We believe that higher bids could be likely from both Colony and Pinnacle.

We continue to believe the acquisition would make strategic sense for Pinnacle, transforming it from a regional operator to a national casino company with an extensive development pipeline.

Las Vegas is one of the top destination getaways in North America and a great value compared with the alternatives such as Disney World, New York City and San Francisco.

Despite the phenomenal growth of Las Vegas, the construction talent pool is not deep enough to provide the needed labor to build all currently announced projects. We believe if all announced and anticipated projects were to proceed before the end of the decade, a significant portion would not get off the ground given the limited depth of the construction talent pool, most importantly subcontractors.

If Lake Charles avoids a direct hit, devastation to the primary feeder market could have a negative impact as coverage from business interruption insurance is not certain.

This offering is not a complete surprise, reducing insider ownership and improving the liquidity of the stock. However, we find the timing of the sale interesting, ahead of the opening of Wynn Macau in the third quarter of 2006.