Penn National secures exclusive purchase option

In November 2008, Maryland will hold a state wide referendum where voters will decide whether to authorize up to 15,000 slot machines in the city of Baltimore and the counties of Allegheny, Anne Arundel, Cecil and Worcester. There is no requirement that any of the slot venues be at racetracks. Should voters approve the referendum, Penn National Gaming intends to apply for a gaming license and proposes to invest approximately $125 million in the development of an entertainment center at the site that would include 2,500 slot machines.

The 36-acre parcel of land in Cecil is located along Interstate 95 and borders Pennsylvania and Delaware along the Chesapeake Bay.

Peter M. Carlino, Chief Executive Officer of Penn National commented, "Our interest in creating a facility in Maryland is consistent with the Company's long-term strategy to increase our scale and diversity in new and established regional gaming markets by leveraging our property development skills and financial resources. We intend to support Maryland's November slot machine referendum both financially and by educating voters on the potential economic benefits of new development in the state as we are committed to building distinctive entertainment centers that create jobs, tax revenues and other sustainable economic benefits for the regions where we operate."

"The optioned 36-acre site in Cecil County is an ideal location for investment given its proximity to Delaware and the Baltimore and Philadelphia metropolitan regions. Our proposed facility represents an excellent complement to Stewart Associates' development which already includes plans for retail, a hotel and a visitor's center. We look forward to meeting with state and local officials, as well as local business leaders, to introduce Penn National and to discuss our vision to develop a large-scale entertainment facility which will bring direct economic benefits to the region and the state."