<PAGE>
EXHIBIT (C)(2)
DRAFT - CONFIDENTIAL
--------------------
PRESENTATION TO THE SPECIAL COMMITTEE OF THE
BOARD OF DIRECTORS OF
PINNACLE ENTERTAINMENT, INC.
REGARDING THE PROPER RESPONSE TO THE
PROPOSED OFFER FROM
COLONY CAPITAL, INC.
Jefferies & Company, Inc.
March 24, 2000
DRAFT
<PAGE>
Presentation to the Special Committee
--------------------------------------------------------------------------------
The following pages contain material provided to the Special Committee
of the Board of Directors (the "Committee") of Pinnacle Entertainment, Inc.
("Pinnacle" or the "Company") by Jefferies & Company, Inc. ("Jefferies") for the
purpose of evaluating the offer by Colony Capital, Inc. ("Colony" or the
"Acquiror") to acquire Pinnacle.
The accompanying material was prepared on a confidential basis solely
for use in connection with an oral presentation to the Committee and not with a
view towards complying with disclosure standards under state and federal
securities laws. The information contained in this presentation was based upon
publicly available information obtained by Jefferies or information furnished by
Pinnacle. Jefferies has relied, without independent investigation or
verification, on the accuracy, completeness and fair presentation of all such
information, and the conclusions contained herein are conditioned upon such
information (whether written or oral) being accurate, complete and fair in all
respects.
All budgets, projections, financial analyses, reports and other
information with respect to the Company's operations contained herein have been
prepared by the management of the Company or are derived from such budgets,
projections, financial analyses, reports and other information which involve
numerous and significant subjective determinations made by such managers. The
estimates, budgets and projections contained herein may or may not be achieved
and differences between projected results and those actually achieved may be
material. With respect to the Company's financial projections examined by
Jefferies, Jefferies assumed that they were reasonably prepared on bases
reflecting the best currently available estimates and good faith judgments of
the managers of the Company as to the future performance of the Company and that
the Company will perform in accordance with such projections for all periods
specified therein. No representation or warranty, expressed or implied, is made
as to the accuracy, completeness or fairness of such information and nothing
contained herein is, or shall be relied upon as, a promise or representation,
whether as to the past or the future. Neither Jefferies nor any of its advisors
or accountants takes any responsibility for the accuracy or completeness of any
of the accompanying material. Jefferies has not been requested to, and did not
make an independent evaluation or appraisal of the assets or liabilities
(contingent or otherwise) of the Company or the Acquiror, nor has Jefferies been
furnished with any such evaluations or appraisals.
The preparation of the material contained herein involves various
determinations as to the most appropriate and relevant methods of financial
analyses and the application of those methods to particular circumstances and,
therefore, such an opinion is not readily susceptible to summary description.
Furthermore, Jefferies did not attribute any particular weight to any analysis
or factor considered by it, but rather made qualitative judgments as to the
significance and relevance of each analysis and factor. Accordingly, Jefferies'
analyses must be considered as a whole. Considering any portion of such analyses
and of the factors considered, without considering all analyses and factors,
could create a misleading or incomplete view of the process underlying the
conclusions expressed herein. In its analyses, Jefferies made many assumptions
with respect to industry performance, general business and economic conditions
and other matters, many of which are beyond the control of the Company. Any
estimates contained in these analyses are not necessarily indicative of actual
values or predictive of future results or values, which may be significantly
more or less favorable than as set forth herein. In addition, analyses relating
to the value of businesses do not purport to be appraisals or to reflect the
prices at which businesses actually may be sold.
These materials are for the use of the Committee only and may not be
used for any other purpose without Jefferies' written consent. These materials
do not constitute an opinion of fairness with respect to the offer by Colony nor
a recommendation to any holder of the Company's common stock as to whether to
tender such holder's shares or as to how such person should vote with respect to
the Transaction.
DRAFT -i-
<PAGE>
<TABLE>
<CAPTION>
TABLE OF CONTENTS
--------------------------------------------------------------------------------
Tab
---
<S> <C>
I. Executive Summary ............................................. 1
II. Overview of Company............................................ 2
III. Transaction Overview........................................... 3
IV. Valuation Analysis............................................. 4
V. Exhibits....................................................... 5
A. Termination Fee Analysis
B. Premiums Paid Analysis
C. Comparable Equity Trading / M&A Transaction Analyses
D. Discounted Cash Flow Analysis
</TABLE>
DRAFT -ii-
<PAGE>
--------------------------------------------------------------------------------
EXECUTIVE SUMMARY
--------------------------------------------------------------------------------
DRAFT -1-
<PAGE>
Executive Summary
--------------------------------------------------------------------------------
Overview of the Offer
-- Colony has offered to purchase all of the publicly-held shares of
Pinnacle for $25.00 per share (the "Offer") subject to, among
other things:
-- Reaching an acceptable agreement with management, including a
roll-over of a substantial portion of their shares and
options
-- Reaching a definitive purchase agreement with "No Shop" terms
through December 31, 2000 and "Break-Up" fee to be negotiated
-- Regulatory approval
-- Successful tender offer and exit consent for the Company's
public debt
-- Obtaining financing on acceptable terms
DRAFT -2-
<PAGE>
Executive Summary
--------------------------------------------------------------------------------
Purpose of the Presentation
-- Discuss possible alternatives for the Company
-- Preliminarily evaluate an exit by existing stockholders
-- Trading history
-- Performance against benchmarks
-- Market outlook
-- Preliminarily evaluate the terms and conditions of the Offer
-- Financing conditions
-- Termination fee
-- Management interests
-- Preliminarily evaluate the Offer against several valuation
benchmarks
-- Comparable merger and acquisition transaction analysis
-- Comparable equity trading analysis
-- Premiums paid analysis
-- Discounted cash flow analysis
DRAFT -3-
<PAGE>
Executive Summary
--------------------------------------------------------------------------------
Possible Alternatives
-- Do not pursue a transaction
-- Accept the Offer from Colony
-- Negotiate the Offer from Colony
-- Conduct an auction
-- Pursue other possible alternatives (e.g., recapitalization)
DRAFT -4-
<PAGE>
Executive Summary
--------------------------------------------------------------------------------
Preliminary Evaluation Considerations
-- Recent developments
-- Construction of the Belterra Casino in Southern Indiana
-- Recent/pending divestiture of race-track properties
-- Pending divestiture of certain casinos
-- Disposal of excess land
-- Positive
-- Stable, recurring cash flows
-- Strong barriers to entry (e.g., licensing
requirements/limitations)
-- Low cost financing
-- Significant liquidity
-- Negative
-- Highly regulated on a jurisdiction by jurisdiction basis
-- Limited research coverage
-- Highly competitive
-- Growth is capital intensive (i.e., expansion/development
projects)
DRAFT -5-
<PAGE>
--------------------------------------------------------------------------------
OVERVIEW OF COMPANY
--------------------------------------------------------------------------------
DRAFT -6-
<PAGE>
Overview of Company
================================================================================
Summary of Historical Operating Results - Pro Forma
($ in Millions)
-- The following historical operating results are pro forma for
recent/pending divestitures
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
Pro Forma Fiscal Years Ended December 31, Budget Run-Rate
-------------------------------------------------
1997 1998 1999 2000 2000
------------ ---------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Net Revenues:
------------
Boomtown Reno.................................. $ 68.6 $ 67.5 $ 80.4 $ 83.7 $ 83.7
Boomtown New Orleans........................... 77.9 95.6 106.0 110.5 110.5
Casino Magic Biloxi............................ 62.3 74.2 93.3 98.1 98.1
Casino Magic Bossier City...................... 93.2 111.2 140.1 153.8 153.8
Casino Magic Argentina......................... 17.5 20.4 22.0 23.8 23.8
Belterra....................................... -- -- -- 59.1 167.0
Other.......................................... 8.2 8.0 8.0 10.0 10.0
-------- -------- -------- -------- --------
Total Net Revenues.......................... $ 327.7 $ 376.9 $ 449.9 $ 539.1 $ 647.1
EBITDA:
------
Boomtown Reno.................................. $ 8.8 $ 7.8 $ 15.2 $ 15.8 $ 15.8
Boomtown New Orleans........................... 22.4 29.5 33.4 32.0 32.0
Casino Magic Biloxi............................ 9.7 14.0 22.0 22.8 22.8
Casino Magic Bossier City...................... 11.6 23.5 33.1 37.2 37.2
Casino Magic Argentina......................... 6.2 8.4 8.8 9.6 9.6
Belterra....................................... -- -- -- 14.5 44.8
Other.......................................... 7.5 7.5 7.1 9.4 9.4
Corporate...................................... (7.9) (10.3) (18.4) (16.5) (16.5)
-------- -------- -------- -------- --------
Total EBITDA................................ $ 58.3 $ 80.5 $ 101.3 $ 124.8 $ 155.1
Operating Data
--------------
Net Revenues Growth............................ NA 15.0% 19.4% 19.8% NA
EBITDA Margin.................................. 17.8% 21.3% 22.5% 23.2% 24.0%
================================================================================================================================
</TABLE>
DRAFT -7-
<PAGE>
Overview of Company
================================================================================
Summary Projected Operating Results
($ in Millions)
-- Management is developing a capital intensive plan to grow the Company
-- Developments/Expansions
. Remaining $160 million cost of $200 million Belterra
development
. $100 million expansion of Casino Magic Biloxi
. $100 million expansion of Casino Magic Bossier City
. Other expansions/renovations in Reno, New Orleans, and
Argentina
-- Targeted 20% to 25% EBITDA return on development/expansion
capital expenditures
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
Budget Projected Fiscal Years Ended December 31,
----------------------------------------------
2000 2001 2002 2003 2004
---------- ---------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C>
Capital Expenditures:
Maintenance................................ $ 12.9 $ 17.0 $ 19.0 $ 19.0 $ 19.0
Development/Expansion...................... 179.7 200.0 -- -- --
-------- -------- -------- -------- --------
Total Capital Expenditures.............. $ 192.6 $ 217.0 $ 19.0 $ 19.0 $ 19.0
======== ======== ======== ======== ========
============================================================================================================================
</TABLE>
DRAFT -8-
<PAGE>
Overview of Company
================================================================================
Summary Projected Operating Results (Cont'd)
($ in Millions)
-- The following projected operating results based on discussion with
management
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
Budget Projected Fiscal Years Ended December 31,
--------------------------------------------------
2000 2001 2002 2003 2004
----------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net Revenues:
------------
Boomtown Reno.............................. $ 83.7 $ 85.4 $ 83.3 $ 81.2 $ 81.2
Boomtown New Orleans....................... 110.5 112.7 115.0 117.3 119.6
Casino Magic Biloxi........................ 98.1 98.1 181.6 186.1 190.8
Casino Magic Bossier City.................. 153.8 146.1 219.2 230.2 241.7
Casino Magic Argentina..................... 23.8 33.3 34.6 36.0 37.5
Belterra................................... 59.1 167.0 170.4 173.8 177.3
Other...................................... 10.0 10.0 10.0 10.0 10.0
-------- --------- --------- --------- ---------
Total Net Revenues...................... $ 539.1 $ 652.8 $ 814.1 $ 834.6 $ 858.0
EBITDA:
------
Boomtown Reno.............................. $ 15.8 $ 16.2 $ 15.4 $ 14.6 $ 14.6
Boomtown New Orleans....................... 32.0 33.8 34.5 35.2 35.9
Casino Magic Biloxi........................ 22.8 22.6 45.4 46.5 47.7
Casino Magic Bossier City.................. 37.2 33.6 54.8 57.5 60.4
Casino Magic Argentina..................... 9.6 13.3 13.9 14.4 15.0
Belterra................................... 14.5 44.8 46.0 46.9 47.9
Other...................................... 9.4 9.4 9.4 9.4 9.4
Corporate.................................. (16.5) (16.8) (17.2) (17.5) (17.9)
-------- --------- --------- --------- ---------
Total EBITDA............................ $ 124.8 $ 156.9 $ 202.2 $ 207.1 $ 213.0
Operating Data
--------------
Net Revenues Growth........................ 19.8% 21.2% 24.7% 2.5% 2.8%
EBITDA Margin.............................. 23.2% 24.0% 24.8% 24.8% 24.8%
================================================================================================================================
</TABLE>
DRAFT -9-
<PAGE>
Overview of Company
-------------------------------------------------------------------------------
Excess Assets
-- Pinnacle's recent and future divestitures have left the company with a
favorable pro forma cash position
-- Sale of land adjacent to Hollywood Park to Home Depot completed
-- Assumes sale of Casino Magic Bay St. Louis and Boomtown Biloxi to
Penn National Gaming
. Scheduled to seek regulatory approval in April and expected
to close in May
. Conditioned upon financing (pro forma debt to EBITDA is
approximately 4.5x)
-- Assumes sale of Turf Paradise
. Expected to close in May
. No financing conditions
-- Assumes sale of land in Inglewood
. Hovnanian deal did not close
. Management believes that a deal can close before the end of
the year
-- Considers Belterra remaining development costs
-- Consideration for other excess assets
. Considers properties in Reno and Missouri, pending insurance
proceeds, Ogle House, notes due from Roski/Yakama and value
of NOLs
. Does not consider 2% ownership in TVG, option value of
potential new license in Louisiana or dockside legislation
in Indiana or Louisiana
-- Assumes the call of the 13% First Mortgage Notes
DRAFT -10-
<PAGE>
Overview of Company
------------------------------------------------------------------------------
Excess Assets (CONT'D)
($ in Millions)
------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Expenses and Uncompleted Completed
Value Taxes Belterra Belterra
<S> <C> <C> <C> <C>
PNK Cash Balance, 12/31/1999.......................................................... $ 246.8 $ 246.8
Land Adjacent to Hollywood Park................................ 24.0 10.1 13.9 13.9
Bay St. Louis and Biloxi Properties............................ 195.0 25.2 170.0 170.0
Turf Paradise.................................................. 53.0 14.6 38.4 38.4
Inglewood Land................................................. 63.0 21.5 41.5 41.5
Reno Land...................................................... 4.0 -- 4.0 4.0
Missouri Land.................................................. 3.7 -- 3.7 3.7
Ogle House..................................................... 2.5 -- 2.5 2.5
Insurance Proceeds............................................. 2.5 1.3 1.2 1.2
Notes Receivable from Roski/Yakama............................. 14.7 -- 14.7 14.7
Interim Cash Flow.............................................. 40.8 -- 40.8 40.8
Present Value of NOLs.......................................... 10.7 -- 10.7 10.7
------- ------- --------- ----------
Excess Asset Value, Subtotal................................ 414.0 72.5 341.5 341.5
Belterra Project....................................................................... -- (163.9)
Race Track Tax Liability............................................................... (22.9) (22.9)
Accrued Interest....................................................................... (26.1) (26.1)
Cage Cash.............................................................................. (30.0) (30.0)
Call 13% First Mortgage Notes @ 106.5.................................................. (122.5) (122.5)
---------- ----------
Pro Forma PNK Cash Balance + Excess Asset Value, 12/31/99............................. $ 386.7 $ 222.9
========== ========
</TABLE>
------------------------------------------------------------------------------
DRAFT -11-
<PAGE>
Overview of Company
-------------------------------------------------------------------------------
Pro Forma Capitalization
($ in Millions)
-- The Company is levered at 5.0x Long-term Debt/1999 Pro Forma EBITDA
(3.5x taking into consideration prospective EBITDA at Belterra)
-- On a net basis, however, the Company's leverage is only 1.2x (1.9x
taking into consideration prospective EBITDA at Belterra and remaining
cost to complete)
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
At December 31, 1999
--------------------------
$ %
----------- ---------
<S> <C> <C>
Cash + Excess Asset Value (Uncompleted Belterra)............................. $ 386.7 48.7%
=========== =========
Cash + Excess Asset Value (Completed Belterra)............................... $ 222.9 28.0%
=========== =========
Long-Term Debt/(1)/
--------------
Revolving Credit Facility.................................................... $ -- 0.0%
9 1/4% Senior Sub. Notes due 2007............................................ 350.0 44.0%
9 1/2% Senior Sub. Notes due 2007............................................ 125.0 15.7%
Hollywood Park-Casino Debt................................................... 22.6 2.8%
Other Notes Payable.......................................................... 8.1 1.0%
----------- ---------
Total Long-Term Debt..................................................... $ 505.7 63.6%
Common Equity................................................................ 280.9 35.3
----------- ---------
Total Capitalization..................................................... $ 794.6 100.0%
=========== =========
</TABLE>
-------------------------
(1) Pro forma for the redemption of the 13% First Mortgage Notes due 2003.
------------------------------------------------------------------------------
DRAFT -12-
<PAGE>
Overview of Company
------------------------------------------------------------------------------
Stock Price Performance
-- The Company's stock has been steadily rising since January 1999,
gaining over 130% up to March 7, the pre-offer announcement date
-- The Offer is at a level that the Company's stock has not been at since
early 1994
January 1, 1997 to March 7, 2000
[Stock chart from 1/1/97 to 3/7/00 showing closing
price and trading volume of Pinnacle stock]
DRAFT -13-
<PAGE>
Overview of Company
--------------------------------------------------------------------------------
Stock Price Trading Range
-- Since January 1, 1997, nearly all of the trading volume of the
Company's stock has been at or below the $20 per share level
January 1, 1997 - March 7, 2000
-------------------------------
-------------------------------
Price Total Volume
------- --------------
8.0 1,896,200
9.0 2,651,400
10.0 3,557,900
11.0 4,953,500
12.0 6,289,200
13.0 6,828,000
14.0 8,186,000
15.0 5,789,300
16.0 7,505,600
17.0 11,054,800
18.0 7,809,500
19.0 7,318,400
20.0 4,630,400
21.0 1,824,400
22.0 994,200
23.0 78,700
===============================
_______________
Source: FactSet Research Systems Inc. From January 1, 1997 through March 7,
2000.
DRAFT -14-
<PAGE>
Overview of the Company
================================================================================
Stock Price Performance Against Comparable Companies
-- The market has discounted the valuation of Pinnacle and other similar
small cap gaming companies as demonstrated by their underperformance
relative to the overall market
[Chart of relative price performance of NASDAQ, S&P500, Pinnacle and comparable
gaming companies/(1)/ from 1/1/97 to 3/7/00]
______________
(1) Gaming Comps include ASCA, AGY, BYD, HWD, ISLE, PENN, and STN.
Source: FactSet Research Systems Inc.
DRAFT -15-
<PAGE>
--------------------------------------------------------------------------------
TRANSACTION OVERVIEW
--------------------------------------------------------------------------------
DRAFT -16-
<PAGE>
Transaction Overview
--------------------------------------------------------------------------------
Valuation
($ in Millions, Except per Share Data)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------
Exchange.................................... NYSE
52-Week High/Low............................ $24.06/$8.50
Offer Mailed Current Offer
(3/7/00) (3/21/00) Price
------------ ---------- -----------
<S> <C> <C> <C>
Closing Price................................ $ 19.25 $ 20.25 $ 25.00
Market Capitalization........................ $ 505.6 $ 531.8 $ 656.6
Plus: Total Long-Term Debt/(1)/............. 505.7 505.7 505.7
Plus: Net Option Value...................... 17.1 19.7 32.2
Less: Excess Cash/Assets.................... (386.7) 386.7) (386.7)
--------- -------- ---------
Total Enterprise Value ("TEV")........... $ 641.6 $ 670.5 $ 807.7
========= ======== =========
Operating Information
---------------------
Pro Forma EBITDA/(2)/........................ $ 101.3 $ 101.3 $ 101.3
Adjusted Reported Earnings per Share/(3)/.... $ 0.98 $ 0.98 $ 0.98
Valuation Multiples
-------------------
TEV / EBITDA................................. 6.6x 6.6x 8.0x
Price / Earnings............................. 19.6x 20.7x 25.5x
================================================================================================
</TABLE>
___________________
(1) Pro forma for the redemption of the 13% First Mortgage Notes due 2003.
(2) Pro forma for recent and pending divestitures.
(3) Excludes $42.1 million gain on sale of the Hollywood Park Race Track and
Casino
DRAFT -17-
<PAGE>
Transaction Overview
--------------------------------------------------------------------------------
Financing Structure
($ in Millions)
-- Based on discussions with Colony, the proposed financing structure is as
follows:
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
Sources of Funds Uses of Funds
------------------------------------------------------------- --------------------------------------------------------------
<S> <C> <C> <C>
Bank/Existing/Assumed Debt....................... $ 855.0 Purchase Pinnacle Equity @ $25.00.......... $ 688.8
High Yield Debt.................................. 550.0 Repay Pinnacle Debt........................ 505.7
Pinnacle Equity Roll-Over........................ 50.0 Repay Harveys Debt......................... 400.0
Cash............................................. 223.8 Fees and Expenses.......................... 84.3
--------- -------------
Total Sources of Funds.................. $ 1,678.8 Total Uses of Funds............... $ 1,678.8
========= =============
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>
DRAFT -18-
<PAGE>
Transaction Overview
--------------------------------------------------------------------------------
Termination Fee
-- Amount of termination fee not yet proposed - customary termination
fees outlined below
M&A Transactions > $100 Million Since 1/1/98
--------------------------------------------
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
Fee as a Percentage of
Transaction Value/(1)/
----------------------------------------------------------
Transaction Value Average Standard Deviation
-------------------------------------------------------------- ----------------------------------------------------------
<S> <C> <C>
Less than $200 million 3.59% +1.70%
-
$200 - $500 million 2.96% +1.17%
-
$500 - $1,000 million 2.82% +1.04%
-
$1,000 - $1,500 million 2.73% +0.77%
-
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
----------------
Source: Securities Data Corporation (SDC)
(1) Transaction value is defined by SDC as reported deal value, which includes
the amount paid for all common stock, common stock equivalents, preferred
stock, debt, options, assets, warrants and stock purchases made within six
months of the announcement date of the transaction.
DRAFT -19-
<PAGE>
Transaction Overview
--------------------------------------------------------------------------------
Financing for the Offer
-- The high yield market in 1999 and year-to-date 2000 has demonstrated
some weakness
__ High yield issuance in 1999 declined 30% from 1998
__ Intermediate interest rates have increased 35% to 40% over the last
year
__ Capital has been exiting the high yield market recently
[Chart of 5-year, 10-year, and 30-year
Treasury rates from 1987 to 2000]
High Yield Fund Flows
---------------------
<TABLE>
<CAPTION>
------------------------------------------------------------
Amount
Week Ending ($ in Millions)
------------------------------------ ---------------------
<S> <C>
February 23, 2000................... $ (121.3)
February 16......................... (154.0)
February 9.......................... 118.0
February 2.......................... (66.3)
-----------
Last 4 Weeks........................ $ (225.4)
-----------
2000 Year to Date................... $ (1,295.2)
===========
1999................................ $ (108.8)
1998................................ $ 11,524.8
1997................................ $ 16,083.3
1996................................ $ 11,895.7
------------------------------------------------------------
</TABLE>
DRAFT -20-
<PAGE>
Transaction Overview
--------------------------------------------------------------------------------
Management Interests
($ in Millions)
-- Colony will require management to roll the equivalent value of 2
million shares at $25.00 per share ($50 million)
-- Management's roll-over represents approximately 55% of their value in
this transaction and 7% of the equity value ?
<TABLE>
<CAPTION>
---------------------------------------------------------------------
Management Held At $25.00 per Share
------------------------------------ ------------------------------
<S> <C> <C>
Share Value......................... $ 73.6 81.1%
Net Options Value................... 17.1 18.9
---------- ----------
Total Equity Value............. 90.7 100.0
Rollover Amount..................... 50.0 55.1
Cash-Out Amount..................... 40.7 44.9
Outstanding At $25.00 per share
------------------------------------ ------------------------------
Share Value......................... $ 656.6 95.3%
Net Options Value................... 32.2 4.7
---------- ----------
Total Equity Value............. 688.8 100.0
Rollover Amount..................... 50.0 7.3
---------------------------------------------------------------------
</TABLE>
-- Management contracts to be negotiated
DRAFT -21-
<PAGE>
------------------------------------------------------------------------------
Valuation Analysis
------------------------------------------------------------------------------
DRAFT -22-
<PAGE>
Valuation Analysis
------------------------------------------------------------------------------
Overview - Valuation Benchmarks
-- Comparison of stock premiums paid in recent merger and acquisition
transactions
-- Comparable equity trading
-- Comparable merger and acquisition transaction analysis
-- Discounted cash flow analysis
DRAFT -23-
<PAGE>
<TABLE>
<CAPTION>
Premiums Paid Analysis
-----------------------------------------------------------------------------------------------------------------------------------
Premium to Historical Closing Prices
December 7, 2000 to March 7, 2000
---------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7-Dec-99 8-Dec-99 9-Dec-99 10-Dec-99 13-Dec-99 14-Dec-99 15-Dec-99 16-Dec-99 17-Dec-99 20-Dec-99
22.00% 19.80% 13.60% 14.30% 16.60% 17.60% 17.30% 22.70% 23.50% 25.80%
21-Dec-99 22-Dec-99 23-Dec-99 27-Dec-99 28-Dec-99 29-Dec-99 30-Dec-99 31-Dec-99 3-Jan-00 4-Jan-00
21.60% 22.30% 18.70% 15.90% 14.00% 9.90% 8.10% 11.40% 13.60% 18.30%
5-Jan-00 6-Jan-00 7-Jan-00 10-Jan-00 11-Jan-00 12-Jan-00 13-Jan-00 14-Jan-00 18-Jan-00 19-Jan-00
22.70% 28.60% 21.60% 17.60% 18.30% 22.00% 22.70% 23.50% 23.10% 20.50%
20-Jan-00 21-Jan-00 24-Jan-00 25-Jan-00 26-Jan-00 27-Jan-00 28-Jan-00 31-Jan-00 1-Feb-00 2-Feb-00
20.50% 6.40% 17.60% 19.80% 19.40% 20.80% 25.40% 27.40% 23.50% 25.80%
3-Feb-00 4-Feb-00 7-Feb-00 8-Feb-00 9-Feb-00 10-Feb-00 11-Feb-00 14-Feb-00 15-Feb-00 16-Feb-00
26.20% 26.60% 20.50% 23.50% 29.40% 38.90% 50.40% 48.70% 48.10% 42.30%
17-Feb-00 18-Feb-00 22-Feb-00 23-Feb-00 24-Feb-00 25-Feb-00 28-Feb-00 29-Feb-00 1-Mar-00 2-Mar-00
43.90% 49.30% 41.30% 43.90% 44.40% 42.30% 41.80% 44.90% 50.40% 49.30%
3-Mar-00 6-Mar-00 7-Mar-00
47.10% 44.90% 29.90%
</TABLE>
DRAFT -24-
<PAGE>
Premiums Paid Analysis
================================================================================
Premium Comparison
-- The proposed purchase price of $25 per share represents an
approximate 36.6% premium (an average of the one day, one week, and
four week) premium to recent Pinnacle trading prices, which is
comparable to premiums paid in public transactions completed since
January 1997
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Period Prior to March 8, 2000
--------------------------------------
One Day One Week Four Week
---------- ---------- -----------
<S> <C> <C> <C>
Pinnacle price per share during period.............................................. $ 19.25 $ 16.63 $ 19.31
Proposed purchase price per share................................................... 25.00 25.00 25.00
--------- --------- ---------
Purchase premium - Pinnacle......................................................... 29.9% 50.4% 29.4%
Average premium paid in other public transactions(1)(2)(3)
-------------------------
All offers....................................................................... 24.7% 30.4% 37.0%
All cash offers.................................................................. 24.4% 30.3% 36.5%
Average premium paid in selected gaming transactions(4)
----------------------------
All offers....................................................................... 36.8% 40.7% 38.7%
All cash offers.................................................................. 36.8% 40.7% 38.7%
</TABLE>
-----------------------
(1) Source: Securities Data Company.
