Penn National Extends Tender Offer

WYOMISSING, Pennsylvania -- (PRESS RELEASE) -- Penn National Gaming, Inc. (PENN: Nasdaq) ("Penn") announced today that its wholly owned subsidiary Thoroughbred Acquisition Corp. ("TAC"), in connection with the previously announced cash tender offers for any and all of the $200 million aggregate outstanding principal amount of Argosy Gaming Company's ("Argosy") 9% senior subordinated notes due 2011 (CUSIP No. 040228-AJ-7) (the "9% Argosy notes") and any and all of the $350 million aggregate outstanding principal amount of Argosy's 7% senior subordinated notes due 2014 (CUSIP No. 040228-AL-2) (the "7% Argosy notes"), has extended the expiration date of each of the tender offers under the Offers to Purchase and Consent Solicitation Statements, each dated July 21, 2005 (each, an "Offer to Purchase"), to 12:00 midnight, New York City time, on September 15, 2005, unless extended or earlier terminated by TAC with respect to that issue of notes. The price determination date has been extended to 2:00 p.m., New York City time, on September 1, 2005, unless further extended. To date, approximately $199.9 million aggregate principal amount of the 9% Argosy notes and approximately $333.7 million aggregate principal amount of the 7% Argosy notes had been validly tendered and not withdrawn.

The tender offers are being conducted in connection with Penn's pending acquisition of Argosy. The closing of the acquisition of Argosy remains subject to certain conditions, including the receipt of gaming approvals in Illinois. Penn has no information at this time as to when the Illinois Gaming Board will meet to vote on the proposed transaction. Penn continues to expect that if the Illinois Gaming Board's approval is secured that it will be able to complete the transaction shortly thereafter.

The obligation to accept for payment and to pay for notes in each tender offer is subject to customary conditions, including, among other things, the consummation of Penn's acquisition of Argosy, or TAC being satisfied in its sole discretion that such consummation will occur substantially concurrently with the expiration date of the tender offers, and TAC having received the proceeds of the financing on terms satisfactory to Penn, or being satisfied in its sole discretion that such financing and such proceeds will be received substantially concurrently with the expiration date of the tender offers.

Deutsche Bank Securities Inc. is serving as the Dealer Manager and Solicitation Agent, and Mackenzie Partners, Inc. is serving as the Information Agent, in connection with the tender offers and consent solicitations. Requests for documents should be directed to MacKenzie Partners, Inc., toll-free at (800) 322-2885. Questions regarding the tender offers and consent solicitations should be directed to Deutsche Bank Securities Inc., toll-free at (800) 553-2826.

None of Penn, TAC, Argosy, the Dealer Manager and Solicitation Agent or the Information Agent, nor any of their respective subsidiaries or affiliates, makes any recommendation in connection with the tender offers. Holders must make their own decisions as to whether to tender notes, and, if so, the principal amount of notes to tender.

This announcement is not an offer to purchase, a solicitation of an offer to purchase or a solicitation of consents with respect to any securities. The tender offers and consent solicitations are being made solely by the Offers to Purchase. Other than the extension of the expiration date and the price determination date as described above, all other terms and conditions set forth in the Offers to Purchase remain unchanged.