Penn National Prices Notes Offering

WYOMISSING, Pennsylvania -- (PRESS RELEASE) -- Penn National Gaming, Inc. (PENN:Nasdaq) announced today that it had priced a private offering of $250 million aggregate principal amount of its 6 3/4% Senior Subordinated Notes due 2015. The new Senior Subordinated Notes will be unsecured senior subordinated obligations of the Company and will not be guaranteed.

The sale of the new Senior Subordinated Notes is expected to close on March 9, 2005, subject to customary closing conditions. The Company intends to use the net proceeds from the offering to fund the previously announced redemption of all $200 million in aggregate principal amount of the Company's outstanding 11 1/8% Series B Senior Subordinated Notes due March 1, 2008 and for general corporate purposes.

The new Senior Subordinated Notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933 and applicable state securities laws.