Penn National Gaming Secures Property Insurance

WYOMISSING, Pennsylvania -- (PRESS RELEASE) -- Penn National Gaming, Inc. (Nasdaq: PENN) announced today that it has secured $400 million of "all risk" property insurance with sub-limits of $200 million for named windstorm and related storm surge, flood and earthquake losses. There is a $25 million deductible for named windstorm events, and lesser deductibles for other events. The incremental cost of securing this insurance will impact Penn National's third quarter and 2006 results (as provided in the Company's guidance on July 27) by $0.02 and $0.05 per diluted share, respectively.

William J. Clifford, Chief Financial Officer of Penn National commented, "Clearly we are disappointed with the cost of this insurance, however the Company believes it was prudent to secure the coverage for the next twelve months. Given the changes that have occurred in the insurance industry, management and the Board of Directors will be evaluating the Company's options with the goal of identifying an alternative to the increased cost of insurance."