Penn National to Purchase Bangor Historic Track

The purchase price for both of these opportunities includes up front cash, progress and milestone payments and a final payment subject to adjustment based on the economics of the opportunities. The closing date and total purchase price will be determined based on the outcome of the various conditions and contingencies.

In November 2003, voters in Maine approved a ballot initiative, effective in the first quarter of 2004, authorizing the operation of slot machines at existing racetracks in the State, subject to local referenda. The citizens of Bangor approved a local referendum on this matter in June 2003. Bangor Historic Track anticipates having all necessary licenses and permits to commence gaming and racing operations in the first quarter; however, no assurance can be given that such licenses and permits will be granted in a timely manner.

Vernon Downs is one of eight racetracks in New York State that have been authorized to place Video Lottery Terminals (VLTs) in their facility.

Peter M. Carlino, Chief Executive Officer of Penn National commented: "We believe this deal represents an attractive opportunity for Penn National and its shareholders, as well as the many employees, horsemen, breeders, and farm owners across Maine who depend on the long term survival of the state's harness racing industry. Bangor Raceway will be operated by an experienced, professional and responsible management team, thereby ensuring it will serve as a significant economic engine for its local and state economies for years to come."

Penn National Gaming owns and operates: Penn National Race Course, a thoroughbred racing facility in Pennsylvania; Pocono Downs, a harness racing facility in Pennsylvania; Charles Town Races, a thoroughbred racing facility in West Virginia which also offers slots; an interest in the Pennwood Racing Inc. joint venture which owns and operates Freehold Raceway in New Jersey; and, various casino properties throughout the United States.