(2) All public transactions announced and completed from January 1, 1997 to
February 25, 2000 with transaction value of $100 million to $1,500 million.
(3) Trimmed average, which excludes top 10% and bottom 10% of premiums paid.
(4) Public filings and Jefferies research.
DRAFT -25-
<PAGE>
Comparable Equity Trading Analysis
================================================================================
SELECTED COMPARABLE PUBLIC COMPANIES
-- Criteria for selecting comparable public companies
-- Mid-cap gaming company
-- Multiple properties
-- Riverboat/dockside operations
-- Non-distressed
-- Not currently a target of a merger and acquisition transaction
-- Selected comparable public companies
-- Ameristar Casinos
-- Argosy Gaming
-- Boyd Gaming
-- Hollywood Casinos
-- Isle of Capri Casinos
-- Penn National Gaming
-- Station Casinos
DRAFT -26-
<PAGE>
Comparable Equity Trading Analysis
================================================================================
Comparable Public Company Trading Multiples
-- The following multiples of total enterprise value were chosen for
comparison on a historical and forward basis
<TABLE>
<CAPTION>
----------------------------------------------------------------------
Historical Forward
------------ -----------
<S> <C> <C>
Total Enterprise Value to
Net Revenues
High............................. 1.9x 1.7x
Low.............................. 1.0x 0.9x
Average.......................... 1.3x 1.2x
PNK Acquisition Multiple......... 1.8x 1.5x
EBITDA
High............................. 8.0x 7.0x
Low.............................. 4.8x 3.9x
Average.......................... 6.4x 5.4x
PNK Acquisition Multiple......... 8.0x 6.3x
=======================================================================
</TABLE>
DRAFT -27-
<PAGE>
<TABLE>
<CAPTION>
Comparable Equity Trading Analysis
===================================================================================================================================
Comparable Public Company Trading Multiples (cont'd)
-- The following multiples of price were chosen for comparison on a current and forward basis:
-------------------------------------------------------------------------------------------------
2000E 2001E
------- -------
<S> <C> <C>
Price to
Earnings per Share
High......................................... 13.6x 12.1x
Low.......................................... 6.5x 5.9x
Average...................................... 10.2x 8.6x
PNK Acquisition Multiple..................... 25.0x 17.9x
=================================================================================================
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------
Current
---------
<S> <C>
Price to
Book Value per Share
High......................................... 6.8x
Low.......................................... (4.9x)
Average...................................... 1.7x
PNK Acquisition Multiple..................... 2.3x
==============================================================================
</TABLE>
DRAFT -28-
<PAGE>
Comparable M&A Transaction Analysis
===============================================================================
Selected Comparable M&A Transactions
-- Criteria for selecting comparable merger and acquisition
transactions
-- Announced since January 1, 1997
-- Multiple properties
-- Riverboat/dockside operations
-- Selected comparable public companies
-- Penn National Gaming's pending acquisition of Pinnacle's
Boomtown Biloxi and Casino Magic Bay St. Louis properties
-- Isle of Capri Casinos' acquisition of Lady Luck Gaming
-- Harrahs Entertainment's acquisition of Players
International
-- Horseshoe Gaming's acquisition of Empress Entertainment
-- Park Place Entertainment's acquisition of Grand Casinos
-- Pinnacle's acquisition of Casino Magic
-- Colony's acquisition of Harveys Casino Resorts
DRAFT -29-
<PAGE>
<TABLE>
<CAPTION>
Comparable M&A Transaction Analysis
===================================================================================================================================
Comparable M&A Transaction Multiples
-- The following multiples were chosen for comparison on a raw and adjusted basis
-----------------------------------------------------------------------------------------------------------------------------------
Raw Material Adjusted Multiple
----------------------------- -----------------------------
Revenue EBITDA Revenue EBITDA
------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
High................................................... 1.6x 7.1x 1.5x 6.3x
Low.................................................... 1.2x 5.5x 1.1x 5.1x
Average................................................ 1.4x 6.3x 1.3x 5.6x
PNK Acquisition Multiple............................... 1.8x 8.0x 1.6x 6.4x
===================================================================================================================================
</TABLE>
-- The only other comparable merger and acquisition transaction is
Harrahs Entertainment's acquisition of Showboat in 1997
-- At the time it appeared that the multiple of EBITDA was in excess
of 10.0x
-- Retrospectively, after the ramp-up of cash flow and divestitures
of certain assets, among other things, it seems that the multiple
of EBITDA was approximately 6.0x
DRAFT -30-
<PAGE>
Discounted Cash Flow Analysis
===============================================================================
Overview of Calculation
-- Discounting Pinnacle's projected distributable cash flows to arrive at a
present value provides an indication of value
-- Distributed cash flow is calculated as follows: net income for the next five
years plus projected depreciation, amortization and other non-cash expenses
minus projected capital expenditures plus net changes in working capital
plus interest expense, net of the interest tax shield
-- In order to calculate Pinnacle's distributable cash flows, the discounted
cash flow analysis utilized projections that were derived from management's
budget for 2000 and discussion with management regarding the long-term
outlook for the Company's properties
-- The terminal value (the value of distributable cash flows beyond five years)
was calculated by capitalizing year five distributable cash flow using
growth rates ranging from 2.0% to 3.0%
-- Considers long-term inflation and internal growth
-- Considers comparable company forward EBITDA multiples
-- The cash flows for the five years and the terminal value were discounted to
their present values at a weighted average cost of capital (derived from the
capital asset pricing model) in a range from 12.0% to 13.0% to determine an
indication of equity value
-- Considers required rates of return on equity
-- Considers cost of debt and amount of leverage
DRAFT -31-
<PAGE>
Discounted Cash Flow Analysis
===============================================================================
Range of Value
($ in Millions)
-- The following equity values per share were arrived and based on a
discounted cash flow analysis
<TABLE>
<CAPTION>
Equity Value Per Share
----------------------------------------------------------------------------------------------------------------------------
Weighted Average Cost of Perpetual Growth Rate
--------------------------------------------------------------------------
Capital ("WACC") 2.0% 2.5% 3.0%
------------------------------------------- ------------------- -------------------- --------------------------
<S> <C> <C> <C>
13.0% $ 22.89 $ 24.12 $ 25.46
12.5% 24.66 26.03 27.54
12.0% 26.60 28.14 29.85
============================================================================================================================
</TABLE>
DRAFT -32-
<PAGE>
<TABLE>
<CAPTION>
Summary of Valuation Benchmarks
===================================================================================================================================
($ in Millions)
-----------------------------------------------------------------------------------------------------------------------------------
Prior to Announcement
------------------------------------------------------
Premiums Paid Analysis (Cash Offers): 1 Day Prior 1 Week 4 Weeks
------------------------------------ ---------------- --------------- -----------------
<S> <C> <C> <C>
Average of All (Since 1/1/97)................................... 24.7% 30.4% 37.0%
Average of Selected Gaming (Since 1/1/98)....................... 36.8% 40.7% 38.7%
Pinnacle Offer Price............................................ 29.9% 50.4% 29.4%
-----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
Equity Value Per Share
------------------------------------
Projected Cash Flow Analyses: Low Middle High
---------------------------- ----------- --------- -----------
<S> <C> <C> <C>
Discounted Cash Flow Analysis....................................................... $22.89 $26.03 $29.85
PNK Offer Price..................................................................... $25.00
===================================================================================================================================
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
Comparable Analyses (EBITDA Multiples): Equity Trading M&A Transactions
-------------------------------------- --------------------- ----------------------
<S> <C> <C>
Historical Average / Raw Average............................... 6.4x 6.3x
PNK Offer Price Historical / Raw............................... 8.0x 8.0x
Forward Average / Adjusted Average............................. 5.4x 5.6x
PNK Offer Price Forward / Adjusted............................. 6.3x 6.4x
===================================================================================================================================
</TABLE>
DRAFT -33-
<PAGE>
--------------------------------------------------------------------------------
EXHIBITS
--------------------------------------------------------------------------------
DRAFT -34-
<PAGE>
--------------------------------------------------------------------------------
EXHIBIT A
--------------------------------------------------------------------------------
DRAFT -35-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Target Termination Fee Analysis
Completed Merger Transactions > $100 Million with Target Termination Fees - For
the Period of 1/1/1998-2/25/2000 (Sorted by Transaction value)
($ in Millions)
<TABLE>
<CAPTION>
Fee as a % of
Date Date Transaction Termination Transaction
Announced Effective Acquiror Name Target Name Value Fee Value
---------- ---------- --------------------------- ------------------------------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
12/01/1998 11/30/1999 Exxon Corp Mobil Corp $78,945.8 1,500.0 1.90%
01/18/1999 06/30/1999 Vodafone Group PLC AirTouch Communications 60,286.9 225.0 0.37%
06/24/1998 03/09/1999 AT&T Corp Tele-Communications Inc 53,592.5 1,750.0 3.27%
08/11/1998 12/31/1998 British Petroleum Co PLC{BP} Amoco Corp 48,174.1 950.0 1.97%
06/19/1998 12/21/1998 Berkshire Hathaway Inc General Re Corp 22,337.9 400.0 1.79%
01/13/1999 06/24/1999 Lucent Technologies Inc Ascend Communications Inc 21,423.0 525.0 2.45%
08/20/1998 01/01/1999 American International Group SunAmerica Inc 18,117.0 500.0 2.76%
06/07/1999 12/02/1999 AlliedSignal Inc Honeywell Inc 15,601.2 350.0 2.24%
03/17/1998 10/01/1998 Washington Mutual, Seattle,WA HF Ahmanson & Co, Irwindale, CA 14,725.0 85.0 0.58%
10/18/1998 01/12/1999 McKesson Corp HBO & Co 14,319.7 200.0 1.40%
03/11/1998 07/16/1998 USA Waste Services Inc Waste Management Inc 13,313.6 183.0 1.37%
10/19/1998 05/27/1999 Kroger Co Fred Meyer Inc 12,890.4 55.0 0.43%
12/07/1998 11/30/1999 Scottish Power PLC PacifiCorp 12,599.6 10.0 0.08%
08/03/1998 06/24/1999 Albertson's Inc American Stores Co 11,864.6 177.0 1.49%
09/15/1999 01/05/2000 Motorola Inc General Instrument Corp 10,935.5 300.0 2.74%
02/18/1999 07/21/1999 Aegon NV TransAmerica Corp 10,790.7 300.0 2.78%
11/23/1998 04/05/1999 Tyco International Ltd AMP Inc 10,735.6 300.0 2.79%
06/15/1998 08/31/1998 Nortel Networks Corp Bay Networks Inc 9,268.6 275.0 2.97%
01/26/1998 06/11/1998 Compaq Computer Corp Digital Equipment Corp 9,123.7 240.0 2.63%
03/05/1999 08/02/1999 Allied Waste Industries Inc Browning-Ferris Industries Inc 9,053.7 225.0 2.49%
05/27/1999 12/07/1999 Infinity Broadcasting Corp Outdoor Systems Inc 8,466.7 300.0 3.54%
02/26/1998 09/30/1998 Halliburton Co Dresser Industries Inc 7,783.2 175.0 2.25%
11/24/1998 04/30/1999 International Paper Co Union Camp Corp 7,472.2 150.0 2.01%
10/07/1998 05/04/1999 Clear Channel Communications Jacor Communications Inc 6,603.1 115.0 1.74%
02/22/1999 01/28/2000 Dominion Resources Inc Consolidated Natural Gas Co 6,482.1 200.0 3.09%
06/15/1998 11/10/1998 Teleglobe Inc Excel Communications Inc 6,407.2 120.0 1.87%
10/21/1998 03/24/1999 Newell Rubbermaid Inc Rubbermaid Inc 6,329.6 140.0 2.21%
05/31/1999 10/01/1999 AmSouth Bancorp, Alabama First American Corp, Tennessee 6,328.2 225.0 3.56%
03/22/1999 04/30/1999 Vivendi SA United States Filter Corp 6,317.8 220.0 3.48%
</TABLE>
DRAFT -1-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Target Termination Fee Analysis
Completed Merger Transactions > $100 Million with Target Termination Fees - For
the Period of 1/1/1998-2/25/2000 (Sorted by Transaction value)
($ in Millions)
<TABLE>
<CAPTION>
Fee as a % of
Date Date Transaction Termination Transaction
Announced Effective Acquiror Name Target Name Value Fee Value
---------- ---------- --------------------------- ------------------------------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
05/17/1999 11/12/1999 New Holland(New Holland Hldg) Case Corp 6,236.3 20.0 0.32%
03/15/1999 10/25/1999 El Paso Energy Corp Sonat Inc 5,962.7 150.0 2.52%
01/19/1999 05/28/1999 At Home Corp Excite Inc 5,949.8 200.0 3.36%
01/05/1998 10/26/1998 SBC Communications Inc Southern New England Telecomm 5,828.3 125.0 2.14%
06/18/1998 07/28/1998 Lyondell Petrochemical(ARCO) ARCO Chemical Co(ARCO) 5,645.7 140.0 2.48%
05/17/1999 07/30/1999 General Dynamics Corp Gulfstream Aerospace Corp 5,419.7 150.0 2.77%
10/09/1998 02/03/1999 Cardinal Health Inc Allegiance Corp 5,356.0 155.0 2.89%
02/01/1999 06/21/1999 Rohm and Haas Co Morton International Inc 5,075.7 140.0 2.76%
07/21/1999 10/06/1999 Johnson & Johnson Centocor Inc 4,325.2 125.0 2.89%
11/23/1998 06/30/1999 UNUM Corp Provident Cos 4,866.5 150.0 3.08%
06/03/1999 06/16/1999 Roche Holding AG Genentech Inc 4,818.4 60.0 1.25%
04/01/1999 07/20/1999 Yahoo! Inc Broadcast.Com Inc 4,732.7 135.0 2.85%
06/04/1998 09/08/1998 Alcatel Alsthom CGE DSC Communications Corp 4,685.3 120.0 2.56%
01/27/1999 05/28/1999 Yahoo! Inc GeoCities 4,659.9 100.0 2.15%
02/22/1999 06/11/1999 United Technologies Corp Sundstrand Corp 4,408.3 160.0 3.63%
03/09/1998 06/05/1998 Qwest Communications Corp LCI International Inc 4,401.4 133.0 3.02%
04/26/1999 06/30/1999 GEC PLC FORE Systems Inc 4,189.7 135.0 3.22%
05/04/1998 07/09/1998 Dana Corp Echlin Inc 4,124.8 87.5 2.12%
06/25/1999 11/10/1999 Suez Lyonnaise des Eaux SA Nalco Chemical Co 4,062.7 125.0 3.08%
05/12/1999 08/12/1999 Cox Communications Inc TCA Cable TV Inc 3,986.3 92.5 2.32%
08/12/1998 03/12/1999 CalEnergy Co Inc MidAmerican Energy Holdings Co 3,975.1 35.0 0.88%
01/19/1998 04/24/1998 St Paul Cos Inc USF&G Corp 3,782.2 70.0 1.85%
09/07/1999 12/01/1999 Hilton Hotels Corp Promus Hotel Corp 3,642.7 75.0 2.06%
09/09/1999 11/23/1999 Illinois Tool Works Inc Premark International Inc 3,619.6 75.0 2.07%
11/02/1998 01/27/1999 Medtronic Inc Sofamor Danek Group Inc 3,603.2 105.0 2.91%
12/11/1998 05/13/1999 Mattel Inc Learning Co Inc 3,532.4 35.0 0.99%
05/19/1999 08/25/1999 Tyco International Ltd Raychem Corp 3,527.6 100.0 2.83%
05/25/1998 10/01/1998 Tyco International Ltd US Surgical Corp 3,394.2 125.0 3.68%
06/19/1998 08/31/1998 Schlumberger Technology Corp Camco International Inc 3,376.3 90.0 2.67%
</TABLE>
DRAFT -2-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Target Termination Fee Analysis
Completed Merger Transactions > $100 Million with Target Termination Fees - For
the Period of 1/1/1998-2/25/2000 (Sorted by Transaction value)
($ in Millions)
<TABLE>
<CAPTION>
Fee as a % of
Date Date Transaction Termination Transaction
Announced Effective Acquiror Name Target Name Value Fee Value
---------- ---------- --------------------------- ------------------------------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
07/03/1998 09/18/1998 Proffitt's Inc Saks Holdings 3,282.3 80.0 2.44%
07/12/1999 12/31/1999 Transocean Offshore Inc Sedco Forex Offshore 3,160.0 100.0 3.16%
10/15/1998 02/26/1999 Kerr-McGee Corp Oryx Energy Co 3,140.9 60.0 1.91%
07/30/1998 10/15/1998 Hercules Inc BetzDearborn Inc 3,090.3 76.0 2.46%
05/18/1998 08/26/1998 Office Depot Inc Viking Office Products Inc 3,082.2 30.0 0.97%
05/18/1998 08/19/1998 Dillard's Inc Mercantile Stores Co Inc 2,943.1 88.3 3.00%
02/10/1998 06/04/1998 Canadian National Railway Co Illinois Central Corp 2,931.0 72.0 2.46%
07/12/1999 10/08/1999 Quebecor Printing Inc World Color Press Inc 2,913.1 10.6 0.36%
01/05/1998 07/17/1998 Meditrust Acquisition Co La Quinta Inns Inc 2,907.5 75.0 2.58%
03/08/1999 08/18/1999 Fortis AG American Bankers Ins Group Inc 2,823.5 85.0 3.01%
08/16/1999 10/27/1999 Verenigd Bezit VNU{VNU} Nielsen Media Research Inc 2,787.7 70.0 2.51%
11/04/1999 02/04/2000 JDS Uniphase Corp Optical Coating Laboratory Inc 2,765.6 85.0 3.07%
05/19/1998 10/28/1998 Koninklijke Ahold NV Giant Food Inc 2,633.5 10.0 0.38%
04/01/1999 11/15/1999 CBS Corp King World Productions Inc 2,590.2 90.0 3.47%
05/18/1998 08/07/1998 Cardinal Health Inc RP Scherer Corp 2,541.6 75.0 2.95%
06/10/1998 09/25/1998 Health Care and Retirement Manor Care Inc 2,474.4 100.0 4.04%
05/20/1999 08/17/1999 Devon Energy Corp PennzEnergy Co 2,415.9 22.0 0.91%
07/20/1998 10/06/1998 SPX Corp General Signal Corp 2,318.7 60.0 2.59%
03/04/1999 08/10/1999 Intel Corp Level One Communications Inc 2,272.7 3.0 0.13%
07/13/1999 09/16/1999 Buhrmann NV Corporate Express Inc 2,266.9 40.0 1.76%
05/11/1998 11/18/1998 Jefferson Smurfit Corp Stone Container Corp 2,229.6 60.0 2.69%
01/26/1999 05/17/1999 Warner-Lambert Co Agouron Pharmaceuticals Inc 2,196.2 60.0 2.73%
10/19/1998 01/29/1999 Clorox Co First Brands Corp 2,027.2 52.0 2.57%
08/20/1999 12/02/1999 Phelps Dodge Corp Cyprus Amax Minerals Co 1,990.5 45.0 2.26%
07/08/1998 10/20/1998 Equity Residential Pptys Trust Merry Land & Investment Co Inc 1,986.4 45.0 2.27%
06/01/1999 09/01/1999 Crompton & Knowles Corp Witco Corp 1,957.9 30.0 1.53%
06/01/1999 01/13/2000 E*Trade Group Inc TeleBanc Financial Corp,VA 1,940.5 54.0 2.78%
09/13/1999 12/01/1999 Solectron Corporation Smart Modular Technologies Inc 1,937.6 60.0 3.10%
02/20/1998 05/29/1998 Capstar Broadcasting Partners SFX Broadcasting Inc 1,927.3 50.0 2.59%
</TABLE>
DRAFT -3-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Target Termination Fee Analysis
Completed Merger Transactions > $100 Million with Target Termination Fees - For
the Period of 1/1/1998-2/25/2000 (Sorted by Transaction value)
($ in Millions)
<TABLE>
<CAPTION>
Fee as a % of
Date Date Transaction Termination Transaction
Announced Effective Acquiror Name Target Name Value Fee Value
---------- ---------- --------------------------- ------------------------------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
11/23/1998 07/12/1999 BF Goodrich Co Coltec Industries Inc 1,906.8 45.0 2.36%
08/27/1998 10/13/1998 Framatome Connectors Intl Berg Electronics Corp 1,877.0 65.0 3.46%
10/13/1998 11/20/1998 Safeway Inc Dominick's Supermarkets Inc 1,854.5 3.6 0.19%
