Pinnacle Entertainment Selects Yates/Paric as General Contractor for River City Casino in St. Louis County

LAS VEGAS, Aug. 11 /PRNewswire-FirstCall/ -- Pinnacle Entertainment, Inc. (NYSE: PNK) today announced the selection of Yates/Paric as the general contractor for the Company's River City casino project in the Lemay community of south St. Louis County, Missouri. Yates/Paric is a joint venture partnership of W.G. Yates & Sons Construction of Philadelphia, Mississippi and St. Louis-based Paric Corporation. River City, with a 90,000-square-foot casino, a new public roadway and other amenities, will be among the largest developments in St. Louis, and is in one of its most densely populated areas.

With offices in seven states, Yates has worked on some of the most significant casino projects in the nation, including the landmark Borgata Hotel, Casino and Spa in Atlantic City, the Pearl River Resort in Philadelphia, Mississippi and the Beau Rivage Resort and Casino in Biloxi, Mississippi.

"Yates, along with our partner, Paric, is very excited about the upcoming River City project with Pinnacle," said William Yates, President of W. G. Yates & Sons Construction Co. "We look forward to being a part of such a significant project."

Paric, based in O'Fallon, Missouri, is one of the largest privately held companies in St. Louis. Paric is a leading general contractor, construction manager and design-build firm in the St. Louis region. The company specializes in hospitality and institutional facilities, office/commercial interiors, historic renovations and the construction of healthcare facilities, senior living, commercial buildings and environmental systems.

"Paric is pleased to team with Yates on this wonderful project, a project that will benefit the entire St. Louis area," said P. Joseph McKee, Paric's President and Chief Executive Officer.

With the substantial environmental cleanup on the Lemay site now complete, construction of River City is expected to move rapidly from this point. The project is expected to create approximately 600 union construction jobs, more than 1,000 permanent jobs and hundreds of ancillary service jobs for the region.

"Our approach to this selection was based on our high standards for quality and ability to execute a project of this magnitude in a timely fashion. After a deliberate process, we found Yates/Paric to be an excellent mix of deep casino resort experience and significant local expertise. We are pleased to have them on board," said Daniel R. Lee, Chairman and Chief Executive Officer of Pinnacle Entertainment. "With Yates/Paric, we will now move ahead to the next phase of construction on this exciting new project."

The construction contract provides a guaranteed maximum price for the cost of the building itself of $149 million, which is approximately 40 percent of the total project cost of $375 million. The remainder of the project costs include furniture, gaming equipment, the hiring and training of employees, marketing costs associated with the opening, site preparation, foundations and land costs, and the cost of the entrance road, among other things. The construction contract calls for completion of the building in 18 months, with the anticipated opening of the casino soon thereafter.

About River City Casino

The first phase of the River City project, estimated to cost $375 million, is planned to include a 90,000-square-foot casino, several restaurants, a multi-use community center along with athletic fields, environmental remediation of the site (already complete) and construction of a new roadway connector from I-55 to the South Broadway corridor. Located approximately ten miles south of downtown St. Louis in the community of Lemay, River City is scheduled to open near the end of 2009, pending final approval from the Missouri Gaming Commission. River City will be situated on approximately 80 acres of land leased from the St. Louis County Port Authority.

Pinnacle Entertainment was selected for two St. Louis-area projects in early 2004 by the City and County of St. Louis, and then by the Missouri Gaming Commission in competitive bid processes that included applications from several gaming companies. The first St. Louis-area project for the company, Lumiere Place, opened in December 2007.

About Pinnacle Entertainment

Pinnacle Entertainment, Inc. owns and operates casinos in Nevada, Louisiana, Indiana, Missouri, Argentina and The Bahamas and has significant insurance claims related to a hurricane-damaged hotel and casino complex previously operated in Biloxi, Mississippi. The Company opened Lumiere Place, a $507 million casino hotel in downtown St. Louis, Missouri, in December 2007. Pinnacle also has a second casino development project under construction in the St. Louis area, which opening is dependent upon final approval by the Missouri Gaming Commission. Pinnacle is currently developing a second casino resort in Lake Charles, Louisiana, to be called Sugarcane Bay; is developing a casino resort in Baton Rouge, Louisiana; and has submitted a proposal for a casino resort in Kansas City, Kansas, subject to various approvals. Additionally, Pinnacle owns a casino site at the heart of the famed Boardwalk in Atlantic City, New Jersey, on which it plans to build a major new casino resort.

About W. G. Yates & Sons Construction

W.G. Yates & Sons Construction of Philadelphia, Mississippi was founded in 1963 and now has more than 20 permanent offices. From the start, Yates has delivered its construction services by its motto: on time, within budget, to your satisfaction. The company has now worked across the nation and has performed multiple projects in several different venues. Yates specializes in both construction management and general contracting, and currently Yates ranks #17 nationally in General Building and recognized in the top five in Entertainment (Gaming) for the last six years, according to Engineering News-Record magazine.

About Paric Corporation

Paric pairs design/build services with construction management and negotiated general construction to offer its "next-level" experience. When Paric partners with a client, Paric sets the bar higher than expected to ensure complete client satisfaction. The commercial, institutional, and industrial contractor manages construction projects ranging from universities and banks to warehouses and trade centers. Founded in 1979, Paric serves the hospitality, retail, industrial, historic renovation, interior construction, office, senior living and health-care markets.

All statements included in this press release, other than historical information or statements of historical fact, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including statements regarding the timing of Pinnacle's construction projects and expected budgets and expected job creation, are based on management's current expectations and are subject to risks, uncertainties and changes in circumstances that could significantly affect future results. Accordingly, Pinnacle Entertainment cautions that the forward-looking statements contained herein are qualified by important factors that could cause actual results to differ materially from those reflected by such statements. Such factors include, but are not limited to: (a) many construction-related factors could prevent the Company from completing its construction and development projects within budget and on time; (b) the risk that the Company's new development projects, proposed expansions to the existing facilities, and other capital intensive projects could strain the Company's financial resources and the risk that such projects and new developments might not provide for a sufficient return, if any; (c) the Company may not meet the conditions for receipt or maintenance of gaming licensing approvals for its St. Louis County project, some of which are beyond the Company's control; and (d) other risks, including those as may be detailed from time to time in Pinnacle Entertainment's filings with the Securities and Exchange Commission ("SEC"). For more information on the potential factors that could affect the Company's financial results and business, review the Company's filings with the SEC, including its Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K.

FOR FURTHER INFORMATION

At Pinnacle Entertainment -
(702) 784-7777:
Dan Lee - Chairman & CEO
Steve Capp - CFO
Chris Plant or Lewis Fanger -
Investor Relations

At Apogee Communications -
(314) 324-8567
Mack Bradley (Media)
mack@apogee-communications.com

SOURCE Pinnacle Entertainment, Inc.

CONTACT: Dan Lee, Chairman & CEO, or Steve Capp, CFO, or Investor
Relations, Chris Plant or Lewis Fanger, all of Pinnacle Entertainment,
+1-702-784-7777; or Media, Mack Bradley of Apogee Communications,
+1-314-324-8567, mack@apogee-communications.com, for Pinnacle Entertainment,
Inc.
Web site: http://www.pnkinc.com