Pinnacle Entertainment has been working diligently to refine our plans in downtown St. Louis and create a truly unique entertainment destination. This purchase is a necessary step that will enable us to master plan a new entertainment district and community near the famed Gateway Arch.

We have, we believe, resolved all issues with Oneida Entertainment.

The increasing status of Xbox 360 as the premiere next generation digital gaming and entertainment system makes this the perfect time to introduce a carefully orchestrated licensing program that expands the Xbox brand.

We have built an impressive roster of captivating and successful children's entertainment properties. Given the increased number of brands that we are representing that focus on an older audience, we felt it would be beneficial to organize a new subsidiary primarily devoted to the marketing and licensing of these brands. We believe that we can successfully utilize our marketing and licensing expertise to build brand value for properties targeting an older consumer that are not necessarily media or character driven.

We intend to create a nationwide casino network, not unlike that of some of our larger competitors.

Hurricane Katrina has been a terrible natural disaster. Many of our employees and customers in the region have lost their homes and many of their possessions. Very few have escaped from the storm unscathed. We are determined to do everything that we can do as a company to help the region rebuild and help our employees return to their normal lives as quickly as possible.