– –759 759 Corporate overhead19364 4145 204916 – 13154 Total$118559 $4145$39792 $ 112 $759$161849 1Hollywood Casino at Penn National Race

— –(759) (759 ) Corporate overhead(19,364) 4,145 2,04916 – (13,154) Total$118,559 $4,145$39,792 $ 112 $(759)$161,849 (1)Hollywood Casino at Penn National Race Course includes the results of our Pennsylvania casino that opened on February 12, 2008, as well as the PennNational Race Course and four off-track wageringfacilities.(2)On July 1, 2008, the permanent Hollywood Slotsat Bangor facility, whichis called the HollywoodSlots Hotel and Raceway, was opened PENN NATIONAL GAMING, INC. This will result in an increase in the diluted weighted averageoutstanding share count of between 18,656,716 shares and 27,777,778 sharesdepending on the current share price; and, * When the price of Penn National Gaming`s common stock is above $67, thediluted weighted average outstanding share count will be increased by 18,656,716shares (regardless of how much the stock price exceeds $67).Reconciliation of Non-GAAP Measures to GAAPEBITDA, or earnings before interest, taxes, charges for stock compensation,Empress Casino Hotel fire, depreciation and amortization, gain or loss ondisposal of assets, and other expenses, and inclusive of loss from jointventure, is not a measure of performance or liquidity calculated in accordancewith GAAP. EBITDA information is presented as a supplemental disclosure, asmanagement believes that it is a widely used measure of performance in thegaming industry. In addition, management uses EBITDA as the primary measure ofthe operating performance of its properties, including the evaluation ofoperating personnel. EBITDA should not be construed as an alternative tooperating income, as an indicator of the Company’s operating performance, as analternative to cash flows from operating activities, as a measure of liquidity,or as any other measure of performance determined in accordance with GAAP.

TheCompany has significant uses of cash flows, including capital expenditures,interest payments, taxes and debt principal repayments, which are not reflectedin EBITDA. It should also be noted that other gaming companies that reportEBITDA information may calculate EBITDA in a different manner than the Company.EBITDA is presented as a supplemental disclosure, as management believes that itis a principal basis for the valuation of gaming companies, as this measure isconsidered by many to be a better indicator of the Company`s operating resultsthan diluted net income per GAAP. A reconciliation of the Company`s EBITDA tonet income per GAAP, as well as the Company`s EBITDA to income from operationsper GAAP, is included in the accompanying financial schedules. A reconciliation of each property`s EBITDA to income from operations is includedin the financial schedules herein.

On a property level, EBITDA is reconciled toincome from operations per GAAP, rather than net income per GAAP due to, amongother things, the impracticability of allocating interest expense, interestincome, income taxes and certain other items to the Company`s various propertieson a property-by-property basis. Management believes that this presentation ismore meaningful to investors in evaluating the performance of the Company`sindividual properties and is consistent with the reporting of other gamingcompanies. Conference Call, Webcast and Replay DetailsPenn National Gaming is hosting a conference call and simultaneous webcast at10:00 am ET today, both of which are open to the general public. The conferencecall numbers are 212/231-2921 and 415/226-5357; please call five minutes inadvance to ensure that you are connected prior to the presentation. Questionswill be reserved for call-in analysts and investors. Interested parties may alsoaccess the live call on the Internet at ; allow 15 minutes toregister and download and install any necessary software. Following its completion, a replay of the call can be accessed until May 23,2009 by dialing 800/633-8284 or 402/977-9140 (international callers) The accesscode for the replay is 21421683.