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Penn National Gaming to Acquire Pinnacle For 2.8 B!

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Staff member
Jan 14, 2008
he companies have announced today that Pinnacle Entertainment shareholders will receive USD 20.00 per share in cash and 0.42 shares of
Penn National Gaming Common Stock for each Pinnacle share in this transaction, which is expected to enhance Penn national's position as one of
North America's leading regional gaming operators and further diversify its portfolio of gaming assets.

The transaction reflects a 36% premium for Pinnacle shareholders based on Pinnacle's closing price of USD 21.86 and Penn National's closing price of USD 22.91 on
October 4, 2017. The transaction has been approved by the boards of directors of both companies and is expected to close in the second half of 2018.

Pinnacle owns and operates 16 gaming and entertainment facilities in 11 jurisdictions across the United States. Following the acquisition of Pinnacle and the
planned divestiture of four of its properties to Boyd Gaming Corporation, Penn National will have significantly greater operational and geographic diversity
and operate a combined 41 properties in 20 jurisdictions throughout North America. The transaction is expected to generate $100 million
in annual run-rate cost synergies following integration and is anticipated to be immediately accretive to free cash flow in the first year.
Pro forma for the divestitures and synergies, the acquisition reflects a multiple of 6.6x LTM EBITDA.

Timothy J. Wilmott, Chief Executive Officer of Penn National Gaming, commented, "By combining our highly complementary
portfolios and similar operating philosophies, we will be able to leverage the strengths of both our companies and create an unparalleled
experience for our regional gaming customers, while generating significant value for our shareholders and business partners."

Mr. Wilmott continued, "The combined company will benefit from enhanced scale, additional growth opportunities, and best-in-class operations,
creating a more efficient integrated gaming company. Going forward, we will have the financial and operational flexibility to further execute on our
strategic objectives, while maintaining our track record of industry-leading profit margins and generating significant cash flow to reduce leverage over time.
We look forward to welcoming Pinnacle's talented employees to our team and to further enhance our status as North America's leading regional gaming operator."