Penn National to Acquire Temporary Maine Site

WYOMISSING, Pennsylvania -- (PRESS RELEASE) -- Penn National Gaming, Inc. (Nasdaq: PENN - News) announced today that its subsidiary, Bangor Historic Track, Inc. (BHT), has agreed to acquire an off-track betting facility in Bangor, Maine which Penn National intends to use, pending regulatory approval, as a temporary gaming facility for approximately 475 slot machines. The timetable Penn National envisioned for the permanent gaming facility at Bass Park has been delayed due to the need for the recently enacted statute protecting confidential information in the licensing process and because of Penn National's cooperation with the city of Bangor in continuing to explore additional available options for the location of the permanent facility.

Commenting on the announcement, Peter M. Carlino, Chief Executive Officer of Penn National Gaming stated, "We are delighted to reach an agreement with the Miller family for the purchase of this site and believe the commencement of operations, pending all necessary licensing approvals, provides benefits to all involved parties. In addition to generating revenues ahead of schedule, this project will create new jobs and economic development in Bangor earlier than anticipated while allowing us to begin to revitalize the Maine harness racing industry."

Under the terms of the agreement, BHT will acquire Miller's Inc., an approximate 27,000 square foot facility situated on 2.5 acres, which includes 250 parking spaces, from the Miller Family Limited Partnership and John Miller for $3.8 million. The transaction, expected to close in the summer of 2005, is subject to customary closing conditions and regulatory approvals including the Maine Harness Racing Commission and the Maine Gaming Control Board.