03/09/1998 06/03/1998 Bay Apartment Communites Inc Avalon Properties Inc 1,847.4 10.0 0.54%
06/14/1999 07/26/1999 Stagecoach Holdings PLC Coach USA Inc 1,835.6 35.0 1.91%
03/02/1999 04/30/1999 Alcatel SA XYLAN Corp 1,822.5 54.0 2.96%
07/27/1998 11/30/1998 Swiss Reinsurance Co Life Re Corp 1,794.7 60.0 3.34%
09/30/1999 01/14/2000 CMGI Inc FlyCast Communications 1,785.6 20.0 1.12%
07/23/1999 09/14/1999 Safeway Inc Randall's Food Markets Inc 1,774.5 45.0 2.54%
12/15/1998 03/30/1999 Quintiles Transnational Corp Envoy Corp 1,772.6 50.0 2.82%
09/28/1999 01/24/2000 Alcatel SA Genesys Telecommun Labs 1,771.7 45.0 2.54%
05/28/1998 09/14/1998 Cable & Wireless PLC MCI Communications Corp-Whl 1,750.0 25.0 1.43%
11/14/1999 01/28/2000 Corning Inc Oak Industries Inc 1,732.3 50.0 2.89%
04/03/1998 10/01/1998 Astoria Finl,Lake Success,NY Long Island Bancorp,NY 1,731.9 60.0 3.46%
05/14/1998 09/25/1998 Excel Realty Trust Inc New Plan Realty Trust 1,715.3 32.5 1.89%
10/14/1999 11/20/1999 Intel Corp DSP Communications Inc 1,708.7 45.0 2.63%
12/14/1998 05/20/1999 Hughes Electronics Corp US Satellite Broadcasting Inc 1,693.0 50.0 2.95%
12/13/1998 03/24/1999 Kensington Acquisition Sub Inc Cellular Communications Intl 1,687.9 43.0 2.55%
04/02/1998 06/30/1998 Security Capital Pacific Trust Security Capital Atlantic Inc 1,681.4 25.0 1.49%
03/01/1999 07/06/1999 Duke Realty Investments Inc Weeks Corp 1,674.7 50.0 2.99%
02/01/1999 04/09/1999 Eaton Corp Aeroquip-Vickers Inc 1,633.9 57.5 3.52%
06/16/1999 11/04/1999 Starwood Financial Trust TriNet Corporate Realty Trust 1,629.2 50.0 3.07%
06/28/1999 07/30/1999 Atlas Copco North America Inc Rental Service Corp 1,614.6 20.0 1.24%
10/05/1998 05/03/1999 AT&T Corp Vanguard Cellular Systems Inc 1,563.4 52.5 3.36%
03/02/1999 06/15/1999 Jones Apparel Group Inc Nine West Group Inc 1,546.3 35.0 2.26%
02/11/1999 03/22/1999 Federated Department Stores Fingerhut Cos Inc 1,544.1 40.0 2.59%
06/09/1999 08/31/1999 SuperValu Inc Richfood Holdings Inc 1,528.3 27.0 1.77%
07/02/1998 01/08/1999 Investor Group Centennial Cellular Corp 1,509.7 40.0 2.65%
05/04/1999 06/24/1999 Getronics NV Wang Laboratories Inc 1,490.2 65.0 4.36%
</TABLE>
DRAFT -4-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Target Termination Fee Analysis
Completed Merger Transactions > $100 Million with Target Termination Fees - For
the Period of 1/1/1998-2/25/2000 (Sorted by Transaction value)
($ in Millions)
<TABLE>
<CAPTION>
Fee as a % of
Date Date Transaction Termination Transaction
Announced Effective Acquiror Name Target Name Value Fee Value
---------- ---------- --------------------------- ------------------------------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
02/09/1998 06/15/1998 United States Filter Corp Culligan Water Technologies 1,474.3 47.0 3.19%
01/20/1998 05/27/1998 Investor Group Regal Cinemas Inc 1,462.7 28.0 1.91%
11/17/1998 03/30/1999 Prologis Trust Meridian Industrial Trust Inc 1,456.8 40.0 2.75%
05/17/1999 07/23/1999 Synetic Inc Medical Manager Corp 1,411.3 5.0 0.35%
08/09/1999 10/12/1999 EMC Corp Data General Corp 1,410.4 44.6 3.16%
12/18/1998 07/02/1999 ALLTEL Corp Aliant Communications Inc 1,397.3 30.0 2.15%
07/12/1999 11/16/1999 Royal & Sun Alliance Insurance Orion Capital Corp 1,390.6 45.0 3.24%
05/21/1999 09/30/1999 AK Steel Holding Corp Armco Inc 1,390.3 30.0 2.16%
01/11/1999 04/26/1999 Bergen Brunswig Corp PharMerica Inc 1,385.0 38.0 2.74%
09/15/1999 01/07/2000 Microsoft Corp Visio Corp 1,374.9 30.0 2.18%
09/28/1999 12/10/1999 Chase Manhattan Corp,NY Hambrecht & Quist Group Inc 1,368.0 57.5 4.20%
07/19/1999 01/06/2000 AirTouch Cellular CommNet Cellular Inc 1,349.8 35.0 2.59%
11/20/1998 10/19/1999 AES Corp CILCORP Inc 1,332.7 26.6 1.99%
04/21/1998 06/24/1998 GEC PLC Tracor Inc 1,323.5 40.0 3.02%
08/17/1998 12/31/1998 Waste Management Inc Eastern Environmental Services 1,276.2 35.0 2.74%
03/16/1998 08/03/1998 CapStar Hotel Co American General Hospitality 1,211.8 35.0 2.89%
02/16/1999 06/18/1999 XL Capital Ltd NAC Re Corp 1,183.0 38.0 3.21%
10/21/1999 02/01/2000 Iron Mountain Inc Pierce Leahy Corp 1,174.4 35.0 2.98%
03/03/1999 07/07/1999 Welsh Carson Anderson & Stowe Concentra Managed Care Inc 1,164.3 25.0 2.15%
06/02/1999 08/09/1999 United Pan-Europe Comm NV @Entertainment Inc 1,154.6 32.0 2.77%
07/12/1999 08/13/1999 Accor SA Red Roof Inns Inc 1,128.1 30.0 2.66%
06/12/1998 07/21/1998 Armstrong World Industries Inc Triangle Pacific Corp 1,124.3 28.0 2.49%
04/14/1999 10/17/1999 Aptco LLC Berkshire Realty Co Inc 1,122.8 25.0 2.23%
09/28/1998 12/10/1998 HBO & Co Access Health Inc 1,118.3 25.0 2.24%
11/25/1998 03/30/1999 Seagull Energy Corp Ocean Energy Inc 1,094.2 30.0 2.74%
09/23/1998 03/01/1999 Regency Realty Corporation Pacific Retail Trust 1,070.0 20.0 1.87%
08/10/1998 10/15/1998 Allied Waste Industries Inc American Disposal Services Inc 1,066.6 32.0 3.00%
06/16/1998 09/30/1998 United Rentals Inc US Rentals Inc 1,046.3 30.0 2.87%
02/08/1999 07/20/1999 Chubb Corp Executive Risk Inc 1,044.9 34.0 3.25%
</TABLE>
DRAFT -5-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Target Termination Fee Analysis
Completed Merger Transactions > $100 Million with Target Termination Fees - For
the Period of 1/1/1998-2/25/2000 (Sorted by Transaction value)
($ in Millions)
<TABLE>
<CAPTION>
Fee as a % of
Date Date Transaction Termination Transaction
Announced Effective Acquiror Name Target Name Value Fee Value
---------- ---------- --------------------------- --------------------------------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
06/14/1999 11/26/1999 DoubleClick Inc Abacus Direct Corp 1,006.0 30.0 2.98%
11/02/1998 03/30/1999 BMC Software Inc Boole & Babbage Inc 1,000.1 30.0 3.00%
07/26/1999 12/23/1999 Shire Pharmaceuticals Group Roberts Pharmaceutical Corp 998.8 30.0 3.00%
08/03/1998 10/20/1998 Ascend Communications Inc Stratus Computer Inc 969.7 36.8 3.79%
02/09/1998 03/31/1998 CVS Corp Arbor Drugs Inc 966.7 60.0 6.21%
05/17/1999 10/01/1999 Charter One Finl,Cleveland,OH St. Paul Bancorp, Chicago,IL 954.6 45.0 4.71%
06/28/1999 12/07/1999 Investor Group Big Flower Holdings Inc 945.4 30.0 3.17%
06/02/1999 09/23/1999 Westwood One Inc Metro Networks Inc 926.1 30.0 3.24%
06/14/1999 11/11/1999 Vivendi SA Superior Services Inc 897.7 26.0 2.90%
09/18/1998 11/20/1998 GE Medical Systems Marquette Medical Systems Inc 897.3 35.0 3.90%
11/16/1998 01/06/1999 Vulcan Materials Co CalMat Co 886.6 20.0 2.26%
10/09/1998 02/17/1999 InaCom Corp Vanstar Corp 886.2 18.0 2.03%
11/17/1999 02/08/2000 Kimberly-Clark Corp Safeskin Corp 882.1 15.0 1.70%
09/02/1998 12/21/1998 DST Systems Inc USCS International Inc 877.8 25.0 2.85%
01/14/1998 06/19/1998 Kimco Realty Corp Price REIT Inc 870.6 12.5 1.44%
05/03/1999 08/24/1999 Investor Group Cellular Commun of Puerto Rico 867.8 20.0 2.30%
05/26/1999 12/30/1999 ACE Ltd Capital Re Corp 858.7 25.0 2.91%
05/10/1999 07/06/1999 Georgia-Pacific Corp Unisource Worldwide Inc 849.2 25.0 2.94%
08/03/1998 09/02/1998 AEI Resources Inc Zeigler Coal Holding Co 848.3 18.0 2.12%
12/03/1998 04/13/1999 Fairfax Financial Holdings Ltd TIG Holdings Inc 846.8 25.5 3.01%
05/26/1998 08/24/1998 Arbor Software Corp Hyperion Software Corp 837.3 20.0 2.39%
06/29/1998 12/31/1998 Hilton Hotels Corp Grand Casinos Inc 832.4 30.0 3.60%
05/17/1999 01/13/2000 Precision Castparts Corp Wyman-Gordon Co 828.8 25.0 3.02%
06/15/1998 11/30/1998 Charter One Finl,Cleveland,OH ALBANK Financial Corp,NY 827.8 40.0 4.83%
10/25/1999 12/29/1999 Digital Island Inc Sandpiper Networks Inc 826.7 5.0 0.60%
04/29/1998 08/14/1998 Elan Corp PLC Neurex Corp 824.5 24.0 2.91%
08/10/1998 01/04/1999 Harrah's Entertainment Inc Rio Hotel & Casino Inc 821.9 27.5 3.35%
06/01/1999 07/13/1999 Intel Corp Dialogic Corp 817.3 25.0 3.06%
08/27/1999 11/05/1999 Medtronic Inc Xomed Surgical Products Inc 815.6 24.1 2.95%
</TABLE>
DRAFT -6-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Target Termination Fee Analysis
Completed Merger Transactions > $100 Million with Target Termination Fees - For
the Period of 1/1/1998-2/25/2000 (Sorted by Transaction value)
($ in Millions)
<TABLE>
<CAPTION>
Fee as a % of
Date Date Transaction Termination Transaction
Announced Effective Acquiror Name Target Name Value Fee Value
---------- ---------- --------------------------- ------------------------------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
03/17/1998 10/02/1998 Apartment Investment & Mgmt Co Insignia Properties Trust 810.0 24.0 2.96%
07/12/1999 09/24/1999 IBM Corp Sequent Computer Systems Inc 808.9 25.0 3.09%
07/27/1999 10/27/1999 Cooper Tire & Rubber Co Standard Products Co 821.3 23.0 2.80%
05/11/1998 07/10/1999 Consolidated Edison Inc Orange & Rockland Utilities 791.8 25.0 3.16%
02/17/1998 06/11/1998 US Industries Inc Zurn Industries Inc 790.8 10.0 1.26%
01/21/1998 05/22/1998 DLJ Merchant Bkg Partners II Thermadyne Holdings Corp 790.0 16.7 2.12%
12/18/1998 03/01/1999 Borg-Warner Automotive Inc Kuhlman Corp 789.9 15.0 1.90%
07/29/1998 10/02/1998 Koninklijke Philips Electronic ATL Ultrasound Inc 786.4 23.7 3.01%
12/23/1998 09/23/1999 Kimberly-Clark Corp Ballard Medical Products 781.8 15.0 1.92%
06/28/1999 10/21/1999 Avnet Inc Marshall Industries 769.3 30.0 3.90%
02/16/1999 05/07/1999 Evercore Capital Partners LP American Media Inc 765.7 4.6 0.60%
05/11/1999 09/03/1999 UtiliCorp United Inc Empire District Electric Co 763.9 15.0 1.96%
04/30/1999 07/22/1999 Ceridian Corp ABR Information Services Inc 745.1 29.4 3.95%
08/06/1998 01/19/1999 Service Corp International Equity Corp International 738.3 20.0 2.71%
02/16/1999 05/11/1999 Delta Air Lines Inc ASA Holdings Inc 718.0 5.0 0.70%
08/27/1999 12/08/1999 Viatel Inc Destia Communications Inc 713.3 30.0 4.21%
07/06/1999 08/20/1999 Berisford PLC Scotsman Industries Inc 710.3 15.6 2.20%
05/06/1998 07/22/1998 HealthSouth Corp National Surgery Centers Inc 703.1 15.0 2.13%
04/27/1998 07/09/1998 Danaher Corp Fluke Corp 699.2 17.0 2.43%
12/14/1998 06/15/1999 American Oncology Resources Physician Reliance Network Inc 697.6 20.0 2.87%
01/13/1999 05/05/1999 Santa Fe Energy Resources Snyder Oil Corp 685.7 25.0 3.65%
04/27/1998 08/30/1998 Genesis Health Ventures Inc Vitalink Pharmacy Services Inc 678.4 20.0 2.95%
02/16/1998 08/04/1998 Tellabs Inc Coherent Communications Sys 664.3 12.0 1.81%
08/23/1999 11/23/1999 PSINet Inc Transaction Network Services 660.9 15.0 2.27%
12/09/1998 05/24/1999 Investor Group Tower Realty Trust Inc 645.5 15.0 2.32%
11/23/1998 06/09/1999 CMAC Investment Corp Amerin Corp 634.5 22.0 3.47%
06/15/1999 08/31/1999 Pharmacia & Upjohn Inc SUGEN Inc 634.1 17.0 2.68%
04/28/1999 06/17/1999 TI Group PLC Walbro Corp 630.3 11.0 1.75%
01/23/1998 04/13/1998 WHX Corp Handy & Harman 625.1 8.0 1.28%
</TABLE>
DRAFT -7-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Target Termination Fee Analysis
Completed Merger Transactions > $100 Million with Target Termination Fees - For
the Period of 1/1/1998-2/25/2000 (Sorted by Transaction value)
($ in Millions)
<TABLE>
<CAPTION>
Fee as a % of
Date Date Transaction Termination Transaction
Announced Effective Acquiror Name Target Name Value Fee Value
---------- ---------- --------------------------- ------------------------------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
04/13/1998 07/31/1998 Paragon Health Network Inc Mariner Health Group Inc 622.3 12.0 1.93%
04/23/1999 02/08/2000 Energy East Corp Connecticut Energy 621.7 5.0 0.80%
09/20/1999 11/22/1999 Cie de Saint-Gobain SA Furon Co Inc 616.0 15.0 2.44%
08/10/1999 11/02/1999 Razorfish Inc International Integration Inc 611.0 23.5 3.85%
10/10/1999 12/16/1999 Warnaco Group Inc Authentic Fitness Corp 605.3 10.0 1.65%
10/16/1998 03/16/1999 Laidlaw Inc Greyhound Lines Inc 604.2 30.0 4.97%
04/16/1999 09/01/1999 MCI WorldCom CAI Wireless Systems Inc 603.4 18.0 2.98%
05/05/1999 06/24/1999 URS Corp Dames & Moore Group 596.4 15.0 2.52%
06/01/1999 01/07/2000 Kelda Group PLC Aquarion Co 582.6 20.0 3.43%
10/05/1998 03/17/1999 ALZA Corp SEQUUS Pharmaceuticals Inc 577.4 25.0 4.33%
06/12/1998 10/26/1998 KeyCorp, Cleveland,Ohio McDonald & Co Investments Inc 577.4 5.0 0.87%
10/14/1999 12/22/1999 Millennium Pharmaceuticals Inc LeukoSite Inc 577.3 25.6 4.43%
12/02/1998 06/08/1999 Irvine Co Irvine Apartment Communities 569.3 19.3 3.38%
07/26/1999 09/02/1999 Autogrill(Edizione Holding) Host Marriott Services 547.3 20.0 3.65%
08/23/1999 10/20/1999 Sun Microsystems Inc Forte Software Inc 545.1 21.0 3.85%
12/07/1998 02/11/1999 GKN PLC Interlake Corp 540.4 10.0 1.85%
04/05/1999 07/22/1999 Welsh Carson Anderson & Stowe BancTec Inc 535.5 12.0 2.24%
08/13/1998 12/31/1998 Stone Rivet Inc Envirotest Systems Corp 535.3 12.5 2.34%
06/17/1998 09/24/1998 Micro Focus Group PLC Intersolv Inc 532.0 20.0 3.76%
06/29/1998 09/30/1998 Medtronic Inc Physio-Control International 529.1 15.0 2.84%
01/14/1998 05/29/1998 Bruckmann Rosser Sherrill & Co MEDIQ Inc 526.0 16.5 3.14%
05/06/1999 08/02/1999 Litton Industries Inc Avondale Industries Inc 523.8 15.0 2.86%
08/05/1998 02/05/1999 Public Storage Inc Storage Trust Realty 518.3 12.0 2.32%
03/25/1999 07/02/1999 Interim Services Inc Norrell Corp 517.3 10.0 1.93%
05/07/1999 07/30/1999 McDermott International Inc J Ray McDermott SA 514.5 10.0 1.94%
02/03/1999 07/07/1999 Investor Group St John Knits Inc 513.8 14.0 2.72%
05/27/1998 09/17/1998 Acxiom Corp May & Speh Inc 502.5 20.0 3.98%
08/09/1999 11/29/1999 GE Medical Systems OEC Medical Systems Inc 500.0 25.0 5.00%
11/24/1998 03/01/1999 JC Penney Co Genovese Drug Stores 497.5 15.0 3.02%
</TABLE>
DRAFT -8-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Target Termination Fee Analysis
Completed Merger Transactions > $100 Million with Target Termination Fees - For
the Period of 1/1/1998-2/25/2000 (Sorted by Transaction value)
($ in Millions)
<TABLE>
<CAPTION>
Fee as a % of
Date Date Transaction Termination Transaction
Announced Effective Acquiror Name Target Name Value Fee Value
---------- ---------- --------------------------- ------------------------------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
06/24/1999 08/31/1999 Carrier Corp(United Tech Corp) International Comfort Products 495.2 15.0 3.03%
09/27/1999 11/19/1999 Westinghouse Air Brake Co MotivePower Industries Inc 493.0 15.0 3.04%
07/28/1999 01/14/2000 BB&T Corp, Winston-Salem, NC Premier BancShares, Atlanta, GA 491.9 10.0 2.03%
10/19/1998 08/31/1999 Eastern Enterprises Colonial Gas Co 491.7 15.0 3.05%
10/21/1999 02/15/2000 Wind River Systems Inc Integrated Systems Inc 491.2 16.0 3.26%
01/19/1999 03/23/1999 Dura Automotive Systems Inc Excel Industries Inc 482.1 12.5 2.59%
02/17/1998 05/27/1998 Applied Graphics Technologies Devon Group Inc 474.4 13.0 2.74%
06/22/1999 12/15/1999 Newbridge Networks Corp Stanford Telecommunications 469.1 25.0 5.33%
06/29/1998 03/11/1999 Philadelphia Suburban Corp Consumers Water Co 460.5 1.3 0.27%
07/13/1999 10/28/1999 Excite At Home iMall Inc 460.3 2.5 0.54%
02/02/1998 04/20/1998 Romac International Inc Source Services Corp 454.4 1.5 0.33%
06/24/1999 08/30/1999 CompuWare Corp Data Processing Resources Corp 452.1 15.0 3.32%
08/10/1998 12/07/1998 R&B Falcon Corp Cliffs Drilling Co 452.1 15.0 3.32%
12/18/1998 01/26/1999 Rohm and Haas Co LeaRonal Inc 449.2 11.0 2.45%
04/27/1999 09/23/1999 Sprint Corp American Telecasting 448.5 11.0 2.45%
11/22/1999 02/10/2000 Digital Insight Corp nFront Inc 439.9 13.2 3.00%
04/15/1998 12/31/1998 Pennzoil Co Quaker State Corp 439.1 20.0 4.55%
06/02/1999 08/31/1999 Texas Instruments Inc Telogy Networks Inc 437.2 22.5 5.15%
06/21/1999 07/29/1999 National Service Industries Holophane 434.7 20.0 4.60%
05/13/1999 06/24/1999 Emerson Electric Co Daniel Industries Inc 429.2 15.0 3.49%
05/25/1999 08/17/1999 Kelso & Co Unilab Corp(Corning Inc) 429.0 10.0 2.33%
01/30/1998 02/03/1999 Colony Capital Inc Harveys Casino Resorts 427.9 10.0 2.34%
10/11/1999 12/31/1999 PeopleSoft Inc Vantive Corp 425.6 12.0 2.82%
02/08/1999 03/24/1999 Computer Associates Intl Inc Computer Management Sciences 425.1 20.0 4.70%
09/20/1999 12/30/1999 Jefferson-Pilot Corp Guarantee Life Companies Inc 424.6 9.0 2.12%
06/22/1998 08/31/1998 Learning Co Inc Broderbund Software Inc 424.3 22.5 5.30%
09/20/1999 01/12/2000 CMGI Inc AdForce Inc 419.0 15.0 3.58%
09/22/1999 11/23/1999 MedImmune Inc US Bioscience Inc 418.9 15.0 3.58%
07/07/1998 09/21/1998 Investor Group Republic Engineered Steels 417.8 4.3 1.02%
</TABLE>
DRAFT -9-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Target Termination Fee Analysis
Completed Merger Transactions > $100 Million with Target Termination Fees - For
the Period of 1/1/1998-2/25/2000 (Sorted by Transaction value)
($ in Millions)
<TABLE>
<CAPTION>
Fee as a % of
Date Date Transaction Termination Transaction
Announced Effective Acquiror Name Target Name Value Fee Value
---------- ---------- --------------------------- ------------------------------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
02/22/1999 07/22/1999 Union Planters Corp,Memphis,TN Republic Banking Corp,Miami,FL 409.5 11.0 2.69%
04/27/1999 06/09/1999 Eastman Chemical Co Lawter International Inc 408.6 14.0 3.43%
03/26/1999 06/30/1999 Fremont Partners Juno Lighting Inc 404.9 12.0 2.96%
09/20/1999 11/16/1999 Computer Sciences Corp Nichols Research Corp 400.9 16.5 4.12%
08/13/1999 09/22/1999 Hochtief AG(RWE AG) Turner Corp 394.8 10.0 2.53%
04/21/1999 11/11/1999 Healtheon Corp MedE America Inc 390.5 15.0 3.84%
12/27/1998 04/20/1999 Fairchild Corp Kaynar Technologies Inc 388.7 6.5 1.67%
02/01/1999 05/21/1999 America Online Inc AOL MovieFone Inc 384.6 12.0 3.12%
02/19/1999 03/31/1999 Securitas AB Pinkerton's Inc 383.0 7.5 1.96%
01/13/1999 12/10/1999 Casella Waste Systems Inc KTI Inc 381.7 3.0 0.79%
02/11/1998 05/20/1998 Wolters Kluwer NV Waverly Inc 379.4 10.0 2.64%
03/02/1998 08/17/1998 El Paso Natural Gas Co DeepTech International 375.4 20.0 5.33%
05/19/1999 10/01/1999 Washington Mutual,Seattle,WA Long Beach Financial Corp 374.8 15.0 4.00%
05/10/1999 07/30/1999 ShopKo Stores Inc Pamida Holdings Corp 372.3 5.0 1.34%
01/11/1999 03/24/1999 Cintas Corp Unitog Co 370.8 11.0 2.96%
10/25/1999 01/19/2000 Bamboo.com Inc Interactive Pictures Corp 368.5 16.0 4.34%
06/08/1999 07/31/1999 Meggitt PLC Whittaker Corp 357.3 6.5 1.82%
05/17/1999 11/11/1999 Security First Technologies Edify Corp 353.5 1.0 0.28%
11/11/1998 07/15/1999 Carolina Power & Light Co North Carolina Natural Gas 352.5 10.0 2.84%
03/11/1999 11/01/1999 Bay View Capital,San Mateo,CA Franchise Mortgage Acceptance 352.4 8.0 2.27%
04/29/1999 08/10/1999 Pentair Inc Essef Corp 352.1 9.4 2.66%
06/29/1998 09/22/1998 Key Energy Group Inc Dawson Production Services Inc 350.9 10.0 2.85%
01/07/1999 03/22/1999 Finova Group Inc Sirrom Capital Corp 348.2 13.8 3.96%
02/19/1998 10/15/1998 Hollywood Park Inc Casino Magic Corp 344.8 3.5 1.02%
03/05/1998 05/20/1998 Xerox Corp Intelligent Electronics Inc 342.4 9.8 2.87%
09/22/1999 02/11/2000 Chemdex Corp Promedix.com 334.5 10.0 2.99%
01/11/1999 11/24/1999 Nabors Industries Inc Pool Energy Services Co 332.8 15.0 4.51%
08/06/1998 04/16/1999 Safeway Inc Carr-Gottstein Foods Co 331.9 4.0 1.21%
01/14/1998 06/01/1998 Suiza Foods Corp Continental Can Co Inc 330.5 7.0 2.12%
</TABLE>
DRAFT -10-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Target Termination Fee Analysis
Completed Merger Transactions > $100 Million with Target Termination Fees - For
the Period of 1/1/1998-2/25/2000 (Sorted by Transaction value)
($ in Millions)
<TABLE>
<CAPTION>
Fee as a % of
Date Date Transaction Termination Transaction
