Penn National Gaming Provides Update on Proposed Acquisition of Argosy Gaming Company

Business Wire, August 26, 2005

WYOMISSING, Pa. -- Penn National Gaming, Inc. (PENN: Nasdaq) ("Penn") announced today that the Illinois Gaming Board postponed its August 25, 2005 scheduled vote on Penn National's proposed acquisition of Argosy Gaming Company (AGY: NYSE). The vote of the Illinois Gaming Board is the only remaining regulatory approval required to complete the proposed transaction. The proposed transaction has 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.

The Company believes the postponement is related to the Illinois Gaming Board's need for additional time to review the information that Penn has provided and that the additional review is focused predominantly on the issue of whether the merger could result in an undue economic concentration of assets in the state. Penn has no information at this time as to when the Illinois Gaming Board will meet to vote on the proposed transaction. The Company continues to expect that if the Illinois Gaming Board's approval is secured that it will be able to complete the transaction shortly thereafter.

About Penn National Gaming

Penn National Gaming owns and operates casino and horse racing facilities with a focus on slot machine entertainment. Penn presently operates eleven facilities in nine jurisdictions including West Virginia, Illinois, Louisiana, Mississippi, Pennsylvania, New Jersey, Colorado, Maine and Ontario. In aggregate, Penn's facilities feature over 13,000 slot machines, 260 table games, 1,286 hotel rooms and 417,000 square feet of gaming floor space. In November 2004, Penn agreed to acquire all of the outstanding shares of Argosy.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may vary materially from expectations. Penn describes certain of these risks and uncertainties in its filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2004.

Meaningful factors which could cause actual results to differ from expectations described in this press release include, but are not limited to, risks related to the following: the passage of state, federal or local legislation that would expand, restrict, further tax or prevent gaming operations in the jurisdictions in which we do business; delays in obtaining regulatory approvals required to complete, or other delays in completing, the proposed acquisition of Argosy; our ability to successfully complete the tender offers and consent solicitations; our ability to complete the proposed acquisition of Argosy and to successfully integrate its operations; our ability to maintain regulatory approvals for our existing businesses and to receive regulatory approvals for our new businesses (including without limitation the issuance of final operators' licenses in Maine and Pennsylvania). Furthermore, Penn does not intend to update publicly any forward-looking statements except as required by law. The cautionary advice in this paragraph is permitted by the Private Securities Litigation Reform Act of 1995.