Pinnacle Agreement to Purchase Embassy Suites Hotel

Pinnacle Entertainment, Inc.
announced today that it has entered into an agreement with FelCor Lodging
Limited Partnership to purchase the Embassy Suites St.Louis-Downtown. The
purchase price is the greater of either $38 million or twelve times
trailing-twelve-month EBITDA. Located on Laclede’s Landing, the 297-suite
hotel will adjoin the proposed casino and luxury hotel that Pinnacle plans
to build in downtown St. Louis. The transaction is subject to various
approvals and is expected to close in the first quarter of 2005.“We are excited about incorporating the Embassy Suites hotel into our
development plans for downtown St. Louis. In addition to directly
attaching the Embassy Suites to our proposed casino and luxury hotel, we
will also integrate the Embassy Suites into the system of walkways and
buildings connecting to the America’s Center convention center,” said
Daniel R. Lee, Chairman and CEO of Pinnacle Entertainment. “This agreement
further strengthens our commitment to the city of St. Louis and our
redevelopment goals for the area surrounding Laclede’s Landing.”
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