Announced Effective Acquiror Name Target Name Value Fee Value
---------- ---------- --------------------------- ------------------------------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
02/23/1998 04/28/1998 Network Associates Inc Trusted Information Systems 322.1 9.0 2.79%
11/16/1998 02/26/1999 American Tower Corp Omniamerica Inc 321.4 12.0 3.73%
10/26/1999 01/31/2000 Fox Paine & Co LLC Watkins-Johnson Co 319.0 13.3 4.15%
08/30/1999 11/15/1999 Guidant Corp CardioThoracic Systems Inc 315.9 9.0 2.85%
10/25/1998 01/18/1999 Watson Pharmaceuticals Inc TheraTech Inc 312.7 5.0 1.60%
10/14/1999 02/04/2000 RailAmerica Inc RailTex Inc 308.4 8.0 2.59%
10/01/1999 11/29/1999 Kellogg Co Worthington Foods Inc 307.5 12.5 4.07%
06/24/1999 12/01/1999 Kelso & Co Citation Corp 307.4 8.2 2.66%
02/02/1998 03/27/1998 BMC Software Inc BGS Systems Inc 306.9 9.0 2.93%
08/05/1999 09/19/1999 Corning Consumer Products Co Ekco Group Inc 304.6 6.0 1.97%
05/18/1999 10/05/1999 Metromedia International Group PLD Telekom Inc 304.2 6.3 2.05%
05/19/1998 09/28/1998 Quantum Corp ATL Products Inc(Odetics) 304.0 6.0 1.97%
04/30/1999 06/11/1999 Aegis Group PLC Market Facts Inc 296.8 9.0 3.03%
12/03/1998 03/11/1999 Automatic Data Processing, Inc Vincam Group Inc 294.9 8.5 2.88%
10/21/1999 01/20/2000 Critical Path Inc Isocor 294.7 11.5 3.90%
09/02/1998 12/10/1998 Rent-Way Inc Home Choice Holdings Inc 294.4 10.0 3.40%
02/17/1999 08/02/1999 Summit Bancorp,Princeton,NJ Prime Bancorp,Philadelphia,PA 294.3 5.0 1.70%
04/06/1998 07/10/1998 Viad Corp MoneyGram Payment Systems Inc 294.0 10.0 3.40%
12/09/1998 05/25/1999 Cadence Design Systems Inc Quickturn Design Systems Inc 293.3 10.6 3.60%
07/20/1998 12/31/1998 Santa Barbara Bancorp,CA Pacific Capital Bancorp,CA 291.4 7.7 2.63%
06/04/1998 11/03/1998 Avalon Cable of Michigan Inc Cable Michigan Inc 291.2 10.0 3.43%
07/09/1998 10/28/1998 Zebra Technologies Corp Eltron International Inc 287.7 12.0 4.17%
03/23/1999 05/27/1999 ServiceMaster Co American Residential Services 283.8 3.3 1.15%
04/09/1998 07/27/1998 Complete Business Solutions Claremont Technology Group Inc 282.5 10.0 3.54%
06/22/1998 12/15/1998 JF Lehman & Co Special Devices Inc 277.8 6.0 2.16%
11/04/1999 12/22/1999 Cementos Portland SA Giant Cement Holding Inc 277.0 10.0 3.61%
02/19/1998 06/02/1998 First Security Corp,Utah California State Bank 276.9 5.0 1.81%
08/26/1999 10/08/1999 Procter & Gamble Co Recovery Engineering Inc 276.2 11.9 4.30%
02/09/1998 04/16/1998 Fountain View(Heritage) Summit Care Corp 275.1 7.0 2.54%
</TABLE>
DRAFT -11-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Target Termination Fee Analysis
Completed Merger Transactions > $100 Million with Target Termination Fees - For
the Period of 1/1/1998-2/25/2000 (Sorted by Transaction value)
($ in Millions)
<TABLE>
<CAPTION>
Fee as a % of
Date Date Transaction Termination Transaction
Announced Effective Acquiror Name Target Name Value Fee Value
---------- ---------- --------------------------- ------------------------------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
10/08/1998 11/24/1998 Penton Media Inc Mecklermedia Corp 273.7 10.0 3.65%
04/08/1998 05/19/1998 Huntsman Packaging Corp Blessings Corp 269.7 13.0 4.82%
11/09/1998 03/01/1999 MGM Grand Inc(Tracinda Corp) Primadonna Resorts Inc 268.4 10.0 3.73%
06/17/1998 09/08/1998 Carlton Communications PLC Nimbus CD International Inc 264.9 8.0 3.02%
07/27/1999 09/29/1999 IBM Corp Mylex Corp 260.5 10.0 3.84%
06/10/1998 07/31/1998 Wolters Kluwer NV Plenum Publishing Corp 258.0 7.5 2.91%
06/29/1998 10/14/1998 Dan River Inc Bibb Co Inc 257.9 5.2 2.03%
07/26/1999 11/12/1999 Biovail Corp International Fuisz Technologies Ltd 257.7 5.0 1.94%
02/11/1998 06/10/1998 Sombrero Acquisition Corp MTL Inc 250.1 7.5 3.00%
01/27/1998 03/03/1998 Sage Group PLC State of the Art Inc 245.2 8.0 3.26%
12/15/1998 03/29/1999 Quintiles Transnational Corp Pharmaceutical Marketing Svcs 244.1 8.0 3.28%
11/20/1998 01/08/1999 Maxxim Medical Inc Circon Corp 243.7 8.8 3.61%
06/08/1999 10/18/1999 Sara Lee Corp Chock Full O'Nuts Corp 242.5 7.0 2.89%
04/20/1998 09/15/1998 Kapson Senior Quarters Corp Atria Communities Inc 238.9 18.2 7.62%
09/06/1999 12/01/1999 Amdocs Ltd International Telecommun Data 236.8 6.4 2.71%
03/30/1999 07/26/1999 Cornerstone Realty Income Tr Apple Residential Income Tr 233.6 7.3 3.10%
06/30/1998 09/30/1998 Liberty Mutual Group Summit Holding Southeast Inc 233.4 10.0 4.28%
02/24/1998 05/04/1998 Baxter International Inc Somatogen Inc 232.9 5.0 2.15%
04/21/1998 08/25/1998 Investor Group PCA International Inc 232.5 6.0 2.58%
03/11/1999 09/01/1999 International Game Technology Sodak Gaming Inc 228.4 8.0 3.50%
03/13/1998 07/31/1998 Investor Group MedCath Inc 227.8 6.8 2.97%
09/18/1998 12/10/1998 MedQuist Inc MRC Group 226.8 7.5 3.31%
03/02/1998 07/01/1998 Huhtamaki Oy Sealright Co Inc 226.7 3.8 1.68%
06/10/1998 08/18/1998 Stolt Comex Seaway SA Ceanic Corp 222.8 6.6 2.96%
03/09/1999 06/29/1999 Anchor Gaming Inc Powerhouse Technologies Inc 222.4 9.0 4.05%
08/10/1998 09/21/1998 Amersham Pharmacia Biotech Ltd Molecular Dynamics Inc 222.2 7.0 3.15%
01/19/1999 02/25/1999 Louisiana-Pacific Corp ABT Building Products Corp 222.0 5.0 2.25%
09/25/1998 12/31/1998 Hasbro Inc Galoob Toys Inc 221.6 6.0 2.71%
01/01/1998 07/31/1998 ConAgra Inc GoodMark Foods Inc 217.8 9.4 4.32%
</TABLE>
DRAFT -12-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Target Termination Fee Analysis
Completed Merger Transactions > $100 Million with Target Termination Fees - For
the Period of 1/1/1998-2/25/2000 (Sorted by Transaction value)
($ in Millions)
<TABLE>
<CAPTION>
Fee as a % of
Date Date Transaction Termination Transaction
Announced Effective Acquiror Name Target Name Value Fee Value
---------- ---------- --------------------------- ------------------------------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
02/17/1998 04/29/1998 Hadco Corp Continental Circuits Corp 216.9 6.0 2.77%
06/24/1999 11/08/1999 AnswerThink Consulting Group Think New Ideas Inc 215.3 3.0 1.39%
08/10/1999 09/20/1999 Teva Pharmaceutical USA Inc Copley Pharmaceutical Inc 214.8 10.0 4.66%
04/17/1998 07/21/1998 Sterling Commerce Inc Sterling Commerce-Managed Div 214.3 4.4 2.05%
03/16/1998 05/28/1998 PLATINUM Technology Inc Logic Works Inc 212.9 1.5 0.70%
03/04/1998 08/01/1998 Global Industrial Technologies AP Green Industries Inc 212.0 8.0 3.77%
09/14/1998 09/14/1998 Qwest Commun Int Inc Icon CMT Corp 202.9 7.0 3.45%
05/12/1999 06/21/1999 Dyson-Kissner-Moran Corp Optek Technology Inc 202.6 7.0 3.46%
11/15/1999 12/21/1999 Hagemeyer NV Vallen Corp 201.0 7.5 3.73%
10/19/1998 04/07/1999 Nabors Industries Inc Bayard Drilling Technologies 200.5 7.5 3.74%
02/19/1998 04/21/1998 PLATINUM Technology Inc Mastering Inc 198.7 1.0 0.50%
05/13/1999 09/01/1999 Wachovia Corp,Winston-Salem,NC Offitbank Holdings Inc 198.6 10.0 5.04%
04/21/1999 07/23/1999 Real Software NV TAVA Technologies Inc 196.5 5.8 2.95%
05/11/1999 06/21/1999 JLG Industries Inc Gradall Industries Inc 196.2 6.0 3.06%
10/01/1998 04/29/1999 Summit Technology Inc Autonomous Technologies Corp 195.6 2.6 1.33%
06/07/1999 09/30/1999 Yellow Corp Jevic Transportation Inc 194.5 4.8 2.44%
06/04/1998 11/30/1998 World Access Inc Telco Systems Inc 194.5 5.5 2.83%
09/29/1998 11/10/1998 Wolter Kluwer US Corp Ovid Technologies Inc 193.4 7.0 3.62%
04/09/1998 05/15/1998 Richfood Holdings Inc Dart Group Corp 193.3 6.0 3.10%
06/24/1998 10/05/1998 Mylan Laboratories Inc Penederm Inc 193.1 9.0 4.66%
06/02/1999 08/30/1999 Geon Co(BF Goodrich Co) O'Sullivan Corp 191.8 5.0 2.61%
11/20/1998 04/06/1999 SpeedFam-IPEC Inc Integrated Process Equipment 188.8 6.0 3.18%
05/10/1999 06/14/1999 GN Great Nordic Ltd ReSound Corp 185.4 7.0 3.78%
02/05/1998 07/01/1998 Premier BancShares,Atlanta,GA Button Gwinnett Financial 184.4 1.0 0.54%
10/19/1998 03/01/1999 Intel Corp Shiva Corp 184.2 5.5 2.96%
10/19/1998 05/14/1999 Sunrise Assisted Living Inc Karrington Health Inc 184.1 5.0 2.72%
04/08/1999 05/30/1999 Onex Corp American Building Co 183.8 8.0 4.35%
04/12/1999 09/28/1999 Sprint Corp People's Choice TV Corp 183.0 14.0 7.65%
06/22/1999 09/24/1999 S3 Inc Diamond Multimedia Systems Inc 183.0 5.0 2.73%
</TABLE>
DRAFT -13-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Target Termination Fee Analysis
Completed Merger Transactions > $100 Million with Target Termination Fees - For
the Period of 1/1/1998-2/25/2000 (Sorted by Transaction value)
($ in Millions)
<TABLE>
<CAPTION>
Fee as a % of
Date Date Transaction Termination Transaction
Announced Effective Acquiror Name Target Name Value Fee Value
---------- ---------- --------------------------- ------------------------------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
07/17/1998 09/02/1998 DLJ Merchant Banking Inc DeCrane Aircraft Holdings Inc 181.5 6.9 3.80%
03/06/1998 09/11/1998 Protective Life Corp United Dental Care Inc 180.4 4.6 2.55%
12/13/1999 02/09/2000 Mail.com Inc NetMoves 179.8 7.0 3.89%
11/13/1998 02/26/1999 American Tower Corp TeleCom Towers(TeleCom,Cox) 179.7 10.0 5.56%
12/11/1998 02/16/1999 Cracker Barrel Old Country Str Logans Roadhouse Inc 178.3 5.5 3.08%
07/15/1999 09/01/1999 Sterling Software Inc Information Advantage Software 177.5 6.5 3.66%
03/24/1998 06/24/1998 Cognizant Corp Walsh International Inc 176.8 4.7 2.66%
11/02/1998 12/30/1998 Celestica Inc Intl Manufacturing Svcs Inc 173.2 4.0 2.31%
02/15/1999 07/01/1999 JW Childs Equity Partners LP American Safety Razor Co 173.1 5.5 3.18%
04/27/1999 08/13/1999 InterVoice Inc Brite Voice Systems Inc 172.2 5.0 2.89%
09/23/1999 11/04/1999 Textron Financial Corp Litchfield Financial Corp 171.1 5.5 3.21%
06/09/1999 07/20/1999 Ford Motor Co Automobile Protection Corp 169.9 6.3 3.71%
04/29/1999 07/08/1999 AmeriSource Health Corp CD Smith Healthcare Inc 169.0 8.5 5.03%
11/02/1998 03/18/1999 ServiceMaster Co LandCARE USA Inc 167.5 7.6 4.52%
04/20/1999 06/10/1999 LHS Group Inc Priority Call Management 166.1 4.5 2.71%
02/17/1998 08/17/1998 HB Acquisition Corp Bell Sports Corp 165.7 3.0 1.81%
05/27/1999 09/01/1999 Carlyle Group LP Empi Inc 165.3 6.0 3.63%
09/07/1999 12/16/1999 Mediconsult.com Inc Physicians Online Inc 163.8 7.5 4.58%
04/23/1998 10/16/1998 Charter One Finl,Cleveland,OH CS Financial Corp 162.8 2.5 1.54%
05/07/1999 09/29/1999 Kirtland Capital Partners Instron Corp 159.9 5.0 3.13%
03/15/1999 06/17/1999 Vulcan Ventures Inc Go2Net Inc 158.5 17.5 11.04%
10/27/1999 01/21/2000 Lennox International Inc Service Experts Inc 158.3 5.0 3.16%
06/10/1998 10/30/1998 Family Restaurants Inc Koo Koo Roo Inc 158.0 6.0 3.80%
02/17/1998 08/11/1998 Fleetwood Enterprises Inc HomeUSA Inc 155.5 6.0 3.86%
07/28/1999 09/07/1999 Caradon PLC(MB Group PLC) Easco Inc(American Industrial) 154.7 8.0 5.17%
03/31/1998 06/29/1998 Omnicare Inc IBAH Inc 154.3 5.0 3.24%
08/03/1998 10/16/1998 CMS Energy Corp Continental Natural Gas Inc 154.2 3.0 1.95%
11/12/1998 03/22/1999 Ames Department Stores Inc Hills Stores Co 153.4 5.0 3.26%
05/29/1998 08/06/1998 Bradley Real Estate Inc Mid-America Realty Investments 153.2 2.5 1.63%
</TABLE>
DRAFT -14-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Target Termination Fee Analysis
Completed Merger Transactions > $100 Million with Target Termination Fees - For
the Period of 1/1/1998-2/25/2000 (Sorted by Transaction value)
($ in Millions)
<TABLE>
<CAPTION>
Fee as a % of
Date Date Transaction Termination Transaction
Announced Effective Acquiror Name Target Name Value Fee Value
---------- ---------- --------------------------- ------------------------------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
06/18/1998 11/23/1998 Summit Bancorp,Princeton,NJ NSS Bancorp,Norwalk,CT 151.3 3.5 2.31%
03/02/1998 08/03/1998 Unitrode Corp Benchmarq Microelectronics Inc 150.6 4.5 3.01%
06/22/1999 09/24/1999 Multex.com Inc Market Guide Inc 149.8 4.5 3.00%
06/22/1998 10/02/1998 Schwinn Holdings Corp GT Bicycles Inc 149.6 4.0 2.67%
07/30/1999 10/21/1999 Corning Consumer Products Co General Housewares Corp 148.6 4.3 2.86%
03/17/1998 05/27/1998 CBT Group PLC ForeFront Group Inc 147.5 5.1 3.44%
11/18/1999 01/31/2000 Tumbleweed Communications Corp Worldtalk Communications Corp 146.7 4.0 2.73%
04/15/1998 05/29/1998 Siebe PLC Simulation Sciences Inc 146.5 7.3 4.95%
05/06/1999 06/18/1999 Falcon Products Inc Shelby Williams Industries Inc 145.2 4.8 3.27%
08/28/1998 01/22/1999 Union Planters Corp,Memphis,TN Ready State Bank of Hialeah 145.0 5.0 3.45%
02/23/1999 03/31/1999 First Technology PLC Control Devices Inc 142.4 2.0 1.40%
01/26/1998 05/06/1998 USA Waste Services Inc TransAmerican Waste Industries 142.3 3.0 2.11%
05/08/1998 06/15/1998 Agrobios(Desc SA de CV) Authentic Specialty Foods Inc 141.9 3.7 2.61%
11/19/1998 02/22/1999 American Airlines Inc(AMR) Reno Air Inc 141.3 3.0 2.12%
12/11/1998 05/13/1999 3Dfx Interactive Inc STB Systems Inc 141.0 5.0 3.55%
08/02/1999 09/03/1999 Inamed Corp Collagen Aesthetics Inc 140.8 7.0 4.97%
02/04/1998 06/14/1998 Pharmacopeia Inc Molecular Simulations Inc 140.3 3.0 2.14%
03/26/1998 07/31/1998 Aviation Sales Co Whitehall Corp 139.9 7.5 5.36%
01/20/1998 10/05/1998 Albertson's Inc Buttrey Food and Drug Stores 139.2 4.0 2.89%
10/16/1998 12/15/1998 Affiliated Computer Services BRC Holdings Inc 137.2 10.0 7.29%
02/10/1999 03/26/1999 GlobeGround GmbH Hudson General Corp 134.7 3.5 2.60%
01/22/1999 06/01/1999 Genesis Microchip Inc Paradise Electronics Inc 133.3 5.0 3.75%
10/21/1999 02/04/2000 United Technologies Corp Cade Industries Inc 133.2 4.0 3.00%
08/04/1998 12/31/1998 Guidant Corp InControl Inc 132.1 5.0 3.79%
09/11/1998 06/22/1999 Suiza Foods Corp Broughton Foods Co 130.8 1.0 0.76%
02/04/1998 06/09/1998 Primus Telecommunications TresCom International Inc 130.7 5.0 3.83%
02/01/1999 08/02/1999 Independence Community Bank Broad Natl Bancorp,Newark,NJ 130.4 6.5 4.98%
01/11/1999 03/08/1999 Compaq Computer Corp Shopping.com 130.1 9.0 6.92%
07/28/1998 09/10/1998 Network Associates Inc CyberMedia Inc 130.1 4.0 3.07%
</TABLE>
DRAFT -15-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Target Termination Fee Analysis
Completed Merger Transactions > $100 Million with Target Termination Fees - For
the Period of 1/1/1998-2/25/2000 (Sorted by Transaction value)
($ in Millions)
<TABLE>
<CAPTION>
Fee as a % of
Date Date Transaction Termination Transaction
Announced Effective Acquiror Name Target Name Value Fee Value
---------- ---------- --------------------------- ------------------------------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
02/02/1998 12/03/1998 CompassBank,New Bedford,MA Sandwich Bancorp,Sandwich,MA 129.6 6.0 4.63%
06/14/1999 08/02/1999 Cadence Design Systems Inc OrCAD Inc 129.5 4.0 3.09%
04/16/1998 09/28/1998 Phoenix Technologies Ltd Award Software International 129.5 4.0 3.09%
12/17/1998 02/04/1999 Moriarty Acquisition Corp Rival Co 129.4 4.5 3.48%
04/05/1999 07/16/1999 Lucent Technologies Inc Mosaix Inc 129.3 2.8 2.18%
03/02/1998 04/30/1998 Sunbeam Corp First Alert Inc 129.2 3.8 2.90%
06/01/1999 08/27/1999 SFX Entertainment Inc Livent-Theaters(3),Prodn Asts 127.8 2.3 1.76%
12/10/1998 06/01/1999 M&T Bank Corp,Buffalo,New York FNB Rochester Corp,NY 127.8 13.0 10.17%
04/27/1998 07/27/1998 Bright Horizons Holdings Inc CorporateFamily Solutions Inc 127.0 4.0 3.15%
06/16/1999 08/26/1999 Tyco International Ltd Central Sprinkler Corp 125.5 6.0 4.78%
09/01/1999 01/18/2000 US Bancorp,Minneapolis,MN Peninsula Bank of San Diego,CA 124.8 5.0 4.01%
09/18/1998 02/19/1999 ABC Rail Products Corp Naco Inc 122.6 5.0 4.08%
07/27/1999 12/15/1999 Global Pharmaceutical Corp Impax Pharmaceuticals Inc 122.3 0.5 0.41%
02/09/1998 06/18/1998 USA Waste Services Inc American Waste Services 122.1 7.5 6.14%
11/16/1998 06/30/1999 Temple-Inland Inc,Diboll,Texas HF Bancorp Inc,Hemet,CA 121.6 4.9 4.00%
06/11/1999 07/21/1999 Solvay Pharmaceuticals SA Unimed Pharmaceuticals Inc 119.9 4.0 3.34%
05/24/1999 08/17/1999 RadiSys Corp Texas Micro Inc 123.7 2.5 2.02%
03/04/1999 06/01/1999 Men's Wearhouse Inc K&G Men's Center Inc 118.3 3.0 2.54%
03/09/1998 04/30/1998 Western Atlas Inc 3-D Geophysical Inc 117.6 5.5 4.68%
11/10/1998 12/16/1998 Roanoke Electric Steel Steel of West Virginia Inc 116.8 5.0 4.28%
11/12/1999 02/09/2000 TriPoint Global Communications Vertex Communications Corp 116.0 3.8 3.31%
07/27/1998 11/04/1998 Cisco Systems Inc Summa Four Inc 116.0 3.5 3.02%
07/23/1998 10/08/1998 Digital Microwave Corp Innova Corp 115.7 4.5 3.89%
11/10/1998 12/22/1998 Select Medical Corp Intensiva Healthcare Corp 115.2 4.0 3.47%
07/06/1998 12/23/1998 Davel Communications Group Inc Peoples Telephone Co Inc 114.5 5.0 4.37%
05/29/1998 08/17/1998 Pogo Producing Co Arch Petroleum Inc 114.0 3.0 2.63%
05/19/1999 09/03/1999 Guardian Life Ins Co of Amer First Commonwealth Inc 113.7 5.1 4.49%
04/05/1999 06/29/1999 Res-Care Inc PeopleServe Inc 111.8 7.5 6.71%
11/24/1998 03/24/1999 BGI Acquisition LLC Besicorp Group Inc 111.8 3.5 3.13%
</TABLE>
DRAFT -16-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Target Termination Fee Analysis
Completed Merger Transactions > $100 Million with Target Termination Fees - For
the Period of 1/1/1998-2/25/2000 (Sorted by Transaction value)
($ in Millions)
<TABLE>
<CAPTION>
Fee as a % of
Date Date Transaction Termination Transaction
Announced Effective Acquiror Name Target Name Value Fee Value
---------- ---------- --------------------------- ------------------------------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
01/07/1999 02/17/1999 Illinois Tool Works Inc Trident International Inc 111.7 3.5 3.09%
09/09/1998 05/03/1999 FBOP Corp,Oak Park,Illinois Calumet Bancorp Inc 110.6 11.0 9.95%
11/02/1998 12/10/1998 Danone Group AquaPenn Spring Water Co Inc 110.3 3.4 3.08%
11/09/1998 12/22/1998 Stonington Partners Inc Global Motorsport Group Inc 109.0 3.0 2.75%
02/04/1998 03/15/1999 Playboy Enterprises Intl Inc Spice Entertainment Cos Inc 108.8 3.0 2.76%
03/08/1999 06/24/1999 Anteon Corp Analysis & Technology Inc 108.5 5.0 4.61%
08/23/1999 11/11/1999 Tyco International Ltd General Surgical Innovations 108.3 4.0 3.69%
05/13/1999 08/23/1999 NCO Group Inc Compass International Svcs 107.7 3.5 3.25%
06/07/1999 10/01/1999 AutoCyte Inc Neopath Inc 107.5 2.8 2.60%
10/06/1998 03/17/1999 CDNow Inc N2K Inc 105.9 3.8 3.54%
08/07/1998 09/14/1998 SFX Entertainment Inc Magicworks Entertainment Inc 105.3 3.3 3.13%
05/28/1998 07/07/1998 Bowne & Co Inc Donnelley Enterprise Solutions 105.2 4.0 3.80%
02/22/1999 06/22/1999 LSI Logic Corp SEEQ Technology Inc 104.3 4.0 3.84%
03/04/1998 08/31/1998 Union Planters Bank of Florida Transflorida Bank,FL 103.5 3.5 3.38%
07/21/1998 01/05/1999 National Penn Bancshares Inc Elverson National Bank 102.0 5.0 4.90%
10/01/1998 01/07/1999 Arrow Electronics Inc Richey Electronics Inc 101.8 5.5 5.40%
08/26/1998 01/08/1999 Salton/Maxim Houswares Inc Toastmaster Inc 101.2 2.0 1.98%
09/13/1999 02/10/2000 Affymetrix Inc(Affymax NV) Genetic Microsystems Inc 101.1 2.5 2.47%
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------
STANDARD
AVERAGE DEVIATION
------------- ---------
<S> <C> <C>
All 2.92% 1.29
$100-$200 3.56% 1.66
$200-$500 2.98% 1.15
$500-$1,000 2.80% 1.06
$1,000-$1,500 2.69% 0.71
$1,500-Above 2.32% 0.90
---------------------------------------
Median
-------------
</TABLE>
____________________
Source: Securities Data Company, Inc.
(1) Transaction Value is defined by SDC as reported deal value, which includes
the amount paid for all common stock, common stock equivalents, preferred
stock, debt, options, assets, warrants and stake purchases made within six
months of the announcement date of the transaction.
