The Art of Crafting a Company Pinnacle Entertainment, Inc. Annual Report 2007 We’re focused on a single goal: To build a highly successful gaming company.

AMOUNTS IN MILLIONS 2005 2006 2007

TOTAL REVENUES* $668.5 $912.4 $923.7 Consolidated ADJUSTED EBITDA** $117.6 $202.5 $169.1 OPERATING INCOME* $32.3 $95.9 $14.5 CASH FLOW FROM OPERATIONS $61.7 $206.5 $153.4

CASH AND EQUIVALENTS $156.5 $216.7 $197.3 TOTAL ASSETS $1,244.9 $1,737.8 $2,193.5 STOCKHOLDERS’ EQUITY $427.8 $694.6 $1,052.4 SHARES OUTSTANDING 41.0 48.2 59.9

Total Revenues* Consolidated Adjusted EBITDA** Dollars in Millions Dollars in Millions $1000 $225

$900 $200

$800 $175

$700 $150

$600 $125 $500

$100 $400

$75 $300

$50 $200

$100 $25

$0 $0 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007

* EXCLUDING DISCONTINUED OPERATIONS. ** BEFORE NON-ROUTINE ITEMS AND EXCLUDING DISCONTINUED OPERATIONS. Please see the endnote to the financial overview section for a definition of Consolidated Adjusted EBITDA and a reconciliation to GAAP measures. Dear Fellow Shareholders: From art to architecture, every creative endeavor demands craftsmanship.

Companies are no different. At Pinnacle Entertainment, we’ve spent 2007 refining the lines of our current business, polishing and unveiling new works, and roughing the outlines of future projects from raw materials. All of our efforts, discipline and skill remain focused on a single goal: to build a highly successful gaming company that produces superior shareholder returns. Daniel R. Lee chairman and chief executive officer

We made significant progress in the past year. Our most exciting new creation, of course, is Lumière Place in downtown St. Louis. This gaming entertainment district is the biggest project in our history, and is also among the most ambitious gaming resorts built outside of Las Vegas and Atlantic City, New Jersey. Lumière Place’s warm, expansive casino floor combines with the Four Seasons Hotel St. Louis and HoteLumière, signature restaurants and fanciful lounges to create a striking and stimulating environment. We invite you to experience all that Lumière Place has to offer on your next visit to the Midwest.

In Lake Charles, , we added a new hotel tower and additional retail space to L’Auberge du Lac. We’re confident that this $67 million investment will generate strong returns, as L’Auberge du Lac itself has. In fact, L’Auberge du Lac had an excellent year despite the construction.

Belterra also had a good year, especially given the new competition from a casino in French Lick, Indiana. We added new retail stores in the fall and refurbished many of the high-end suites with a clean, contemporary look.

Boomtown New Orleans did well, especially considering the newly rebuilt competition that has come online in the Gulf Region following the 2005 hurricanes. Boomtown Bossier City and both reported lower results that reflect the ongoing regional competition. Internationally, our main Neuquén property in Argentina performed solidly; we just added a small first-class hotel at this property.

These properties form the base of our company. They allow us to shape our current projects and imagine the future. They enable us to make the most of today’s opportunities and to weather business cycles, natural disasters and other vagaries. we do best. best. do we Refining Refining is what what is rough edges edges rough

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