Boyd Gaming to Seek Pennsylvania Gaming License

LAS VEGAS, Dec. 7 /PRNewswire-FirstCall/ -- Boyd Gaming Corporation today announced that the Company has acquired property and intends to apply for a gaming license in Pennsylvania. The 125-acre site, part of a 260-acre planned retail and commercial development located in Limerick Township about a 20 minute drive from the extensive retail and highway hub in King of Prussia, is intended to serve the highly populated northern and western suburbs of the Philadelphia metropolitan area.

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William S. Boyd, Chairman and Chief Executive Officer of Boyd Gaming, commented, "With most of the known gaming sites in the Philadelphia area located in the eastern and southern sections, we believe we have identified an excellent location to conveniently serve a large and growing population with a first-rate gaming and entertainment facility. In addition, our location will be very convenient to the cities of both Reading and nearby Pottstown."

The Company is planning to develop the project in connection with prominent Pennsylvania business and professional leaders. The group of limited partners includes Pat Rooney, Jr., Thomas Brogan, David Sweet and Sylvan Lutkewitte. Bill Boyd remarked, "We are pleased to be joined in our application for this project by such an outstanding group of Pennsylvanians."

If selected, the Company plans to invest approximately $325 million in the development of the first of four planned phases of a first-class casino entertainment facility. The first phase of the project will be designed for 3,000 slot machines, four restaurants, three bars and lounges, a 2,000-space parking garage and other amenities.

The site is located on Route 422 at the Sanatoga exit, adjacent to Philadelphia Premium Outlets, a planned 120-store upscale outlet center on approximately 78 acres of the 260-acre site to be built by Roseland, New Jersey-based Chelsea Property Group, a division of Simon Property Group . The outlet center is slated to open in 2007. Bill Boyd stated, "We look forward to working with Chelsea to create a successful shopping and entertainment complex for the large population in the Philadelphia suburbs and southestern Pennsylvania."

Boyd Gaming, which will own a substantial majority of and control the project, and its partners are planning to file applications with the Pennsylvania Gaming Control Board later this month.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include information regarding the Company's expectations, goals or intentions regarding the future, including but not limited to statements regarding, the Company's intent to apply for a Pennsylvania gaming license, the timing for filing such application, statements regarding the location of the property and the benefits of such location (including the region that the new property is intended to serve), statements regarding the anticipated development of a first-class casino entertainment facility on the property (as well as subsequent development phases), the amount of the Company's anticipated investment in the first phase of the development project, the type and amount of amenities to be included at the new casino and statements (including the anticipated number of stores and estimated opening date) regarding the Philadelphia Premium Outlets to be located adjacent to the location of the property. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. In particular, the Company can provide no assurances that it will be granted a gaming license in Pennsylvania, that the Company will be able to develop the property as currently anticipated, or at all, that any development on the property will benefit from the property's location, that the amount of the Company's anticipated investment in the first phase of the new development project will approximate current expectations, that the Company's new development project will include the anticipated amenities or achieve market acceptance, that the Company will be able to development subsequent phases of the project and that the adjacent premium outlet stores will be completed, and if completed, will provide any benefits to the new development project. Among the factors that could cause actual results to differ materially are the following: the failure to obtain a gaming license or other necessary regulatory approvals in Pennsylvania, competition, increased costs (including marketing costs) financial community and rating agency perceptions of the Company, changes in laws and regulations, including increased taxes, the availability and price of energy, weather, regulation, economic, credit and capital market conditions and the effects of war, terrorist or similar activity. In addition, the new development project is subject to those risks inherent in the development and operation of a new business enterprise, including unanticipated design, construction, regulatory, environmental and operating problems and lack of demand for the project. If the new development project becomes operational, it will face many of the same risks that the Company's current properties face. The cost of any project, including the new development project, may vary significantly from the Company's expectations, and the Company may have a limited amount of capital resources to fund cost overruns on any project. If the Company cannot finance cost overruns on a timely basis, the completion of one or more projects, including the new development project, may be delayed until adequate funding is available. Additional factors that could cause actual results to differ are discussed under the heading "Investment Considerations" and in other sections of the Company's Form 10-K for the fiscal year ended December 31, 2004 on file with the Securities and Exchange Commission, and in its other current and periodic reports filed with, or furnished to, the Commission from time to time. All forward-looking statements in this document are made as of the date hereof, based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.

Headquartered in Las Vegas, Boyd Gaming Corporation is a leading diversified owner and operator of 18 gaming entertainment properties, plus one under development, located in Nevada, New Jersey, Mississippi, Illinois, Indiana and Louisiana. Boyd Gaming press releases are available at http://www.prnewswire.com/. Additional news and information on Boyd Gaming can be found at http://www.boydgaming.com/ .