DRAFT -17-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Target Termination Fee Analysis
Completed Merger Transactions > $100 Million with Target Termination Fees - For
the Period of 1/1/1998-2/25/2000 (Sorted by Transaction value)
($ in Millions)
All 2.89%
------------------------------
DRAFT -18-
<PAGE>
--------------------------------------------------------------------------------
EXHIBIT B
--------------------------------------------------------------------------------
DRAFT -19-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Cash Merger Transactions Between $100 Million to $1.5 Billion - For the
Period of 1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
12/15/1998 01/21/1999 EMAP PLC Petersen Companies Inc $1,494.8 8.6% 43.9% 39.8%
05/04/1999 06/24/1999 Getronics NV Wang Laboratories Inc 1,490.2 14.7% 22.8% 41.4%
10/20/1997 03/06/1998 Kinder Morgan Energy Partners Santa Fe Pacific Pipeline 1,473.0 31.8% 33.2% 38.6%
01/20/1998 05/27/1998 Investor Group Regal Cinemas Inc 1,462.7 14.3% 10.7% 34.8%
11/17/1998 03/30/1999 Prologis Trust Meridian Industrial Trust Inc 1,456.8 12.7% 14.9% 9.0%
06/18/1999 01/11/2000 Citizens Financial Group,RI UST Corp,Boston,MA 1,402.6 33.2% 34.7% 33.3%
07/12/1999 11/16/1999 Royal & Sun Alliance Insurance Orion Capital Corp 1,390.6 22.7% 30.5% 68.8%
01/23/1997 05/19/1997 Kohlberg Kravis Roberts & Co Amphenol Corp 1,390.4 12.4% 16.9% 26.1%
05/21/1999 09/30/1999 AK Steel Holding Corp Armco Inc 1,390.3 19.0% 13.9% 27.5%
09/28/1999 12/10/1999 Chase Manhattan Corp,NY Hambrecht & Quist Group Inc 1,368.0 21.8% 26.2% 30.9%
07/19/1999 01/06/2000 AirTouch Cellular CommNet Cellular Inc 1,349.8 2.5% -3.3% 44.6%
01/21/1997 07/08/1997 First Maryland Bancorp,MD Dauphin Deposit Corp,PA 1,343.4 32.2% 43.3% 49.0%
11/20/1998 10/19/1999 AES Corp CILCORP Inc 1,332.7 21.5% 23.2% 27.1%
04/21/1998 06/24/1998 GEC PLC Tracor Inc 1,323.5 10.0% 16.8% 25.0%
04/19/1999 08/19/1999 Investor Group Blount International Inc 1,257.3 8.4% 8.1% 11.6%
06/16/1997 10/10/1997 Genesis Eldercare Multicare Cos Inc 1,249.1 9.3% 13.7% 34.9%
02/18/1997 06/27/1997 NGC Corp Destec Energy Inc 1,222.4 82.3% 80.4% 63.4%
09/12/1997 02/25/1998 American General Corp Western National Corp 1,215.0 9.6% 7.4% 14.4%
03/03/1999 07/07/1999 Welsh Carson Anderson & Stowe Concentra Managed Care Inc 1,164.3 41.9% 56.2% 58.1%
02/26/1999 06/23/1999 Koninklijke Philips Electronic VLSI Technology Inc 1,162.5 95.3% 115.4% 76.8%
06/02/1999 08/09/1999 United Pan-Europe Comm NV @Entertainment Inc 1,154.6 52.0% 47.6% 120.3%
01/15/1997 08/06/1997 Columbia/HCA Healthcare Corp Value Health Inc 1,132.3 1.2% 0.6% 0.0%
07/12/1999 08/13/1999 Accor SA Red Roof Inns Inc 1,128.1 24.2% 26.4% 31.9%
06/16/1999 07/15/1999 Cendant Corp Cendant Corp 1,125.0 13.9% 18.4% 19.2%
06/12/1998 07/21/1998 Armstrong World Industries Inc Triangle Pacific Corp 1,124.3 26.1% 26.5% 24.0%
04/14/1999 10/17/1999 Aptco LLC Berkshire Realty Co Inc 1,122.8 25.6% 29.8% 27.3%
03/14/1997 10/01/1997 Marshall & Ilsley,Milwaukee,WI Security Capital,Milwaukee,WI 1,115.8 31.4% 32.6% 39.9%
06/09/1997 07/15/1997 Atlas Copco North America Inc Prime Service Inc 1,112.0 28.6% 29.9% 31.3%
09/02/1999 10/08/1999 Dyckerhoff AG Lone Star Industries Inc 1,074.6 44.7% 50.7% 34.7%
09/25/1999 11/18/1999 Grupo Mexicano de Desarrollo ASARCO Inc 1,073.3 26.3% 39.6% 31.1%
05/08/1997 11/04/1997 Apollo Management LP Living Centers of America Inc 1,048.2 17.8% 22.7% 41.5%
06/06/1997 10/14/1997 Excel Communications Inc Telco Communications Group Inc 1,046.5 32.9% 23.8% 26.4%
04/27/1998 06/01/1998 Lucent Technologies Inc Yurie Systems Inc 1,044.1 11.1% 17.4% 49.7%
01/07/1997 02/25/1997 MedTrans Inc(Laidlaw Inc) American Medical Response Inc 1,011.1 21.2% 23.1% 36.8%
01/16/1998 06/02/1998 US Office Products Co US Office Products Co 1,000.0 46.9% 70.1% 61.8%
04/29/1999 06/17/1999 United News & Media PLC CMP Media Inc 994.0 15.1% 27.9% 25.6%
10/10/1997 11/19/1997 Kennametal Inc Greenfield Industries Inc 957.0 19.7% 26.7% 44.1%
08/07/1997 01/21/1998 Investor Group Fisher Scientific Intl Inc 950.6 -5.2% -0.4% 5.5%
06/28/1999 12/07/1999 Investor Group Big Flower Holdings Inc 945.4 12.0% 9.3% 18.1%
02/17/1999 02/10/2000 SCANA Corp PSNC 941.0 45.1% 45.1% 32.0%
07/30/1997 09/18/1997 Fujitsu Ltd Amdahl Corp 924.8 5.0% 22.5% 25.6%
09/05/1997 11/26/1997 Misys PLC Medic Computer Systems Inc 915.8 7.7% 12.0% 25.0%
</TABLE>
DRAFT -1-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Cash Merger Transactions Between $100 Million to $1.5 Billion - For the
Period of 1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
07/08/1999 11/02/1999 Allstate Corp American Heritage Life Invt 914.4 21.1% 25.9% 40.2%
12/11/1997 01/20/1998 MascoTech Inc TriMas Corp 911.7 12.7% 10.0% 19.0%
02/04/1997 05/06/1997 WMX Technologies Inc WMX Technologies Inc 900.0 -17.0% -12.4% -9.1%
06/14/1999 11/11/1999 Vivendi SA Superior Services Inc 897.7 13.7% 25.6% 20.3%
10/28/1997 04/01/1998 First Empire State Corp,NY ONBANCorp Inc,Syracuse,NY 893.0 18.0% 12.9% 21.4%
08/04/1998 10/08/1998 AlliedSignal Inc AMP Inc 890.0 55.5% 50.8% 30.4%
11/16/1998 01/06/1999 Vulcan Materials Co CalMat Co 886.6 14.0% 16.7% 33.0%
04/14/1997 11/12/1997 Neptune Orient Lines Ltd APL Ltd 878.5 55.8% 65.4% 42.6%
04/05/1999 11/22/1999 Investor Group Sunstone Hotel Investors Inc 875.4 41.9% 43.1% 40.7%
05/23/1997 10/06/1997 Price Communications Corp Palmer Wireless Inc 870.4 45.1% 55.6% 64.7%
06/20/1997 03/30/1998 Waste Management Inc Wheelabrator Technologies Inc 869.7 26.9% 28.2% 30.7%
05/03/1999 08/24/1999 Investor Group Cellular Commun of Puerto Rico 867.8 24.2% 12.9% 7.3%
05/10/1999 07/06/1999 Georgia-Pacific Corp Unisource Worldwide Inc 849.2 37.1% 43.3% 67.0%
08/03/1998 09/02/1998 AEI Resources Inc Zeigler Coal Holding Co 848.3 32.8% 30.8% 20.6%
12/03/1998 04/13/1999 Fairfax Financial Holdings Ltd TIG Holdings Inc 846.8 26.9% 29.4% 15.3%
05/17/1999 01/13/2000 Precision Castparts Corp Wyman-Gordon Co 828.8 50.9% 56.9% 87.1%
06/01/1999 07/13/1999 Intel Corp Dialogic Corp 817.3 31.8% 40.8% 53.7%
01/20/1998 02/23/1998 ADVANTA Corp ADVANTA Corp 814.6 41.6% 41.0% 61.6%
10/19/1999 03/07/2000 Farmers Insurance Group Foremost Corp of America 814.0 22.2% 22.2% 22.5%
07/12/1999 09/24/1999 IBM Corp Sequent Computer Systems Inc 808.9 7.5% 32.1% 41.9%
07/27/1999 10/27/1999 Cooper Tire & Rubber Co Standard Products Co 800.6 46.0% 54.9% 35.8%
07/20/1998 08/14/1998 Inland Steel Industries Inc Inland Steel Industries Inc 794.5 4.3% 9.8% 5.7%
05/11/1998 07/10/1999 Consolidated Edison Inc Orange & Rockland Utilities 791.8 38.5% 40.5% 35.1%
12/18/1997 02/12/1999 NIPSCO Industries Inc Bay State Gas Co 790.5 26.5% 32.0% 38.5%
01/21/1998 05/22/1998 DLJ Merchant Bkg Partners II Thermadyne Holdings Corp 790.0 19.5% 21.1% 18.5%
12/18/1998 03/01/1999 Borg-Warner Automotive Inc Kuhlman Corp 789.9 23.8% 43.1% 38.4%
07/29/1998 10/02/1998 Koninklijke Philips Electronic ATL Ultrasound Inc 786.4 20.1% 12.2% 9.8%
05/18/1999 08/16/1999 AMSTED Industries Inc Varlen Corp 784.8 61.9% 50.0% 68.4%
07/10/1997 11/18/1997 Investor Group Kinetic Concepts Inc 776.7 6.9% 7.7% 9.2%
04/21/1997 06/10/1997 Harcourt General Inc National Education Corp 776.1 22.6% 54.1% 40.0%
04/14/1997 01/05/1998 Patriot Amer Hosp/Wyndham Intl Wyndham Hotel Corp 773.1 48.0% 44.5% 48.9%
06/28/1999 10/21/1999 Avnet Inc Marshall Industries 769.3 74.8% 99.6% 99.6%
09/11/1997 12/22/1997 Pillowtex Corp Fieldcrest Cannon Inc 768.2 1.5% 8.6% 31.7%
12/15/1997 05/01/1998 US Bancorp,Minneapolis,MN Piper Jaffray Cos 767.8 25.2% 24.2% 54.0%
02/16/1999 05/07/1999 Evercore Capital Partners LP American Media Inc 765.7 13.1% 21.7% 36.6%
05/11/1999 09/03/1999 UtiliCorp United Inc Empire District Electric Co 763.9 38.8% 39.6% 36.0%
12/22/1997 05/21/1998 Investor Group Dynatech Corp 762.9 29.9% 37.2% 29.9%
05/03/1999 06/04/1999 Limited Inc Limited Inc 750.0 14.3% 19.0% 26.8%
04/30/1999 07/22/1999 Ceridian Corp ABR Information Services Inc 745.1 48.4% 50.6% 54.5%
12/16/1998 01/25/1999 Seita Consolidated Cigar Holdings 730.4 12.4% 33.5% 86.7%
01/26/2000 02/28/2000 Sempra Energy Sempra Energy 720.0 15.9% 15.9% 13.5%
02/16/1999 05/11/1999 Delta Air Lines Inc ASA Holdings Inc 718.0 6.5% 10.6% 4.2%
</TABLE>
DRAFT -2-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysisa
All Cash Merger Transactions Between $100 Million to $1.5 Billion - For the
Period of 1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
05/06/1997 08/15/1997 GTE Corp BBN Corp 713.8 26.1% 32.6% 64.5%
07/06/1999 08/20/1999 Berisford PLC Scotsman Industries Inc 710.3 1.1% 48.7% 57.6%
06/12/1997 10/01/1997 Thyssen AG Giddings & Lewis Inc 703.0 10.5% 9.8% 0.6%
12/12/1997 05/29/1998 Bethlehem Steel Corp Lukens Inc 700.2 92.0% 94.3% 69.6%
06/15/1999 03/01/2000 Northeast Utilities Yankee Energy System Inc 681.6 38.5% 46.9% 51.9%
04/27/1998 08/30/1998 Genesis Health Ventures Inc Vitalink Pharmacy Services Inc 678.4 13.6% 12.2% 6.5%
12/11/1997 07/01/1998 Harvard Private Capital Group White River Corp 676.2 16.2% 24.6% 22.5%
09/15/1997 02/06/1998 Star Banc Corp, Cincinnati, OH Great Financial Corp,Kentucky 663.5 2.9% 23.5% 33.8%
08/23/1999 11/23/1999 PSINet Inc Transaction Network Services 660.9 32.2% 61.7% 56.5%
03/25/1997 05/07/1997 IBP Inc (Occidental Petroleum) Foodbrands America Inc 657.5 47.4% 51.0% 61.4%
09/04/1997 01/09/1998 Tyson Foods Inc Hudson Foods Inc 648.4 23.5% 31.6% 28.6%
07/14/1999 08/11/1999 EI du Pont de Nemours and Co EI du Pont de Nemours and Co 646.1 10.6% 15.5% 14.6%
12/09/1998 05/24/1999 Investor Group Tower Realty Trust Inc 645.5 9.4% 9.8% 16.4%
07/03/1997 08/06/1997 Raab Karcher AG (VEBA AG) Wyle Electronics 633.0 16.8% 38.4% 35.1%
05/28/1997 02/10/1998 Blackstone Capital Partners CommNet Cellular Inc 631.2 21.8% 28.6% 39.8%
05/28/1997 07/03/1997 Owens Corning Fibreboard Corp 631.2 15.8% 22.2% 49.7%
04/28/1999 06/17/1999 TI Group PLC Walbro Corp 630.3 62.4% 102.5% 122.2%
05/07/1997 08/26/1997 Vencor Inc Transitional Hospitals Corp 628.0 60.0% 60.0% 85.5%
01/23/1998 04/13/1998 WHX Corp Handy & Harman 625.1 8.7% 14.6% 1.6%
04/23/1999 02/08/2000 Energy East Corp Connecticut Energy 621.7 34.1% 50.0% 65.1%
12/16/1997 01/30/1998 SulzerMedica(Gebrueder Sulzer) Spine-Tech Inc 621.1 14.3% 52.9% 55.8%
09/20/1999 11/22/1999 Cie de Saint-Gobain SA Furon Co Inc 616.0 56.3% 50.0% 60.0%
10/10/1999 12/16/1999 Warnaco Group Inc Authentic Fitness Corp 605.3 18.4% 17.6% 24.2%
10/16/1998 03/16/1999 Laidlaw Inc Greyhound Lines Inc 604.2 36.8% 79.3% 42.5%
01/27/1997 03/07/1997 Honeywell Inc Measurex Corp 597.0 44.3% 42.1% 45.8%
10/21/1997 01/07/1998 Berkshire Hathaway Inc International Dairy Queen Inc 596.9 11.9% 9.1% 9.4%
05/05/1999 06/24/1999 URS Corp Dames & Moore Group 596.4 33.3% 33.3% 51.5%
07/28/1997 10/08/1997 Sun Healthcare Group Inc Regency Health Services Inc 587.9 34.4% 50.4% 43.1%
09/03/1997 10/01/1997 Browning-Ferris Industries Inc Browning-Ferris Industries Inc 585.0 10.4% 10.2% 8.0%
10/09/1997 03/31/1998 Browning-Ferris Industries Inc Browning-Ferris Industries Inc 585.0 4.7% 3.1% 3.8%
03/20/1997 06/17/1997 Investcorp Falcon Building Products Inc 584.5 43.4% 49.5% 52.7%
10/17/1997 11/19/1997 BTR PLC Exide Electronics Group Inc 583.2 125.2% 133.2% 149.5%
03/09/1998 08/31/1998 Fortis BV (Fortis AG,AMEV) John Alden Financial Corp 583.1 -0.6% 0.0% 3.4%
08/26/1997 12/22/1997 Imperial Holly Corp Savannah Foods & Industries 582.9 8.4% 14.9% 17.4%
06/01/1999 01/07/2000 Kelda Group PLC Aquarion Co 582.6 19.3% 28.0% 39.5%
06/08/1999 07/28/1999 Merck E (Merck AG) VWR Scientific Products Corp 581.1 32.7% 30.7% 46.5%
04/09/1997 05/13/1997 Tomkins PLC Stant Corp(Bessemer Capital Pa 574.0 29.3% 48.3% 49.6%
02/08/1999 04/29/1999 Building One Services Corp Building One Services Corp 573.8 11.8% 12.3% 10.1%
12/02/1998 06/08/1999 Irvine Co Irvine Apartment Communities 569.3 24.2% 25.3% 28.0%
07/26/1999 09/02/1999 Autogrill (Benetton Group SpA) Host Marriott Services 547.3 61.5% 73.8% 101.6%
03/26/1998 10/01/1998 Zions Bancorp,Utah Sumitomo Bank of California 544.3 -5.8% 6.3% -18.2%
12/07/1998 02/11/1999 GKN PLC Interlake Corp 540.4 107.1% 110.9% 100.0%
</TABLE>
DRAFT -3-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Cash Merger Transactions Between $100 Million to $1.5 Billion - For the
Period of 1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- --------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
04/05/1999 07/22/1999 Welsh Carson Anderson & Stowe BancTec Inc 535.5 42.3% 33.9% 28.1%
08/13/1998 12/31/1998 Stone Rivet Inc Envirotest Systems Corp 535.3 15.0% 1.5% -16.9%
05/06/1999 08/02/1999 Litton Industries Inc Avondale Industries Inc 523.8 47.0% 47.0% 38.6%
11/19/1997 08/12/1998 Investor Group Telemundo Group Inc 521.4 19.7% 29.1% 25.0%
03/10/1997 09/02/1997 General Electric Co Greenwich Air Services Inc 519.2 21.6% 33.3% 34.8%
06/23/1997 10/17/1997 General Motors Acceptance(GM) Integon Corp 517.1 173.7% 92.6% 74.8%
05/07/1999 07/30/1999 McDermott International Inc J Ray McDermott SA 514.5 16.8% 13.1% 19.2%
02/03/1999 07/07/1999 Investor Group St John Knits Inc 513.8 42.9% 44.1% 50.0%
09/16/1997 11/04/1997 Pearson PLC All American Communications 500.2 12.7% 41.7% 37.8%
07/12/1999 01/06/2000 RHI AG Global Industrial Technologies 498.2 4.0% 6.1% 9.5%
01/30/1997 08/12/1997 Samsung Electronics Co Ltd AST Research Inc 495.8 16.8% 8.0% 20.0%
06/24/1999 08/31/1999 Carrier Corp(United Tech Corp) International Comfort Products 495.2 9.3% 11.9% 33.3%
10/19/1998 08/31/1999 Eastern Enterprises Colonial Gas Co 491.7 26.9% 29.9% 26.1%
03/24/1999 11/04/1999 Warburg, Pincus Ventures Inc Knoll Inc(Warburg, Pincus) 490.8 83.6% 51.9% 46.4%
03/02/1998 01/07/2000 Sunbeam Corp Coleman Co Inc 486.0 44.4% 58.6% 121.2%
04/20/1999 07/28/1999 Heller Financial Inc HealthCare Financial Partners 485.3 22.8% 25.0% 39.3%
01/19/1999 03/23/1999 Dura Automotive Systems Inc Excel Industries Inc 482.1 25.4% 41.0% 55.1%
07/15/1997 09/04/1997 Nortek Inc Ply-Gem Industries Inc 476.3 20.0% 16.4% 19.1%
08/23/1999 10/01/1999 Textron Inc Omniquip International Inc 474.5 60.0% 95.3% 152.6%
02/17/1998 05/27/1998 Applied Graphics Technologies Devon Group Inc 474.4 29.2% 32.0% 37.9%
04/30/1997 06/03/1997 GKN PLC Sinter Metals Inc 469.7 37.0% 38.3% 32.7%
05/05/1997 08/19/1997 Giant Eagle Inc Riser Foods Inc 468.5 11.6% 29.2% 26.8%
11/18/1997 01/08/1998 Cendant Corp Jackson Hewitt 468.2 26.5% 21.7% 47.8%
03/17/1998 07/31/1998 Investor Group BET Holdings Inc 462.3 53.7% 58.5% 58.2%
11/19/1997 02/27/1998 Texas Instruments Inc Amati Communications Corp 459.8 31.7% 44.1% 13.5%
06/24/1999 08/30/1999 CompuWare Corp Data Processing Resources Corp 452.1 95.9% 76.1% 42.8%
12/18/1998 01/26/1999 Rohm and Haas Co LeaRonal Inc 449.2 29.2% 37.4% 59.1%
02/14/1997 09/17/1997 Greenwich Air Services Inc UNC Inc 442.7 37.9% 41.2% 36.4%
06/21/1999 07/29/1999 National Service Industries Holophane 434.7 36.0% 31.9% 35.7%
05/13/1999 06/24/1999 Emerson Electric Co Daniel Industries Inc 429.2 8.6% 19.7% 31.8%
05/25/1999 08/17/1999 Kelso & Co Unilab Corp(Corning Inc) 429.0 20.0% 15.6% 39.7%
03/17/1997 09/04/1997 TCF Financial Corp Standard Financial,Chicago,IL 428.0 22.2% 28.2% 24.8%
01/30/1998 02/03/1999 Colony Capital Inc Harveys Casino Resorts 427.9 24.4% 23.8% 34.1%
03/24/1998 08/17/1998 DLJ Merchant Bkg Partners II Insilco Corp 425.3 4.7% 11.1% 12.9%
02/08/1999 03/24/1999 Computer Associates Intl Inc Computer Management Sciences 425.1 19.1% 64.7% 72.3%
09/20/1999 12/30/1999 Jefferson-Pilot Corp Guarantee Life Companies Inc 424.6 8.9% 8.5% 28.6%
09/29/1997 12/22/1997 Wallace Computer Services Inc Graphic Industries Inc 424.5 8.8% 19.2% 34.9%
09/30/1997 11/26/1997 AHC Acquisition Corp Arbor Health Care Co 424.2 15.4% 19.6% 26.8%
09/22/1997 12/05/1997 Conseco Inc Washington National Corp 424.0 2.7% 4.1% 12.2%
07/28/1997 02/02/1998 Intel Corp Chips and Technologies Inc 422.9 25.0% 32.1% 68.7%
05/13/1998 06/24/1998 Samsonite Corp Samsonite Corp 420.0 38.2% 46.5% 33.6%
07/07/1998 09/21/1998 Investor Group Republic Engineered Steels 417.8 56.8% 68.1% 45.0%
</TABLE>
DRAFT -4-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Cash Merger Transactions Between $100 Million to $1.5 Billion - For the
Period of 1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
02/02/1998 03/31/1998 Danaher Corp Pacific Scientific Co 417.5 20.4% 21.9% 28.7%
05/14/1999 10/01/1999 Allianz Life Ins Co (Allianz) Life USA Holding Inc 411.4 106.9% 97.6% 101.2%
02/22/1999 07/22/1999 Union Planters Corp,Memphis,TN Republic Banking Corp,Miami,FL 409.5 10.8% 28.9% 28.3%
04/27/1999 06/09/1999 Eastman Chemical Co Lawter International Inc 408.6 38.0% 62.0% 76.6%
07/19/1999 10/01/1999 Starlight Communications Vistana Inc 406.1 7.6% 14.2% 32.6%
02/25/1997 03/27/1997 IPALCO Enterprises Inc IPALCO Enterprises Inc 405.1 21.4% 22.5% 24.8%
06/03/1997 09/08/1997 Humana Inc Physician Corp of America 405.1 12.0% 12.0% 23.1%
03/26/1999 06/30/1999 Fremont Partners Juno Lighting Inc 404.9 21.2% 19.8% 21.6%
07/30/1997 09/04/1997 Laidlaw Inc EmCare Holdings Inc 398.3 -0.7% -1.0% 2.9%
08/13/1999 09/22/1999 Hochtief AG (RWE AG) Turner Corp 394.8 13.1% 6.0% 34.7%
12/27/1998 04/20/1999 Fairchild Corp Kaynar Technologies Inc 388.7 16.8% 27.8% 38.6%
06/14/1999 11/12/1999 Investor Group Maxxim Medical Inc 386.9 30.8% 38.2% 71.2%
11/25/1998 09/29/1999 Investor Group Sbarro Inc 386.4 3.3% 5.3% 2.8%
07/15/1999 11/23/1999 DLJ Merchant Bkg Partners II Merrill Corp 384.7 25.3% 37.5% 47.3%
06/07/1999 11/04/1999 Southern Union Co Pennsylvania Enterprises Inc 384.4 17.9% 20.7% 35.3%
02/19/1999 03/31/1999 Securitas AB Pinkerton's Inc 383.0 71.2% 71.9% 46.8%
11/08/1999 12/13/1999 Washington Post Co Washington Post Co 383.0 7.8% 8.0% 11.9%
02/11/1998 05/20/1998 Wolters Kluwer NV Waverly Inc 379.4 42.5% 50.7% 50.7%
04/30/1998 11/02/1998 Dow AgroSciences(Dow Chemical) Mycogen Corp(Dow AgroSciences) 379.3 41.8% 40.0% 52.4%
02/10/1997 03/31/1997 Vencor Inc TheraTx Inc 378.2 30.3% 35.4% 59.1%
02/06/1998 04/17/1998 Corporate Express Inc Corporate Express Inc 376.3 15.8% 21.6% -2.3%
03/02/1998 08/17/1998 El Paso Natural Gas Co DeepTech International 375.4 8.7% 9.8% 15.5%
05/19/1999 10/01/1999 Washington Mutual,Seattle,WA Long Beach Financial Corp 374.8 25.9% 24.0% 35.5%
05/10/1999 07/30/1999 ShopKo Stores Inc Pamida Holdings Corp 372.3 27.8% 55.9% 253.8%
07/14/1997 10/28/1997 Investor Group Katz Media Group 371.9 44.3% 69.2% 93.4%
02/24/1998 04/06/1998 Siebe PLC Wonderware Corp 362.7 50.0% 59.3% 79.4%
06/16/1997 08/07/1997 BT Industries AB Raymond Corp 360.4 -6.1% -1.5% 6.5%
05/11/1999 06/08/1999 Conectiv Inc Conectiv Inc 360.3 9.4% 8.5% 28.3%
02/03/1997 03/10/1997 Scotsman Industries Inc Kysor Industrial Corp 359.2 16.2% 17.0% 24.6%
06/08/1999 07/31/1999 Meggitt PLC Whittaker Corp 357.3 3.9% 4.4% 13.1%
03/11/1999 11/01/1999 Bay View Capital,San Mateo,CA Franchise Mortgage Acceptance 352.4 35.1% 32.1% 72.7%
04/29/1999 08/10/1999 Pentair Inc Essef Corp 352.1 -1.5% 8.4% 22.4%
06/29/1998 09/22/1998 Key Energy Group Inc Dawson Production Services Inc 350.9 40.7% 50.5% 66.7%
02/19/1998 10/15/1998 Hollywood Park Inc Casino Magic Corp 344.8 34.5% 32.1% 32.1%
01/29/1998 05/21/1998 AmeriServe Food Distn Inc ProSource Inc(Onex Corp) 343.3 126.4% 106.9% 100.0%
03/05/1998 05/20/1998 Xerox Corp Intelligent Electronics Inc 342.4 5.7% 19.2% 34.4%
07/26/1999 08/31/1999 Gartner Group(Dun&Bradstreet) Gartner Group(Dun&Bradstreet) 340.0 -1.1% 6.4% 9.8%
10/22/1998 04/29/1999 Bank of America National Trust BA Merchant Svcs(BankAmerica) 339.4 47.1% 56.2% 42.0%
08/11/1997 12/19/1997 Confetti Acquisition Inc Amscan Holdings Inc 334.9 36.1% 37.5% 46.7%
08/26/1997 09/25/1997 Ethyl Corp Ethyl Corp 333.7 5.7% 3.5% 2.8%
08/06/1998 04/16/1999 Safeway Inc Carr-Gottstein Foods Co 331.9 58.7% 48.1% 70.9%
08/07/1997 09/30/1997 Investor Group Outboard Marine Corp 330.1 -7.7% -2.4% 20.0%
</TABLE>
DRAFT -5-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Cash Merger Transactions Between $100 Million to $1.5 Billion - For the
Period of 1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
11/24/1997 01/07/1998 Cypress Group LLC General Host Corp 326.2 60.0% 63.0% 79.6%
01/12/1998 02/19/1998 Research Institute of America Computer Language Research Inc 325.4 60.7% 62.2% 69.8%
11/12/1997 03/03/1998 Tekni-Plex Inc PureTec Corp 324.6 28.7% 34.9% 31.8%
03/26/1997 09/03/1997 Hearst Broadcasting Group Argyle Television Inc 322.2 15.2% 16.5% 14.6%
01/22/1997 03/05/1997 Western Atlas Inc Norand Corp 320.8 72.9% 87.4% 94.2%
01/13/1997 09/02/1997 Zurich Versicherungs GmbH Zurich Reinsurance Centre 319.0 17.1% 18.5% 11.6%
10/26/1999 01/31/2000 Fox Paine & Co LLC Watkins-Johnson Co 319.0 30.0% 29.0% 24.6%
03/31/1997 10/01/1997 Astoria Finl,Lake Success,NY Greater NY Svgs Bk,New York,NY 318.1 40.7% 56.0% 62.3%
