and casino operator said it doesn't believe the deficiencies will result in any changes to the financial results it reported recently for the fourth quarter of fiscal 2004 and the full year.

"…News of the filing caused Penn National stock to drop 4.2 percent Wednesday, to $28.74 a share, in heavy trading of 2.66 million shares on the Nasdaq Stock Market. Penn National completed a 2-for-1 stock split earlier this week.

"…An analyst for Lehman Brothers not only saw no reason for concern, but suggested buying Penn National stock on any display of weakness.

"…Penn National identified these four potential weaknesses:

"--Deficiency of controls with respect to an account maintained for the benefit of horsemen at its Charles Town Races & Slots operation in West Virginia. Remediation efforts have been taken, but there has not been sufficient time to test them, the company said.

"--Inadequate documentation of controls over certain transactions.

"--Concerns expressed in a random employment survey over control measures.

"--The resignation of the chief financial officer at Charles Town before Thanksgiving and a concern that there may be inadequate documentation to confirm that the general manager and assistant general manager reviewed the 2004 financial statements of that operation…"

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	Penn National Discloses Financial Control Weaknesses 10 Mar 2005 <a href='https://ad.casinocity.com/adclick.php?n=a21efcd1'><img src='https://ad.casinocity.com/adview.php?what=-site:vendors/width:250/RON&n=a21efcd1' border='0' alt='' /></a> PENNSYLVANIA – As reported by the Patriot News: "Penn National Gaming Inc. disclosed Wednesday that it has spotted four weaknesses in its internal financial controls. "The racetrack and casino operator said it doesn't believe the deficiencies will result in any changes to the financial results it reported recently for the fourth quarter of fiscal 2004 and the full year. "…News of the filing caused Penn National stock to drop 4.2 percent Wednesday, to $28.74 a share, in heavy trading of 2.66 million shares on the Nasdaq Stock Market. Penn National completed a 2-for-1 stock split earlier this week. "…An analyst for Lehman Brothers not only saw no reason for concern, but suggested buying Penn National stock on any display of weakness. "…Penn National identified these four potential weaknesses: "--Deficiency of controls with respect to an account maintained for the benefit of horsemen at its Charles Town Races & Slots operation in West Virginia. Remediation efforts have been taken, but there has not been sufficient time to test them, the company said. "--Inadequate documentation of controls over certain transactions. "--Concerns expressed in a random employment survey over control measures. "--The resignation of the chief financial officer at Charles Town before Thanksgiving and a concern that there may be inadequate documentation to confirm that the general manager and assistant general manager reviewed the 2004 financial statements of that operation…"