Pinnacle and President Casinos Reach Settlement

LAS VEGAS, Nevada -- Pinnacle Entertainment, Inc. (NYSE: PNK) announced that it has reached a settlement agreement with President Casinos, Inc., President Riverboat Casino-Missouri, Inc. (PRC-MO) and
Pinnacle Entertainment  the Official Committee of Equity Security Holders' of President Casinos, Inc. As part of the settlement, the Equity Committee will withdraw its competing reorganization plan and support the PRC-MO reorganization plan, which provides for the sale of 100% of the PRC-MO common stock to Pinnacle for approximately $31.5 million.

Pinnacle holds approximately $62 million in allowed claims against the PRC-MO bankruptcy estate. Pursuant to the settlement and the PRC-MO reorganization plan, Pinnacle will pay approximately $31.5 million for the PRC-MO common stock and receive a distribution of approximately $52 million from the estate. On that basis, Pinnacle effectively will have paid approximately $41.5 million for the President Casino in St. Louis and certain related assets. Pinnacle may receive up to another $5 million in payments at a later date, and has agreed to waive an additional $5 million in claims.

The United States Bankruptcy Court for the Eastern District of Missouri in St. Louis granted a motion to approve the settlement at a hearing held yesterday. A hearing to consider confirmation of the PRC-MO plan of reorganization is scheduled to take place on November 29, 2006. In addition, the Missouri Gaming Commission must approve the change of control from PRC-MO to Pinnacle. It is expected that the Missouri Gaming Commission will consider Pinnacle's request for change of control after the PRC-MO reorganization plan is confirmed by the bankruptcy court.

"This settlement is a further step towards Pinnacle's purchase of the President Casino St. Louis," said Daniel R. Lee, Chairman and CEO of Pinnacle Entertainment. "We look forward to welcoming the employees of the President Casino into the Pinnacle family."

President Casinos and PRC-MO have been operating under Chapter 11 bankruptcy protection since June 20, 2002. Located on the Mississippi River in downtown St. Louis, Missouri, the President Casino St. Louis Riverfront houses approximately 1,000 slot machines and 30 table games. It is located within walking distance of the Laclede's Landing historic district and Pinnacle's St. Louis City project.

Groundbreaking on Pinnacle's nearby $430 million downtown project took place in September 2005. The first-class resort will open in 2007 and will include a 90,000-square-foot casino, a 200-room luxury hotel, spa, business center, fine restaurants and 12,000 square feet of meeting and convention space.

In November 2005, the Company broke ground on the $375 million River City Casino & Hotel in the Lemay area of south St. Louis County. Scheduled to open in 2008, the casino will include 3,000 slot machines and 60 table games, along with a 100-room hotel, full-service spa, restaurants, a boutique bowling alley, a multiplex movie theatre, an indoor ice rink, a public park with athletic fields and a hatch-shell music and entertainment venue.