03/24/1997 04/28/1997 Elsevier Science MDL Information Systems 310.7 85.5% 43.8% 54.2%
09/25/1997 02/19/1998 Carpenter Technology Corp Talley Industries Inc 309.4 6.7% 11.0% 34.3%
06/30/1997 10/09/1997 Eaton Corp Fusion Systems Corp 308.6 11.4% 9.9% 24.3%
10/14/1999 10/25/1999 RailAmerica Inc RailTex Inc 308.4 28.8% 26.2% 47.8%
10/01/1999 11/29/1999 Kellogg Co Worthington Foods Inc 307.5 67.0% 101.0% 88.2%
06/24/1999 12/01/1999 Kelso & Co Citation Corp 307.4 18.3% 14.3% 26.5%
08/05/1999 09/19/1999 Corning Consumer Products Co Ekco Group Inc 304.6 55.6% 51.4% 55.6%
02/12/1998 03/12/1998 St Jude Medical Inc St Jude Medical Inc 304.0 9.6% 9.7% 22.8%
08/29/1997 12/29/1997 Rexel SA(Pinault-Printemps) Rexel Inc 302.0 19.2% 26.3% 21.6%
06/10/1999 07/30/1999 MGM Grand Inc(Tracinda Corp) MGM Grand Inc(Tracinda Corp) 300.0 20.8% 17.6% 2.2%
08/14/1997 12/29/1997 Madison Dearborn Partners Tuesday Morning Corp 298.6 22.7% 25.8% 11.1%
04/30/1999 06/11/1999 Aegis Group PLC Market Facts Inc 296.8 19.8% 33.3% 37.8%
04/06/1998 07/10/1998 Viad Corp MoneyGram Payment Systems Inc 294.0 11.5% 15.7% 42.4%
06/04/1998 11/03/1998 Avalon Cable of Michigan Inc Cable Michigan Inc 291.2 14.9% 14.9% 23.2%
03/23/1999 05/27/1999 ServiceMaster Co American Residential Services 283.8 31.4% 70.4% 67.3%
05/18/1999 11/30/1999 Investor Group O'Sullivan Industries Holdings 279.6 -3.6% -6.3% 7.2%
08/08/1997 12/22/1997 USF&G Corp Titan Holdings Inc 278.1 16.0% 19.1% 24.9%
06/22/1998 12/15/1998 JF Lehman & Co Special Devices Inc 277.8 -2.5% 1.9% 0.0%
11/04/1999 12/22/1999 Cementos Portland SA Giant Cement Holding Inc 277.0 50.8% 71.0% 37.0%
08/26/1999 10/08/1999 Procter & Gamble Co Recovery Engineering Inc 276.2 100.0% 107.4% 98.6%
12/31/1997 05/22/1998 Boykin Lodging Co Red Lion Inns LP 276.0 -6.4% -5.5% -3.4%
06/24/1997 10/14/1997 Louis Dreyfus Natural Gas American Exploration Co 275.5 13.0% 15.0% 21.6%
06/16/1997 08/29/1997 United Dominion Industries Ltd Core Industries Inc 275.2 26.6% 37.9% 49.3%
02/09/1998 04/16/1998 Fountain View(Heritage) Summit Care Corp 275.1 14.3% 31.3% 37.7%
07/09/1997 09/23/1997 CDSI Holding Corp Control Data Systems Inc 273.9 29.1% 30.6% 35.0%
10/08/1998 11/24/1998 Penton Media Inc Mecklermedia Corp 273.7 43.7% 52.6% 39.8%
04/08/1998 05/19/1998 Huntsman Packaging Corp Blessings Corp 269.7 18.7% 18.3% 34.9%
01/21/2000 03/03/2000 Kraft Foods(Kraft Inc/Philip) Balance Bar Co 269.6 37.3% 60.8% 76.4%
04/10/1997 06/26/1997 Compaq Computer Corp Microcom Inc 267.6 54.8% 91.2% 35.4%
06/17/1998 09/08/1998 Carlton Communications PLC Nimbus CD International Inc 264.9 7.0% 5.7% 10.8%
08/24/1999 02/02/2000 Willis Stein & Partners LP Aavid Thermal Technologies Inc 264.1 29.1% 23.3% 28.7%
04/15/1998 08/11/1998 Investcorp Harborside Healthcare Corp 263.2 18.3% 22.7% 5.8%
05/07/1997 06/03/1998 Unitrin Inc Reliable Life Insurance Co 261.1 51.1% 51.1% 52.1%
07/27/1999 09/29/1999 IBM Corp Mylex Corp 260.5 20.0% 17.8% 108.7%
</TABLE>
DRAFT -6-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Cash Merger Transactions Between $100 Million to $1.5 Billion - For the
Period of 1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
06/10/1998 07/31/1998 Wolters Kluwer NV Plenum Publishing Corp 258.0 6.5% 6.7% 10.7%
07/26/1999 11/12/1999 Biovail Corp International Fuisz Technologies Ltd 257.7 23.1% 45.5% 96.5%
02/25/1997 08/05/1998 Petrofina SA Fina Inc 257.0 19.7% 18.5% 21.5%
02/11/1998 06/10/1998 Sombrero Acquisition Corp MTL Inc 250.1 37.9% 38.5% 56.1%
10/02/1997 04/30/1998 Prometheus Senior Quarters Kapson Senior Quarters Corp 247.4 -0.9% 9.4% 1.8%
10/04/1999 12/16/1999 Technical Olympic SA Newmark Homes Corp 246.0 32.4% 34.8% 18.7%
01/27/1998 03/03/1998 Sage Group PLC State of the Art Inc 245.2 33.3% 35.4% 35.4%
11/20/1998 01/08/1999 Maxxim Medical Inc Circon Corp 243.7 6.2% 13.2% 0.0%
01/28/1997 05/21/1997 Monsanto Co Calgene Inc(Monsanto Co) 242.6 62.0% 60.0% 60.0%
11/13/1997 03/25/1998 Investor Group Chartwell Leisure Inc 240.8 11.3% 4.5% 11.3%
04/20/1998 09/15/1998 Kapson Senior Quarters Corp Atria Communities Inc 238.9 2.5% 7.3% -0.3%
06/30/1998 09/30/1998 Liberty Mutual Group Summit Holding Southeast Inc 233.4 28.2% 26.3% 28.2%
08/14/1997 09/16/1997 Omnicare Inc American Medserve Corp 233.2 2.5% 16.1% 25.8%
04/21/1998 08/25/1998 Investor Group PCA International Inc 232.5 23.3% 17.8% 20.5%
12/02/1998 04/23/1999 Pinault-Printemps Redoute Brylane Inc 230.6 45.2% 88.5% 44.1%
07/22/1999 10/29/1999 ReliaStar Financial Corp Pilgrim Capital Corp 229.4 -12.0% -0.1% 24.5%
03/11/1999 09/01/1999 International Game Technology Sodak Gaming Inc 228.4 25.0% 25.0% 34.5%
03/13/1998 07/31/1998 Investor Group MedCath Inc 227.8 15.2% 10.9% 34.5%
03/02/1998 07/01/1998 Huhtamaki Oy Sealright Co Inc 226.7 -2.2% -1.1% -5.4%
03/09/1999 06/29/1999 Anchor Gaming Inc Powerhouse Technologies Inc 222.4 35.1% 31.6% 52.2%
08/10/1998 09/21/1998 Amersham Pharmacia Biotech Ltd Molecular Dynamics Inc 222.2 36.7% 47.7% 100.0%
01/19/1999 02/25/1999 Louisiana-Pacific Corp ABT Building Products Corp 222.0 6.2% 29.0% 50.0%
09/25/1998 12/31/1998 Hasbro Inc Galoob Toys Inc 221.6 60.0% 73.0% 51.2%
09/19/1997 01/16/1998 Marshall Industries Sterling Electronics Corp 217.6 16.3% 30.2% 57.0%
08/27/1999 12/17/1999 Calpine Corp Cogeneration Corp of America 217.1 48.7% 43.9% 42.9%
02/17/1998 04/29/1998 Hadco Corp Continental Circuits Corp 216.9 41.6% 58.0% 64.1%
07/07/1998 12/23/1998 Dexter Corp Life Technologies Inc(Dexter) 215.8 25.2% 24.7% 19.0%
08/10/1999 09/20/1999 Teva Pharmaceutical USA Inc Copley Pharmaceutical Inc 214.8 23.9% 12.1% 9.3%
04/17/1998 07/21/1998 Sterling Commerce Inc Sterling Commerce-Managed Div 214.3 6.1% 12.5% 7.7%
06/11/1999 07/22/1999 Ion Beam Applications SA Sterigenics International Inc 213.7 38.5% 52.1% 78.5%
07/08/1997 09/30/1997 Jitney-Jungle Stores of Amer Delchamps Inc 213.6 -2.4% -0.8% 6.7%
09/14/1998 10/28/1998 Carmeuse Lime Inc(Carmeuse SA) Dravo Corp 212.9 87.4% 84.1% 60.0%
10/27/1998 12/14/1998 Allmerica Financial Corp Citizens Corp(Hanover Ins Co) 212.4 20.6% 17.2% 20.9%
03/04/1998 08/01/1998 Global Industrial Technologies AP Green Industries Inc 212.0 24.4% 37.5% 89.2%
06/23/1998 07/31/1998 MGM Grand Inc(Tracinda Corp) MGM Grand Inc(Tracinda Corp) 210.0 31.5% 25.3% 5.3%
11/05/1999 11/05/1999 Discount Investment Corp(IDB) PEC Israel Economic Corp 205.8 0.2% 1.0% 2.8%
04/10/1997 06/13/1997 Hedstrom Corp(Hedstrom Hldgs) ERO Inc 203.6 12.5% 16.9% 30.4%
05/12/1999 06/21/1999 Dyson-Kissner-Moran Corp Optek Technology Inc 202.6 29.9% 47.8% 81.3%
12/19/1997 05/01/1998 Cable Systems International IPC Information Systems Inc 201.7 14.3% 31.3% 14.3%
11/15/1999 12/21/1999 Hagemeyer NV Vallen Corp 201.0 26.6% 47.1% 83.5%
10/19/1998 04/07/1999 Nabors Industries Inc Bayard Drilling Technologies 200.5 -10.6% 3.8% -7.1%
07/31/1997 01/27/1998 Western Bancorp,California Santa Monica Bank 198.2 14.3% 17.6% 28.7%
</TABLE>
DRAFT -7-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Cash Merger Transactions Between $100 Million to $1.5 Billion - For the
Period of 1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
09/03/1998 02/28/1999 Markel Corp Gryphon Holdings Inc 197.0 33.3% 49.0% 20.6%
04/21/1999 07/23/1999 Real Software NV TAVA Technologies Inc 196.5 34.7% 39.1% 59.0%
05/11/1999 06/21/1999 JLG Industries Inc Gradall Industries Inc 196.2 14.3% 26.0% 36.2%
10/01/1998 04/29/1999 Summit Technology Inc Autonomous Technologies Corp 195.6 234.7% 271.4% 309.8%
06/07/1999 09/30/1999 Yellow Corp Jevic Transportation Inc 194.5 30.2% 45.5% 51.4%
05/28/1997 07/17/1997 Compass Group PLC DAKA International Inc 194.0 -33.3% -35.5% -7.7%
09/29/1998 11/10/1998 Wolter Kluwer US Corp Ovid Technologies Inc 193.4 23.0% 29.4% 46.8%
07/31/1997 09/24/1997 American Industrial Partners Bucyrus International Inc 193.3 33.3% 46.9% 71.4%
04/09/1998 05/15/1998 Richfood Holdings Inc Dart Group Corp 193.3 14.3% 11.9% 19.4%
06/02/1997 07/15/1997 Anthem Inc Acordia Inc(Anthem Inc) 193.2 12.7% 11.5% 26.0%
12/23/1997 04/01/1998 Outsourcing Solutions Inc Union Corp 193.0 14.5% 13.5% 23.5%
06/02/1999 08/30/1999 Geon Co(BF Goodrich Co) O'Sullivan Corp 191.8 30.7% 34.2% 44.1%
03/21/1999 07/01/1999 Viacom Inc(Natl Amusements) Spelling Entertainment Group 191.6 8.3% 43.1% 54.5%
08/14/1997 09/24/1997 MedPartners Inc Talbert Medical Management 189.0 10.5% 18.9% 37.0%
08/25/1997 10/21/1997 Household International Inc ACC Consumer Finance Corp 186.9 35.8% 34.7% 29.6%
08/28/1997 02/25/1998 Wellsford Real Properties Inc Value Property Trust 186.6 25.0% 20.9% 18.7%
05/10/1999 06/14/1999 GN Great Nordic Ltd ReSound Corp 185.4 21.9% 52.4% 91.0%
10/16/1997 02/12/1998 Hartford Financial Services Omni Insurance Group Inc 184.7 78.9% 75.8% 130.9%
10/19/1998 03/01/1999 Intel Corp Shiva Corp 184.2 41.2% 92.0% 45.5%
04/16/1997 05/20/1997 Briggs & Stratton Corp Briggs & Stratton Corp 183.1 19.3% 14.6% 11.8%
09/12/1997 12/09/1997 Tivoli Systems Inc(IBM Corp) Unison Software Inc 183.0 9.1% 25.0% 22.4%
06/17/1997 07/25/1997 CCL Industries Inc Seda Specialty Packaging Corp 182.6 31.8% 36.5% 52.6%
07/17/1998 09/02/1998 DLJ Merchant Banking Inc DeCrane Aircraft Holdings Inc 181.5 30.5% 28.7% 33.8%
11/04/1999 02/15/2000 Investor Group Cleveland Indians Baseball Co 180.6 39.5% 128.0% 155.3%
03/06/1998 09/11/1998 Protective Life Corp United Dental Care Inc 180.4 20.5% 49.2% 57.4%
12/22/1998 01/25/1999 PEP Boys-Manny Moe & Jack Inc PEP Boys-Manny Moe & Jack Inc 180.4 16.4% 18.5% 8.9%
02/25/1997 07/07/1997 Pacific Century Financial Corp CU Bancorp,Encino,California 178.4 15.8% 18.0% 25.2%
12/11/1998 02/16/1999 Cracker Barrel Old Country Str Logans Roadhouse Inc 178.3 13.9% 10.3% 33.8%
07/15/1999 09/01/1999 Sterling Software Inc Information Advantage Software 177.5 18.2% 70.5% 56.4%
07/15/1997 10/02/1997 Axiohm SA DH Technology Inc 175.0 57.5% 56.3% 57.5%
11/21/1997 01/20/1998 Co-Steel Inc New Jersey Steel(Von Roll) 173.5 162.9% 170.6% 166.7%
11/02/1998 12/30/1998 Celestica Inc Intl Manufacturing Svcs Inc 173.2 42.9% 172.6% 83.1%
02/15/1999 07/01/1999 JW Childs Equity Partners LP American Safety Razor Co 173.1 43.8% 33.6% 19.0%
04/27/1999 08/13/1999 InterVoice Inc Brite Voice Systems Inc 172.2 26.9% 33.2% 67.5%
06/05/1997 07/14/1997 Intermedia Communications Inc DIGEX Inc 171.6 19.5% 35.9% 31.6%
09/23/1999 11/04/1999 Textron Financial Corp Litchfield Financial Corp 171.1 38.0% 36.1% 24.8%
06/09/1999 07/20/1999 Ford Motor Co Automobile Protection Corp 169.9 9.5% 18.2% 44.4%
03/31/1997 06/03/1997 Moore Corp Ltd Peak Technologies Group Inc 169.8 108.7% 97.3% 65.5%
02/17/1998 08/17/1998 HB Acquisition Corp Bell Sports Corp 165.7 13.9% 13.1% 8.6%
05/27/1999 09/01/1999 Carlyle Group LP Empi Inc 165.3 27.3% 27.7% 16.8%
02/09/1998 06/30/1998 Banco Bilbao Vizcaya SA PonceBank 164.5 12.6% 14.1% 25.8%
09/03/1997 02/24/1998 Peoples Bk of Bridgeport,CT Norwich Financial Corp,CT 164.0 -0.5% 15.4% 30.4%
</TABLE>
DRAFT -8-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Cash Merger Transactions Between $100 Million to $1.5 Billion - For the
Period of 1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
10/22/1998 02/12/1999 Lighthouse Weston Corp Lumen Technologies Inc 160.5 29.2% 51.2% 53.1%
05/07/1999 09/29/1999 Kirtland Capital Partners Instron Corp 159.9 36.4% 29.4% 31.3%
01/19/2000 02/09/2000 Elyo(Suez Lyonnaise des Eaux) Trigen Energy Corp 159.2 38.2% 42.4% 31.9%
10/17/1997 12/29/1997 Emerson Electric Co Computational Systems Inc 158.6 45.1% 48.3% 62.5%
03/15/1999 06/17/1999 Vulcan Ventures Inc Go2Net Inc 158.5 3.4% 34.8% -6.7%
10/15/1999 01/05/2000 El Paso Energy Corp Crystal Gas Storage Inc 158.4 26.7% 29.2% 26.0%
11/03/1997 05/22/1998 FirstMerit Corp CoBancorp Inc 157.3 10.6% 30.9% 52.1%
07/28/1999 09/07/1999 Caradon PLC(MB Group PLC) Easco Inc(American Industrial) 154.7 26.7% 35.1% 43.9%
11/12/1998 03/22/1999 Ames Department Stores Inc Hills Stores Co 153.4 14.3% 9.1% -11.1%
05/12/1998 06/26/1998 Primark Corp Primark Corp 153.0 23.4% 16.9% -1.9%
07/28/1998 06/18/1999 Investor Group CompDent Corp 152.1 11.1% 9.1% -4.0%
10/17/1997 02/27/1998 Investor Group ATC Group Services Inc 150.0 0.0% -8.1% 10.3%
11/19/1998 01/05/1999 EM Industries Inc(Merck AG) CN Biosciences Inc 149.7 8.1% -4.3% -0.5%
06/22/1998 10/02/1998 Schwinn Holdings Corp GT Bicycles Inc 149.6 68.4% 77.8% 36.2%
07/30/1999 10/21/1999 Corning Consumer Products Co General Housewares Corp 148.6 43.3% 49.4% 45.1%
09/03/1998 03/19/1999 Republic Industries Inc Cross-Continent Auto Retailers 147.9 66.2% 67.8% 55.6%
06/20/1997 10/23/1997 Forcenergy Inc Edisto Resources Corp 147.7 -6.6% -6.6% -0.4%
04/15/1998 05/29/1998 Siebe PLC Simulation Sciences Inc 146.5 24.0% 16.8% 11.1%
07/03/1997 09/26/1997 Port Royal Holdings Inc Krystal Co 145.4 132.0% 169.8% 176.2%
05/06/1999 06/18/1999 Falcon Products Inc Shelby Williams Industries Inc 145.2 20.0% 24.5% 66.0%
09/22/1999 03/01/2000 City National Corp,California Pacific Bank NA,CA 145.0 42.3% 49.7% 54.7%
11/22/1999 02/02/2000 GR Acquisition Corp Garden Ridge Corp 144.4 58.6% 65.8% 70.4%
02/23/1999 03/31/1999 First Technology PLC Control Devices Inc 142.4 20.4% 19.3% 6.6%
08/28/1997 10/10/1997 Applied Power Inc Versa Technologies Inc 141.9 36.8% 33.1% 31.3%
05/08/1998 06/15/1998 Agrobios(Desc SA de CV) Authentic Specialty Foods Inc 141.9 6.3% 13.3% 37.4%
11/19/1998 02/22/1999 American Airlines Inc(AMR) Reno Air Inc 141.3 6.9% 15.9% 44.2%
08/02/1999 09/03/1999 Inamed Corp Collagen Aesthetics Inc 140.8 45.3% 53.8% 32.7%
08/14/1997 12/05/1997 Comforce Corp Uniforce Services Inc 140.7 37.6% 37.6% 52.6%
08/12/1997 09/17/1997 Steris Corp Isomedix Inc 139.8 5.8% 15.5% 13.9%
01/20/1998 10/05/1998 Albertson's Inc Buttrey Food and Drug Stores 139.2 44.2% 44.2% 47.6%
01/22/1998 09/29/1998 Koninklijke KNP BT NV BT Office Products Intl Inc 138.1 32.5% 78.9% 78.9%
10/16/1998 12/15/1998 Affiliated Computer Services BRC Holdings Inc 137.2 17.1% 16.9% 15.2%
10/21/1997 12/30/1997 Kevco Inc Shelter Components Corp 136.6 20.7% 25.6% 13.8%
02/10/1999 03/26/1999 GlobeGround GmbH Hudson General Corp 134.7 39.1% 38.2% 52.0%
08/11/1999 11/24/1999 VS&A Commun Partners III LP HCIA Inc(AMBAC Inc) 134.7 31.3% 32.3% 4.1%
08/15/1997 10/06/1997 T/SF Communications Corp Official Information Co 134.1 3.9% 4.2% 7.3%
10/21/1999 02/04/2000 United Technologies Corp Cade Industries Inc 133.2 30.3% 26.3% 55.4%
11/26/1997 02/25/1998 Investor Group Universal Hospital Services 133.0 29.2% 29.2% 25.3%
02/09/1998 03/09/1998 Shaw Industries Inc Shaw Industries Inc 132.8 12.4% 13.6% 13.6%
08/04/1998 12/31/1998 Guidant Corp InControl Inc 132.1 21.5% 50.0% 118.2%
10/16/1998 02/12/1999 Affiliated Computer Services BRC Holdings Inc 131.9 17.1% 16.9% 15.2%
12/17/1997 01/23/1998 InvaCare Corp Suburban Ostomy Supply Co Inc 130.8 8.0% 13.3% 13.3%
</TABLE>
DRAFT -9-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Cash Merger Transactions Between $100 Million to $1.5 Billion - For the
Period of 1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
09/11/1998 06/22/1999 Suiza Foods Corp Broughton Foods Co 130.8 -4.3% -2.9% -2.9%
08/25/1997 10/03/1997 Cambrex Corp BioWhittaker Inc 130.5 17.8% 38.9% 47.7%
02/01/1999 08/02/1999 Independence Community Bank Broad Natl Bancorp,Newark,NJ 130.4 18.1% 24.7% 33.3%
07/28/1998 09/10/1998 Network Associates Inc CyberMedia Inc 130.1 25.6% 38.2% 117.1%
06/14/1999 08/02/1999 Cadence Design Systems Inc OrCAD Inc 129.5 38.7% 57.6% 70.5%
12/17/1998 02/04/1999 Moriarty Acquisition Corp Rival Co 129.4 22.9% 25.0% 93.0%
03/02/1998 04/30/1998 Sunbeam Corp First Alert Inc 129.2 68.0% 90.9% 110.0%
11/05/1998 12/09/1998 Alliant Techsystems Inc Alliant Techsystems Inc 129.2 4.3% 11.1% 14.9%
12/10/1998 06/01/1999 M&T Bank Corp,Buffalo,New York FNB Rochester Corp,NY 127.8 6.0% 55.3% 85.9%
06/17/1997 09/25/1997 Leonard Green & Partners LP Hechinger Co 127.0 -14.3% -7.7% -11.1%
06/16/1999 08/26/1999 Tyco International Ltd Central Sprinkler Corp 125.5 34.1% 50.0% 77.8%
09/08/1998 12/15/1998 Investor Group PEC Israel Economic Corp 125.0 31.5% 28.0% 23.7%
02/10/1998 03/11/1998 Liberty Corp Liberty Corp 124.8 11.2% 15.2% 11.5%
02/09/1998 06/18/1998 USA Waste Services Inc American Waste Services 122.1 100.0% 156.0% 166.7%
11/16/1998 06/30/1999 Temple-Inland Inc,Diboll,Texas HF Bancorp Inc,Hemet,CA 121.6 8.8% 10.4% 39.6%
04/10/1997 05/08/1997 SPX Corp SPX Corp 120.4 22.1% 32.9% 16.1%
06/11/1999 07/21/1999 Solvay Pharmaceuticals SA Unimed Pharmaceuticals Inc 119.9 18.5% 12.9% 62.7%
07/12/1999 12/17/1999 HIG Capital LLC Happy Kids Inc 119.6 9.5% 28.7% -18.6%
03/09/1998 04/30/1998 Western Atlas Inc 3-D Geophysical Inc 117.6 8.7% 16.1% 24.5%
07/25/1997 08/28/1997 Constellation Capital Partners Imo Industries Inc 117.3 18.7% 20.0% 22.6%
09/18/1997 12/16/1997 Orion Capital Corp Guaranty National Corp 117.2 10.8% 23.9% 27.7%
12/29/1997 02/09/1998 Tyco International Ltd Holmes Protection Group Inc 117.1 -5.6% -5.6% -13.9%
04/01/1999 08/15/1999 Vivendi SA Aqua Alliance Inc 117.1 28.9% 19.0% 101.7%
07/28/1999 08/27/1999 UGI Corp UGI Corp 117.0 24.2% 22.4% 28.8%
01/21/1997 07/09/1997 Mafco Holdings Inc Mafco Consolidated Grp(Mafco) 116.8 23.5% 23.5% 27.6%
11/10/1998 12/16/1998 Roanoke Electric Steel Steel of West Virginia Inc 116.8 75.5% 100.0% 79.2%
11/12/1999 02/09/2000 TriPoint Global Communications Vertex Communications Corp 116.0 48.5% 37.5% 71.7%
11/10/1998 12/22/1998 Select Medical Corp Intensiva Healthcare Corp 115.2 54.0% 60.4% 92.5%
09/23/1998 12/17/1998 Usinor SA J&L Specialty Steel Inc 115.0 100.0% 112.5% 37.8%
07/23/1997 12/18/1997 Newport Invest(Apollo Mgmt) Alliance Imaging Inc 114.2 7.3% 3.5% 14.3%
05/19/1999 09/03/1999 Guardian Life Ins Co of Amer First Commonwealth Inc 113.7 34.2% 39.4% 70.9%
05/29/1998 10/20/1998 Innovative Communication Co Emerging Communications Inc 112.3 46.4% 42.6% 54.7%
08/21/1998 09/23/1998 Albemarle Corp Albemarle Corp 112.1 6.8% 5.8% -6.9%
11/24/1998 03/24/1999 BGI Acquisition LLC Besicorp Group Inc 111.8 11.2% 11.6% 6.4%
01/07/1999 02/17/1999 Illinois Tool Works Inc Trident International Inc 111.7 78.4% 83.3% 78.4%
06/17/1997 07/24/1997 Monterey Resources Inc McFarland Energy Inc 111.2 11.6% 41.3% 44.8%
09/09/1998 05/03/1999 FBOP Corp,Oak Park,Illinois Calumet Bancorp Inc 110.6 18.5% 19.6% 3.2%
03/11/1998 05/15/1998 International Home Foods Inc Grist Mill 110.3 18.4% 21.5% 47.8%
11/02/1998 12/10/1998 Danone Group AquaPenn Spring Water Co Inc 110.3 34.2% 100.0% 160.0%
11/09/1998 12/22/1998 Stonington Partners Inc Global Motorsport Group Inc 109.0 13.5% 33.8% 31.1%
04/12/1999 01/07/2000 Independence Community Bank Statewide Financial Corp,NJ 108.9 20.2% 33.7% 42.6%
02/04/1998 03/15/1999 Playboy Enterprises Intl Inc Spice Entertainment Cos Inc 108.8 17.6% 17.6% 42.8%
</TABLE>
DRAFT -10-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Cash Merger Transactions Between $100 Million to $1.5 Billion - For the
Period of 1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
03/08/1999 06/24/1999 Anteon Corp Analysis & Technology Inc 108.5 18.9% 16.2% 23.8%
03/16/1998 10/30/1998 FPK LLC Norwood Promotional Products 107.8 19.1% 19.1% 23.6%
01/24/1997 07/02/1997 American Standard Inc INCSTAR Corp(Sorin Biomedical) 106.3 42.9% 53.2% 68.5%
06/29/1998 12/22/1998 Global Motorsport Group Inc Global Motorsport Group Inc 105.8 3.6% 5.5% 3.0%
08/07/1998 09/14/1998 SFX Entertainment Inc Magicworks Entertainment Inc 105.3 12.3% 16.4% 64.1%
05/28/1998 07/07/1998 Bowne & Co Inc Donnelley Enterprise Solutions 105.2 60.8% 61.5% 83.6%
10/17/1997 02/09/1998 Linsalata Capital Partners II Tranzonic Cos 104.8 -1.5% -2.9% 4.5%
05/27/1997 08/08/1997 Columbia Natural Resources Inc Alamco Inc 102.8 7.7% 11.5% 16.7%
12/15/1997 02/08/1999 EVI Inc Christiana Cos Inc 102.8 -14.7% -16.5% -15.0%
11/24/1997 02/03/1998 Davel Communications Group Inc Communications Central Inc 102.4 30.2% 25.4% 12.0%
10/01/1998 01/07/1999 Arrow Electronics Inc Richey Electronics Inc 101.8 52.7% 68.0% 127.0%
01/06/1998 04/01/1998 Oakwood Homes Corp Schult Homes Corp 101.4 1.1% 10.4% 19.2%
08/26/1998 01/08/1999 Salton/Maxim Houswares Inc Toastmaster Inc 101.2 3.7% 21.7% 36.6%
06/18/1999 07/26/1999 Littlejohn & Co LLC Durakon Industries Inc 101.2 32.6% 29.3% 24.9%
02/25/1998 09/30/1998 Prometheus Southeast Retail FAC Realty Trust Inc 100.0 7.0% 21.6% 29.9%
12/03/1998 04/21/1999 Texas Pacific Group Inc Denbury Resources Inc 100.0 54.0% 13.5% -9.2%
</TABLE>
<TABLE>
<S> <C> <C> <C>
-----------------------------------------------------------------------------
Pinnacle 29.9% 50.4% 29.4%
Trimmed Mean(2) 24.4% 30.3% 36.5%
Average 28.0% 34.4% 40.6%
Median 22.2% 28.4% 34.5%
-----------------------------------------------------------------------------
</TABLE>
____________________
Source: Securities Data Company, Inc.
