Penn National Gaming Declares 2-for-1 Stock Split

WYOMISSING, Pennsylvania -- (PRESS RELEASE) -- Penn National Gaming, Inc. (NASDAQ:PENN) announced today that its Board of Directors has approved a 2-for-1 split of the Company's common stock. The stock split will be in the form of a stock dividend of one additional share of the Company's common stock for each share held. The additional shares will be distributed on March 7, 2005 to shareholders of record on February 14, 2005

As a result of the stock dividend, the number of outstanding shares of Penn National's common stock will increase to approximately 81.9 million. The Company's financial guidance, initiated today, for the quarter ending March 31, 2005 and full year ending December 31, 2005, does not reflect the effect of the 2-for-1 split of the Company's common stock.

Peter M. Carlino, Chief Executive Officer of Penn National said, "The Board believes the stock dividend will enhance the liquidity of Penn National shares and make them attractive to a broader range of investors. The Board's decision to effect a stock dividend also recognizes the Company's strong historical performance, as well as the significant near- and long-term growth opportunities that we believe lie ahead."

Penn National Gaming owns and operates casino and horse racing facilities with a focus on slot machine entertainment. The Company presently operates eleven facilities in nine jurisdictions including West Virginia, Illinois, Louisiana, Mississippi, Pennsylvania, New Jersey, Colorado, Maine and Ontario. In aggregate, Penn National's facilities feature over 13,000 slot machines, 260 table games, 1,286 hotel rooms and 417,000 square feet of gaming floor space.