Penn National Proposes Divesting Both Illinois Argosy Properties

WYOMISSING, Pennsylvania -- (PRESS RELEASE) -- Penn National Gaming, Inc. (Nasdaq: 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.