(1) Transaction Value is defined by SDC as reported deal value, which includes
the amount paid for all common stock, common stock equivalents, preferred
stock, debt, options, assets, warrants and stake purchases made within six
months of the announcement date of the transaction.
(2) Trimmed average excludes the highest 10% and lowest 10% premiums paid.
DRAFT -11-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Merger Transactions Between $100 Million to $1.5 Billion - For the Period of
1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
12/15/1998 01/21/1999 EMAP PLC Petersen Companies Inc $1,494.8 8.6% 43.9% 39.8%
05/04/1999 06/24/1999 Getronics NV Wang Laboratories Inc 1,490.2 14.7% 22.8% 41.4%
02/09/1998 06/15/1998 United States Filter Corp Culligan Water Technologies 1,474.3 57.5% 62.9% 27.3%
10/20/1997 03/06/1998 Kinder Morgan Energy Partners Santa Fe Pacific Pipeline 1,473.0 31.8% 33.2% 38.6%
01/20/1998 05/27/1998 Investor Group Regal Cinemas Inc 1,462.7 14.3% 10.7% 34.8%
11/17/1998 03/30/1999 Prologis Trust Meridian Industrial Trust Inc 1,456.8 12.7% 14.9% 9.0%
06/30/1997 12/23/1997 JP Foodservice Inc Rykoff-Sexton Inc 1,435.9 24.4% 26.0% 27.6%
08/18/1997 11/04/1997 Texaco Inc Monterey Resources Inc 1,435.3 39.4% 39.4% 54.1%
05/17/1999 07/23/1999 Synetic Inc Medical Manager Corp 1,411.3 76.9% 80.5% 99.0%
08/09/1999 10/12/1999 EMC Corp Data General Corp 1,410.4 72.7% 63.4% 31.1%
06/18/1999 01/11/2000 Citizens Financial Group,RI UST Corp,Boston,MA 1,402.6 33.2% 34.7% 33.3%
12/18/1998 07/02/1999 ALLTEL Corp Aliant Communications Inc 1,397.3 26.7% 26.2% 30.4%
07/12/1999 11/16/1999 Royal & Sun Alliance Insurance Orion Capital Corp 1,390.6 22.7% 30.5% 68.8%
01/23/1997 05/19/1997 Kohlberg Kravis Roberts & Co Amphenol Corp 1,390.4 12.4% 16.9% 26.1%
05/21/1999 09/30/1999 AK Steel Holding Corp Armco Inc 1,390.3 19.0% 13.9% 27.5%
01/11/1999 04/26/1999 Bergen Brunswig Corp PharMerica Inc 1,385.0 37.5% 55.4% 130.6%
09/15/1999 01/07/2000 Microsoft Corp Visio Corp 1,374.9 27.7% 38.0% 45.3%
09/28/1999 12/10/1999 Chase Manhattan Corp,NY Hambrecht & Quist Group Inc 1,368.0 21.8% 26.2% 30.9%
11/19/1997 04/01/1998 Total Renal Care Holdings Inc Renal Treatment Centers Inc 1,362.6 8.6% 17.0% 26.9%
05/20/1997 09/02/1997 Tyco International Ltd Keystone International Inc 1,361.5 84.2% 85.3% 102.5%
03/17/1997 08/20/1997 News Corp Ltd Heritage Media Corp 1,351.8 69.1% 72.6% 69.1%
07/19/1999 01/06/2000 AirTouch Cellular CommNet Cellular Inc 1,349.8 2.5% -3.3% 44.6%
01/14/1997 04/30/1997 KLA Instruments Corp Tencor Instruments Inc 1,343.6 33.1% 42.2% 70.2%
01/21/1997 07/08/1997 First Maryland Bancorp,MD Dauphin Deposit Corp,PA 1,343.4 32.2% 43.3% 49.0%
11/20/1998 10/19/1999 AES Corp CILCORP Inc 1,332.7 21.5% 23.2% 27.1%
04/21/1998 06/24/1998 GEC PLC Tracor Inc 1,323.5 10.0% 16.8% 25.0%
08/17/1998 12/31/1998 Waste Management Inc Eastern Environmental Services 1,276.2 5.5% 3.9% -1.8%
06/18/1998 09/24/1998 NOVA Corp PMT Services Inc 1,266.6 22.0% 35.5% 32.0%
04/19/1999 08/19/1999 Investor Group Blount International Inc 1,257.3 8.4% 8.1% 11.6%
06/16/1997 10/10/1997 Genesis Eldercare Multicare Cos Inc 1,249.1 9.3% 13.7% 34.9%
04/23/1997 06/25/1997 Hewlett-Packard Co VeriFone Inc 1,245.1 67.6% 50.2% 43.8%
02/18/1997 06/27/1997 NGC Corp Destec Energy Inc 1,222.4 82.3% 80.4% 63.4%
01/20/1997 04/08/1997 Boston Scientific Corp Target Therapeutics Inc 1,218.3 63.6% 65.9% 93.7%
09/12/1997 02/25/1998 American General Corp Western National Corp 1,215.0 9.6% 7.4% 14.4%
03/16/1998 08/03/1998 CapStar Hotel Co American General Hospitality 1,211.8 56.6% 58.4% 52.0%
09/08/1997 02/02/1998 WorldCom Inc CompuServe Inc(H&R Block) 1,185.9 1.4% 2.9% 8.4%
02/16/1999 06/18/1999 XL Capital Ltd NAC Re Corp 1,183.0 22.2% 13.3% 17.9%
10/21/1999 02/01/2000 Iron Mountain Inc Pierce Leahy Corp 1,174.4 29.7% 34.6% 56.2%
04/26/1999 10/01/1999 First Union Corp, Charlotte,NC EVEREN Capital Corp 1,172.2 28.5% 34.1% 52.1%
03/03/1999 07/07/1999 Welsh Carson Anderson & Stowe Concentra Managed Care Inc 1,164.3 41.9% 56.2% 58.1%
02/26/1999 06/23/1999 Koninklijke Philips Electronic VLSI Technology Inc 1,162.5 95.3% 115.4% 76.8%
06/02/1999 08/09/1999 United Pan-Europe Comm NV @Entertainment Inc 1,154.6 52.0% 47.6% 120.3%
</TABLE>
DRAFT -1-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Merger Transactions Between $100 Million to $1.5 Billion - For the Period of
1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
10/13/1997 12/01/1997 McAfee Associates Inc Network General Corp 1,142.5 19.6% 25.3% 42.7%
01/15/1997 08/06/1997 Columbia/HCA Healthcare Corp Value Health Inc 1,132.3 1.2% 0.6% 0.0%
05/05/1997 09/30/1997 Huntington Bancshares Inc, OH First Michigan Bank Corp,MI 1,131.2 36.2% 46.9% 43.8%
07/26/1999 08/03/1999 Shareholders Quantum Corp 1,129.6 -72.7% -74.7% -71.0%
07/12/1999 08/13/1999 Accor SA Red Roof Inns Inc 1,128.1 24.2% 26.4% 31.9%
06/16/1999 07/15/1999 Cendant Corp Cendant Corp 1,125.0 13.9% 18.4% 19.2%
06/12/1998 07/21/1998 Armstrong World Industries Inc Triangle Pacific Corp 1,124.3 26.1% 26.5% 24.0%
04/14/1999 10/17/1999 Aptco LLC Berkshire Realty Co Inc 1,122.8 25.6% 29.8% 27.3%
09/28/1998 12/10/1998 HBO & Co Access Health Inc 1,118.3 39.2% 44.4% 81.7%
03/14/1997 10/01/1997 Marshall & Ilsley, Milwaukee,W Security Capital,Milwaukee,WI 1,115.8 31.4% 32.6% 39.9%
06/09/1997 07/15/1997 Atlas Copco North America Inc Prime Service Inc 1,112.0 28.6% 29.9% 31.3%
11/25/1998 03/30/1999 Seagull Energy Corp Ocean Energy Inc 1,094.2 5.5% 17.7% -15.6%
04/30/1998 07/28/1999 Nevada Power Co Sierra Pacific Resources Corp 1,081.3 -1.4% -1.6% -10.6%
12/13/1998 05/28/1999 Placer Dome Inc Getchell Gold Corp 1,078.7 14.3% 139.2% 90.7%
05/26/1998 02/17/1999 Roslyn Bancorp Inc, Roslyn, NY T R Financial Corp,NY 1,078.0 46.6% 58.1% 62.4%
05/15/1997 10/29/1997 Associated Banc, Green Bay, WI First Finl,Stevens Point,WI 1,074.7 5.0% 6.0% 12.2%
09/02/1999 10/08/1999 Dyckerhoff AG Lone Star Industries Inc 1,074.6 44.7% 50.7% 34.7%
09/25/1999 11/18/1999 Grupo Mexicano de Desarrollo ASARCO Inc 1,073.3 26.3% 39.6% 31.1%
08/10/1998 10/15/1998 Allied Waste Industries Inc American Disposal Services Inc 1,066.6 16.2% 14.9% -4.3%
03/18/1998 06/30/1998 Southdown Inc Medusa Corp 1,052.5 17.2% 24.3% 35.3%
05/08/1997 11/04/1997 Apollo Management LP Living Centers of America Inc 1,048.2 17.8% 22.7% 41.5%
06/06/1997 10/14/1997 Excel Communications Inc Telco Communications Group Inc 1,046.5 32.9% 23.8% 26.4%
06/16/1998 09/30/1998 United Rentals Inc US Rentals Inc 1,046.3 5.1% -0.0% 1.6%
02/08/1999 07/20/1999 Chubb Corp Executive Risk Inc 1,044.9 63.0% 53.2% 33.9%
04/27/1998 06/01/1998 Lucent Technologies Inc Yurie Systems Inc 1,044.1 11.1% 17.4% 49.7%
12/23/1997 03/27/1998 Ocean Energy Inc United Meridian Corp 1,031.8 -13.9% -9.8% -9.7%
05/05/1997 08/01/1997 Northrop Grumman Corp Logicon Inc 1,027.5 75.7% 84.2% 102.7%
01/07/1997 02/25/1997 MedTrans Inc (Laidlaw Inc) American Medical Response Inc 1,011.1 21.2% 23.1% 36.8%
06/14/1999 11/26/1999 DoubleClick Inc Abacus Direct Corp 1,006.0 25.1% 25.1% 16.9%
11/02/1998 03/30/1999 BMC Software Inc Boole & Babbage Inc 1,000.1 21.8% 22.4% 62.2%
01/16/1998 06/02/1998 US Office Products Co US Office Products Co 1,000.0 46.9% 70.1% 61.8%
07/26/1999 12/23/1999 Shire Pharmaceuticals Group Roberts Pharmaceutical Corp 998.8 19.9% 28.9% 55.7%
01/16/1997 05/30/1997 Equity Residential Pptys Trust Wellsford Residential Ppty 995.5 7.6% 9.2% 9.8%
11/05/1997 01/16/1998 Consolidated Stores Corp Mac Frugal's Bargains 994.1 2.9% 18.5% 23.5%
04/29/1999 06/17/1999 United News & Media PLC CMP Media Inc 994.0 15.1% 27.9% 25.6%
09/29/1997 12/01/1997 Suiza Foods Corp Morningstar Group Inc 972.0 14.6% 11.5% 53.5%
06/08/1998 10/15/1998 Healthcare Realty Trust Inc Capstone Capital Corp 971.4 5.1% 4.5% 1.0%
08/03/1998 10/20/1998 Ascend Communications Inc Stratus Computer Inc 969.7 19.1% 53.3% 33.4%
02/09/1998 03/31/1998 CVS Corp Arbor Drugs Inc 966.7 1.9% 14.1% 18.1%
04/07/1997 07/30/1997 Rational Software Corp Pure Atria Corp 958.4 18.5% 23.3% 23.8%
05/19/1999 11/16/1999 US Bancorp, Minneapolis, MN Western Bancorp,California 958.0 13.8% 9.3% 31.3%
10/10/1997 11/19/1997 Kennametal Inc Greenfield Industries Inc 957.0 19.7% 26.7% 44.1%
</TABLE>
DRAFT -2-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Merger Transactions Between $100 Million to $1.5 Billion - For the Period of
1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
05/17/1999 10/01/1999 Charter One Finl, Cleveland,OH St. Paul Bancorp,Chicago,IL 954.6 -7.0% -5.9% -0.8%
08/07/1997 01/21/1998 Investor Group Fisher Scientific Intl Inc 950.6 -5.2% -0.4% 5.5%
06/28/1999 12/07/1999 Investor Group Big Flower Holdings Inc 945.4 12.0% 9.3% 18.1%
02/17/1999 02/10/2000 SCANA Corp PSNC 941.0 45.1% 45.1% 32.0%
04/07/1997 08/08/1997 Parker & Parsley Petroleum Co Mesa Inc 938.7 24.3% -30.4% -27.5%
08/28/1997 12/23/1997 Equity Residential Pptys Trust Evans Withycombe Residential 932.4 14.2% 21.4% 18.9%
06/02/1999 09/23/1999 Westwood One Inc Metro Networks Inc 926.1 -5.4% -7.9% 4.9%
07/30/1997 09/18/1997 Fujitsu Ltd Amdahl Corp 924.8 5.0% 22.5% 25.6%
07/07/1997 10/21/1997 Integrated Health Services Inc RoTech Medical Corp 918.9 19.8% 12.7% 22.2%
02/27/1997 08/01/1997 Summit Bancorp, Princeton, NJ Collective Bancorp Inc 916.1 15.6% 22.9% 29.6%
09/05/1997 11/26/1997 Misys PLC Medic Computer Systems Inc 915.8 7.7% 12.0% 25.0%
07/08/1999 11/02/1999 Allstate Corp American Heritage Life Invt 914.4 21.1% 25.9% 40.2%
12/11/1997 01/20/1998 MascoTech Inc TriMas Corp 911.7 12.7% 10.0% 19.0%
12/01/1999 03/01/2000 Informix Corp Ardent Software Inc 909.2 46.7% 51.4% 80.6%
11/26/1997 04/23/1998 Teleport Communications Group ACC Corp 906.8 14.9% 19.0% 84.3%
08/03/1999 11/04/1999 Health Care Property Investors American Health Properties Inc 904.9 11.0% 9.5% -0.6%
10/06/1997 02/17/1998 HF Ahmanson & Co,Irwindale,CA Coast Savings Financial Inc,CA 902.7 -14.5% -12.5% -7.0%
02/04/1997 05/06/1997 WMX Technologies Inc WMX Technologies Inc 900.0 -17.0% -12.4% -9.1%
06/14/1999 11/11/1999 Vivendi SA Superior Services Inc 897.7 13.7% 25.6% 20.3%
09/18/1998 11/20/1998 GE Medical Systems Marquette Medical Systems Inc 897.3 95.9% 103.3% 83.5%
10/28/1997 04/01/1998 First Empire State Corp, NY ONBANCorp Inc,Syracuse,NY 893.0 18.0% 12.9% 21.4%
08/04/1998 10/08/1998 AlliedSignal Inc AMP Inc 890.0 55.5% 50.8% 30.4%
11/16/1998 01/06/1999 Vulcan Materials Co CalMat Co 886.6 14.0% 16.7% 33.0%
10/09/1998 02/17/1999 InaCom Corp Vanstar Corp 886.2 28.5% 31.4% 24.8%
11/17/1999 02/08/2000 Kimberly-Clark Corp Safeskin Corp 882.1 28.0% 45.0% 66.6%
04/14/1997 11/12/1997 Neptune Orient Lines Ltd APL Ltd 878.5 55.8% 65.4% 42.6%
09/02/1998 12/21/1998 DST Systems Inc USCS International Inc 877.8 43.6% 35.0% 59.9%
04/05/1999 11/22/1999 Investor Group Sunstone Hotel Investors Inc 875.4 41.9% 43.1% 40.7%
08/21/1997 01/14/1998 Comverse Technology Inc Boston Technology Inc 873.9 -0.3% 16.2% 10.4%
01/14/1998 06/19/1998 Kimco Realty Corp Price REIT Inc 870.6 13.5% 14.3% 18.2%
05/23/1997 10/06/1997 Price Communications Corp Palmer Wireless Inc 870.4 45.1% 55.6% 64.7%
06/20/1997 03/30/1998 Waste Management Inc Wheelabrator Technologies Inc 869.7 26.9% 28.2% 30.7%
05/03/1999 08/24/1999 Investor Group Cellular Commun of Puerto Rico 867.8 24.2% 12.9% 7.3%
10/29/1997 01/30/1998 Proffitt's Inc Carson Pirie Scott & Co 867.7 38.8% 39.3% 31.8%
11/20/1998 04/02/1999 Lowe's Companies Inc Eagle Hardware & Garden Inc 867.4 10.5% 18.4% 26.1%
11/13/1997 06/15/1998 Prime Retail Inc Horizon Group Inc 867.3 2.7% -2.2% -7.9%
05/26/1999 12/30/1999 ACE Ltd Capital Re Corp 858.7 29.0% 29.0% 24.2%
05/10/1999 07/06/1999 Georgia-Pacific Corp Unisource Worldwide Inc 849.2 37.1% 43.3% 67.0%
08/03/1998 09/02/1998 AEI Resources Inc Zeigler Coal Holding Co 848.3 32.8% 30.8% 20.6%
07/23/1999 10/15/1999 Texas Instruments Inc Unitrode Corp 847.9 -7.7% -18.8% -15.3%
12/03/1998 04/13/1999 Fairfax Financial Holdings Ltd TIG Holdings Inc 846.8 26.9% 29.4% 15.3%
03/01/1999 07/29/1999 Gilead Sciences Inc NeXstar Pharmaceuticals Inc 842.4 75.1% 129.0% 169.6%
</TABLE>
DRAFT -3-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Merger Transactions Between $100 Million to $1.5 Billion - For the Period of
1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
05/26/1998 08/24/1998 Arbor Software Corp Hyperion Software Corp 837.3 5.0% 3.8% -3.6%
06/29/1998 12/31/1998 Hilton Hotels Corp Grand Casinos Inc 832.4 6.4% 8.3% 7.2%
05/17/1999 01/13/2000 Precision Castparts Corp Wyman-Gordon Co 828.8 50.9% 56.9% 87.1%
06/15/1998 11/30/1998 Charter One Finl, Cleveland,OH ALBANK Financial Corp,NY 827.8 14.0% 12.9% 11.3%
04/29/1998 08/14/1998 Elan Corp PLC Neurex Corp 824.5 65.6% 46.8% 41.4%
04/15/1997 09/25/1997 Ultramar Diamond Shamrock Corp Total Petroleum(North Amer)Ltd 823.7 -1.8% -0.6% 0.7%
10/07/1997 03/30/1998 North Fork Bancorp,Melville,NY New York Bancorp,Douglaston,NY 822.1 13.3% 24.0% 21.7%
08/10/1998 01/04/1999 Harrah's Entertainment Rio Hotel & Casino Inc 821.9 6.6% 14.6% 13.8%
06/01/1999 07/13/1999 Intel Corp Dialogic Corp 817.3 31.8% 40.8% 53.7%
08/27/1999 11/05/1999 Medtronic Inc Xomed Surgical Products Inc 815.6 28.5% 38.1% 44.5%
01/20/1998 02/23/1998 ADVANTA Corp ADVANTA Corp 814.6 41.6% 41.0% 61.6%
10/19/1999 03/07/2000 Farmers Insurance Group Foremost Corp of America 814.0 22.2% 22.2% 22.5%
07/12/1999 09/24/1999 IBM Corp Sequent Computer Systems Inc 808.9 7.5% 32.1% 41.9%
07/27/1999 10/27/1999 Cooper Tire & Rubber Co Standard Products Co 800.6 46.0% 54.9% 35.8%
07/20/1998 08/14/1998 Inland Steel Industries Inc Inland Steel Industries Inc 794.5 4.3% 9.8% 5.7%
05/11/1998 07/10/1999 Consolidated Edison Inc Orange & Rockland Utilities 791.8 38.5% 40.5% 35.1%
02/17/1998 06/11/1998 US Industries Inc Zurn Industries Inc 790.8 19.5% 22.0% 36.0%
07/28/1997 12/22/1997 IMC Global Inc Freeport-McMoRan Inc 790.7 14.4% 13.6% 5.2%
12/18/1997 02/12/1999 NIPSCO Industries Inc Bay State Gas Co 790.5 26.5% 32.0% 38.5%
01/21/1998 05/22/1998 DLJ Merchant Bkg Partners II Thermadyne Holdings Corp 790.0 19.5% 21.1% 18.5%
12/18/1998 03/01/1999 Borg-Warner Automotive Inc Kuhlman Corp 789.9 23.8% 43.1% 38.4%
07/29/1998 10/02/1998 Koninklijke Philips Electronic ATL Ultrasound Inc 786.4 20.1% 12.2% 9.8%
05/18/1999 08/16/1999 AMSTED Industries Inc Varlen Corp 784.8 61.9% 50.0% 68.4%
12/23/1998 09/23/1999 Kimberly-Clark Corp Ballard Medical Products 781.8 -0.5% 12.4% 13.0%
07/10/1997 11/18/1997 Investor Group Kinetic Concepts Inc 776.7 6.9% 7.7% 9.2%
04/21/1997 06/10/1997 Harcourt General Inc National Education Corp 776.1 22.6% 54.1% 40.0%
04/14/1997 01/05/1998 Patriot Amer Hosp/Wyndham Intl Wyndham Hotel Corp 773.1 48.0% 44.5% 48.9%
06/28/1999 10/21/1999 Avnet Inc Marshall Industries 769.3 74.8% 99.6% 99.6%
09/11/1997 12/22/1997 Pillowtex Corp Fieldcrest Cannon Inc 768.2 1.5% 8.6% 31.7%
12/15/1997 05/01/1998 US Bancorp,Minneapolis,MN Piper Jaffray Cos 767.8 25.2% 24.2% 54.0%
01/09/1998 03/30/1998 National City,Cleveland,Ohio Fort Wayne Natl Corp,Indiana 767.6 4.9% -2.3% 5.8%
02/16/1999 05/07/1999 Evercore Capital Partners LP American Media Inc 765.7 13.1% 21.7% 36.6%
05/11/1999 09/03/1999 UtiliCorp United Inc Empire District Electric Co 763.9 38.8% 39.6% 36.0%
12/22/1997 05/21/1998 Investor Group Dynatech Corp 762.9 29.9% 37.2% 29.9%
05/03/1999 06/04/1999 Limited Inc Limited Inc 750.0 14.3% 19.0% 26.8%
04/30/1999 07/22/1999 Ceridian Corp ABR Information Services Inc 745.1 48.4% 50.6% 54.5%
08/06/1998 01/19/1999 Service Corp International Equity Corp International 738.3 22.0% 30.1% 18.0%
12/16/1998 01/25/1999 Seita Consolidated Cigar Holdings 730.4 12.4% 33.5% 86.7%
01/26/2000 02/28/2000 Sempra Energy Sempra Energy 720.0 15.9% 15.9% 13.5%
02/16/1999 05/11/1999 Delta Air Lines Inc ASA Holdings Inc 718.0 6.5% 10.6% 4.2%
05/06/1997 08/15/1997 GTE Corp BBN Corp 713.8 26.1% 32.6% 64.5%
08/27/1999 12/08/1999 Viatel Inc Destia Communications Inc 713.3 33.7% 72.3% 75.9%
</TABLE>
DRAFT -4-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Merger Transactions Between $100 Million to $1.5 Billion - For the Period of
1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
07/06/1999 08/20/1999 Berisford PLC Scotsman Industries Inc 710.3 1.1% 48.7% 57.6%
10/27/1997 04/10/1998 Peoples Heritage Finl Group,ME CFX Corp,Keene,New Hampshire 704.9 26.8% 34.6% 37.8%
05/06/1998 07/22/1998 HealthSouth Corp National Surgery Centers Inc 703.1 17.6% 16.0% 29.1%
06/12/1997 10/01/1997 Thyssen AG Giddings & Lewis Inc 703.0 10.5% 9.8% 0.6%
12/12/1997 05/29/1998 Bethlehem Steel Corp Lukens Inc 700.2 92.0% 94.3% 69.6%
04/27/1998 07/09/1998 Danaher Corp Fluke Corp 699.2 61.7% 61.3% 57.9%
12/14/1998 06/15/1999 American Oncology Resources Physician Reliance Network Inc 697.6 4.3% 15.7% 21.9%
01/14/1998 06/26/1998 Fifth Third Bancorp CitFed Bancorp Inc,Dayton,OH 691.6 36.9% 31.7% 31.3%
01/13/1999 05/05/1999 Santa Fe Energy Resources Snyder Oil Corp 685.7 2.5% -8.7% 9.2%
06/15/1999 03/01/2000 Northeast Utilities Yankee Energy System Inc 681.6 38.5% 46.9% 51.9%
12/15/1997 03/27/1998 Physician Sales & Service Inc Gulf South Medical Supply Inc 678.9 38.5% 22.0% 16.0%
04/27/1998 08/30/1998 Genesis Health Ventures Inc Vitalink Pharmacy Services Inc 678.4 13.6% 12.2% 6.5%
12/11/1997 07/01/1998 Harvard Private Capital Group White River Corp 676.2 16.2% 24.6% 22.5%
07/08/1999 11/19/1999 Abbott Laboratories Perclose Inc 670.5 12.5% 9.4% 22.7%
02/18/1997 09/05/1997 Evergreen Media Corp Chancellor Broadcasting Co 669.4 1.8% -5.3% 13.4%
02/02/1998 07/01/1998 Mercantile Bancorp,St Louis,MO Firstbank of IL,Springfield,IL 669.2 10.4% 13.9% 7.6%
02/16/1998 08/04/1998 Tellabs Inc Coherent Communications Sys 664.3 30.4% 43.2% 81.4%
09/15/1997 02/06/1998 Star Banc Corp,Cincinnati,OH Great Financial Corp,Kentucky 663.5 2.9% 23.5% 33.8%
12/16/1997 05/08/1998 Apartment Investment & Mgmt Co Ambassador Apartments Inc 663.0 4.4% 5.4% 5.4%
08/23/1999 11/23/1999 PSINet Inc Transaction Network Services 660.9 32.2% 61.7% 56.5%
03/25/1997 05/07/1997 IBP Inc (Occidental Petroleum) Foodbrands America Inc 657.5 47.4% 51.0% 61.4%
09/04/1997 01/09/1998 Tyson Foods Inc Hudson Foods Inc 648.4 23.5% 31.6% 28.6%
07/14/1999 08/11/1999 EI du Pont de Nemours and Co EI du Pont de Nemours and Co 646.1 10.6% 15.5% 14.6%
12/09/1998 05/24/1999 Investor Group Tower Realty Trust Inc 645.5 9.4% 9.8% 16.4%
11/23/1998 06/09/1999 CMAC Investment Corp Amerin Corp 634.5 12.2% 10.9% 17.9%
05/21/1997 10/03/1997 Charter One Finl,Cleveland,OH RCSB Finl Inc,Rochester,NY 634.1 21.8% 26.3% 42.2%
06/15/1999 08/31/1999 Pharmacia & Upjohn Inc SUGEN Inc 634.1 34.8% 48.5% 68.7%
07/03/1997 08/06/1997 Raab Karcher AG (VEBA AG) Wyle Electronics 633.0 16.8% 38.4% 35.1%
05/28/1997 02/10/1998 Blackstone Capital Partners CommNet Cellular Inc 631.2 21.8% 28.6% 39.8%
05/28/1997 07/03/1997 Owens Corning Fibreboard Corp 631.2 15.8% 22.2% 49.7%
04/28/1999 06/17/1999 TI Group PLC Walbro Corp 630.3 62.4% 102.5% 122.2%
05/07/1997 08/26/1997 Vencor Inc Transitional Hospitals Corp 628.0 60.0% 60.0% 85.5%
01/23/1998 04/13/1998 WHX Corp Handy & Harman 625.1 8.7% 14.6% 1.6%
04/13/1998 07/31/1998 Paragon Health Network Inc Mariner Health Group Inc 622.3 6.0% 10.9% 29.0%
04/23/1999 02/08/2000 Energy East Corp Connecticut Energy 621.7 34.1% 50.0% 65.1%
10/04/1999 03/08/2000 Travelocity.com (Sabre Hldg) Preview Travel Inc 621.2 0.0% 15.6% 6.8%
12/16/1997 01/30/1998 SulzerMedica(Gebrueder Sulzer) Spine-Tech Inc 621.1 14.3% 52.9% 55.8%
05/21/1998 10/02/1998 Citizens Bancshares Inc,OH Mid Am Inc,Bowling Green,Ohio 620.2 -5.2% -3.4% -7.1%
09/20/1999 11/22/1999 Cie de Saint-Gobain SA Furon Co Inc 616.0 56.3% 50.0% 60.0%
08/10/1999 11/02/1999 Razorfish Inc International Integration Inc 611.0 16.3% 18.1% 17.7%
02/27/1997 06/13/1997 Camco International Inc Production Operators Corp 609.6 22.9% 13.0% 15.9%
10/10/1999 12/16/1999 Warnaco Group Inc Authentic Fitness Corp 605.3 18.4% 17.6% 24.2%
</TABLE>
DRAFT -5-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Merger Transactions Between $100 Million to $1.5 Billion - For the Period of
1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
10/16/1998 03/16/1999 Laidlaw Inc Greyhound Lines Inc 604.2 36.8% 79.3% 42.5%
08/04/1997 10/24/1997 Post Properties Inc Columbus Realty Trust 600.0 4.2% 4.2% 4.5%
10/29/1997 02/17/1998 MBIA Inc CapMAC Holdings Inc 599.3 0.8% -6.1% -3.5%
01/27/1997 03/07/1997 Honeywell Inc Measurex Corp 597.0 44.3% 42.1% 45.8%
10/21/1997 01/07/1998 Berkshire Hathaway Inc International Dairy Queen Inc 596.9 11.9% 9.1% 9.4%
05/05/1999 06/24/1999 URS Corp Dames & Moore Group 596.4 33.3% 33.3% 51.5%
08/31/1999 11/22/1999 Tyco International Ltd AFC Cable Systems Inc 595.6 24.6% 24.2% 13.8%
08/16/1999 03/01/2000 North Fork Bancorp,Melville,NY JSB Financial Inc,Lynbrook,NY 593.7 4.4% 11.4% 10.1%
12/19/1997 04/20/1998 DR Horton Inc Continental Homes Holding 590.2 26.3% 27.6% 36.0%
07/28/1997 10/08/1997 Sun Healthcare Group Inc Regency Health Services Inc 587.9 34.4% 50.4% 43.1%
09/03/1997 10/01/1997 Browning-Ferris Industries Inc Browning-Ferris Industries Inc 585.0 10.4% 10.2% 8.0%
10/09/1997 03/31/1998 Browning-Ferris Industries Inc Browning-Ferris Industries Inc 585.0 4.7% 3.1% 3.8%
03/20/1997 06/17/1997 Investcorp Falcon Building Products Inc 584.5 43.4% 49.5% 52.7%
10/17/1997 11/19/1997 BTR PLC Exide Electronics Group Inc 583.2 25.2% 133.2% 149.5%
03/09/1998 08/31/1998 Fortis BV(Fortis AG,AMEV) John Alden Financial Corp 583.1 -0.6% 0.0% 3.4%
08/26/1997 12/22/1997 Imperial Holly Corp Savannah Foods & Industries 582.9 8.4% 14.9% 17.4%
06/01/1999 01/07/2000 Kelda Group PLC Aquarion Co 582.6 19.3% 28.0% 39.5%
06/08/1999 07/28/1999 Merck E(Merck AG) VWR Scientific Products Corp 581.1 32.7% 30.7% 46.5%
10/15/1997 04/17/1998 CNB Bancshares Inc,Indiana Pinnacle Financial Svcs Inc,MI 577.4 15.6% 27.1% 32.5%
06/12/1998 10/26/1998 KeyCorp,Cleveland,Ohio McDonald & Co Investments Inc 577.4 0.7% 2.7% 7.4%
10/05/1998 03/17/1999 ALZA Corp SEQUUS Pharmaceuticals Inc 577.4 56.1% 81.1% 185.9%
10/14/1999 12/22/1999 Millennium Pharmaceuticals Inc LeukoSite Inc 577.3 60.3% 91.3% 52.6%
04/09/1997 05/13/1997 Tomkins PLC Stant Corp(Bessemer Capital Pa 574.0 29.3% 48.3% 49.6%
02/08/1999 04/29/1999 Building One Services Corp Building One Services Corp 573.8 11.8% 12.3% 10.1%
12/02/1998 06/08/1999 Irvine Co Irvine Apartment Communities 569.3 24.2% 25.3% 28.0%
01/14/1997 04/01/1997 Barnett Banks,Jacksonville,FL Oxford Resources Corp 561.0 10.0% 23.5% 28.1%
11/03/1997 03/24/1998 Allegheny Teledyne Inc Oregon Metallurgical Corp 557.2 45.5% 61.7% 40.6%
07/26/1999 09/02/1999 Autogrill (Benetton Group SpA) Host Marriott Services 547.3 61.5% 73.8% 101.6%
02/24/1997 07/01/1997 ReliaStar Financial Corp Security-Connecticut Corp 545.4 43.7% 45.1% 36.4%
08/23/1999 10/20/1999 Sun Microsystems Inc Forte Software Inc 545.1 31.0% 64.2% 61.3%
06/10/1997 11/03/1997 Wachovia Corp,Winston-Salem,NC Jefferson Bankshares Inc,VA 544.5 29.4% 33.9% 36.2%
03/26/1998 10/01/1998 Zions Bancorp,Utah Sumitomo Bank of California 544.3 -5.8% 6.3% -18.2%
12/07/1998 02/11/1999 GKN PLC Interlake Corp 540.4 07.1% 110.9% 100.0%
04/05/1999 07/22/1999 Welsh Carson Anderson & Stowe BancTec Inc 535.5 42.3% 33.9% 28.1%
08/13/1998 12/31/1998 Stone Rivet Inc Envirotest Systems Corp 535.3 15.0% 1.5% -16.9%
06/17/1998 09/24/1998 Micro Focus Group PLC Intersolv Inc 532.0 56.2% 41.0% 52.1%
10/15/1997 12/04/1997 Synopsis Inc Viewlogic Systems Inc 530.9 24.4% 25.1% 29.5%
05/06/1997 07/22/1997 Durco International Inc BW/IP Inc 530.7 -5.5% 14.2% 18.7%
06/29/1998 09/30/1998 Medtronic Inc Physio-Control International 529.1 19.6% 31.7% 31.3%
05/06/1999 08/02/1999 Litton Industries Inc Avondale Industries Inc 523.8 47.0% 47.0% 38.6%
11/19/1997 08/12/1998 Investor Group Telemundo Group Inc 521.4 19.7% 29.1% 25.0%
03/10/1997 09/02/1997 General Electric Co Greenwich Air Services Inc 519.2 21.6% 33.3% 34.8%
</TABLE>
DRAFT -6-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Merger Transactions Between $100 Million to $1.5 Billion - For the Period of
1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
08/05/1998 02/05/1999 Public Storage Inc Storage Trust Realty 518.3 -9.5% -3.4% -12.9%
03/25/1999 07/02/1999 Interim Services Inc Norrell Corp 517.3 27.0% 19.9% 2.6%
06/23/1997 10/17/1997 General Motors Acceptance (GM) Integon Corp 517.1 173.7% 92.6% 74.8%
05/07/1999 07/30/1999 McDermott International Inc J Ray McDermott SA 514.5 16.8% 13.1% 19.2%
02/03/1999 07/07/1999 Investor Group St John Knits Inc 513.8 42.9% 44.1% 50.0%
07/12/1999 10/26/1999 DoubleClick Inc NetGravity Inc 512.0 11.2% 4.2% 54.3%
03/06/1997 07/31/1997 Philip Environmental Inc Allwaste Inc 506.7 48.2% 63.3% 95.2%
05/27/1998 09/17/1998 Acxiom Corp May & Speh Inc 502.5 2.6% 12.6% 20.3%
09/16/1997 11/04/1997 Pearson PLC All American Communications 500.2 12.7% 41.7% 37.8%
08/09/1999 11/29/1999 GE Medical Systems OEC Medical Systems Inc 500.0 7.1% 10.6% 42.9%
07/12/1999 01/06/2000 RHI AG Global Industrial Technologies 498.2 4.0% 6.1% 9.5%
11/24/1998 03/01/1999 JC Penney Co Genovese Drug Stores 497.5 0.0% 20.0% 51.9%
10/31/1997 02/27/1998 Premiere Technologies Inc Xpedite Systems Inc 496.4 69.0% 73.0% 68.0%
01/30/1997 08/12/1997 Samsung Electronics Co Ltd AST Research Inc 495.8 16.8% 8.0% 20.0%
06/24/1999 08/31/1999 Carrier Corp(United Tech Corp) International Comfort Products 495.2 9.3% 11.9% 33.3%
09/27/1999 11/19/1999 Westinghouse Air Brake Co MotivePower Industries Inc 493.0 21.1% -21.1% -29.8%
07/28/1999 01/14/2000 BB&T Corp,Winston-Salem,NC Premier BancShares,Atlanta,GA 491.9 -5.2% -4.0% 0.6%
10/19/1998 08/31/1999 Eastern Enterprises Colonial Gas Co 491.7 26.9% 29.9% 26.1%
10/21/1999 02/15/2000 Wind River Systems Inc Integrated Systems Inc 491.2 85.1% 74.6% 68.0%
12/08/1998 03/31/1999 GreenPoint Financial Corp,NY Headlands Mortgage Corp 491.0 50.9% 50.3% 65.7%
03/24/1999 11/04/1999 Warburg,Pincus Ventures Inc Knoll Inc(Warburg, Pincus) 490.8 83.6% 51.9% 46.4%
03/02/1998 05/19/1998 Siebel Systems Inc Scopus Technology Inc 490.7 58.5% 93.6% 100.1%
03/02/1998 01/07/2000 Sunbeam Corp Coleman Co Inc 486.0 44.4% 58.6% 121.2%
04/20/1999 07/28/1999 Heller Financial Inc HealthCare Financial Partners 485.3 22.8% 25.0% 39.3%
01/19/1999 03/23/1999 Dura Automotive Systems Inc Excel Industries Inc 482.1 25.4% 41.0% 55.1%
07/15/1997 09/04/1997 Nortek Inc Ply-Gem Industries Inc 476.3 20.0% 16.4% 19.1%
08/23/1999 10/01/1999 Textron Inc Omniquip International Inc 474.5 60.0% 95.3% 152.6%
02/17/1998 05/27/1998 Applied Graphics Technologies Devon Group Inc 474.4 29.2% 32.0% 37.9%
04/30/1997 06/03/1997 GKN PLC Sinter Metals Inc 469.7 37.0% 38.3% 32.7%
06/22/1999 12/15/1999 Newbridge Networks Corp Stanford Telecommunications 469.1 29.4% 44.8% 62.0%
05/05/1997 08/19/1997 Giant Eagle Inc Riser Foods Inc 468.5 11.6% 29.2% 26.8%
11/18/1997 01/08/1998 Cendant Corp Jackson Hewitt 468.2 26.5% 21.7% 47.8%
03/17/1998 07/31/1998 Investor Group BET Holdings Inc 462.3 53.7% 58.5% 58.2%
06/29/1998 03/11/1999 Philadelphia Suburban Corp Consumers Water Co 460.5 23.3% 30.7% 39.9%
07/13/1999 10/28/1999 Excite At Home iMall Inc 460.3 6.2% 18.8% 61.3%
11/19/1997 02/27/1998 Texas Instruments Inc Amati Communications Corp 459.8 31.7% 44.1% 13.5%
06/11/1997 10/31/1997 Lennar Corp Pacific Greystone Corp 459.3 75.3% 83.3% 98.4%
01/16/1997 02/28/1997 Synopsis Inc Epic Design Technology Inc 455.4 -0.6% 8.5% 23.6%
05/20/1997 07/31/1997 Registry Inc Renaissance Solutions Inc 454.5 30.1% 57.2% 96.5%
02/02/1998 04/20/1998 Romac International Inc Source Services Corp 454.4 51.1% 56.7% 50.2%
12/16/1998 05/28/1999 Chittenden Corp,Burlington,VT Vermont Financial Services,VT 454.0 34.5% 30.7% 56.6%
08/10/1998 12/07/1998 R&B Falcon Corp Cliffs Drilling Co 452.1 39.0% 41.2% 17.0%
</TABLE>
DRAFT -7-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Merger Transactions Between $100 Million to $1.5 Billion - For the Period of
1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
06/24/1999 08/30/1999 CompuWare Corp Data Processing Resources Corp 452.1 95.9% 76.1% 42.8%
03/09/1998 08/14/1998 Commercial Federal,Omaha,NE First Colorado Bancorp Inc,CO 449.5 -9.6% 0.2% 0.2%
12/18/1998 01/26/1999 Rohm and Haas Co LeaRonal Inc 449.2 29.2% 37.4% 59.1%
08/25/1997 12/17/1997 Wausau Paper Mills Mosinee Paper Corp 446.3 15.6% 15.9% 5.6%
02/14/1997 09/17/1997 Greenwich Air Services Inc UNC Inc 442.7 37.9% 41.2% 36.4%
11/22/1999 02/10/2000 Digital Insight Corp nFront Inc 439.9 54.8% 117.0% 147.0%
04/15/1998 12/31/1998 Pennzoil Co Quaker State Corp 439.1 -48.5% -42.1% -31.1%
08/03/1998 01/04/1999 Shareholders Priority Healthcare Corp 437.9 99.4% 101.8% 127.2%
06/21/1999 07/29/1999 National Service Industries Holophane 434.7 36.0% 31.9% 35.7%
05/13/1999 06/24/1999 Emerson Electric Co Daniel Industries Inc 429.2 8.6% 19.7% 31.8%
05/25/1999 08/17/1999 Kelso & Co Unilab Corp(Corning Inc) 429.0 20.0% 15.6% 39.7%
03/17/1997 09/04/1997 TCF Financial Corp Standard Financial,Chicago,IL 428.0 22.2% 28.2% 24.8%
05/14/1997 11/18/1997 Enron Corp Enron Global Power & Pipelines 428.0 11.8% 13.7% 19.7%
01/30/1998 02/03/1999 Colony Capital Inc Harveys Casino Resorts 427.9 24.4% 23.8% 34.1%
07/20/1998 01/05/1999 Peoples Heritage Finl Group,ME SIS Bancorp Inc,Springfield,MA 427.6 27.2% 34.7% 44.0%
10/06/1997 03/20/1998 Loral Space & Communications Orion Network Systems Inc 425.6 20.2% 27.9% 32.6%
10/11/1999 12/31/1999 PeopleSoft Inc Vantive Corp 425.6 59.2% 67.4% 51.8%
03/24/1998 08/17/1998 DLJ Merchant Bkg Partners II Insilco Corp 425.3 4.7% 11.1% 12.9%
02/08/1999 03/24/1999 Computer Associates Intl Inc Computer Management Sciences 425.1 19.1% 64.7% 72.3%
09/20/1999 12/30/1999 Jefferson-Pilot Corp Guarantee Life Companies Inc 424.6 8.9% 8.5% 28.6%
09/29/1997 12/22/1997 Wallace Computer Services Inc Graphic Industries Inc 424.5 8.8% 19.2% 34.9%
06/22/1998 08/31/1998 Learning Co Inc Broderbund Software Inc 424.3 21.2% 16.4% 19.0%
12/14/1998 08/06/1999 Sky Financial Group Inc First Western Bancorp Inc,PA 424.3 23.1% 28.4% 43.9%
09/30/1997 11/26/1997 AHC Acquisition Corp Arbor Health Care Co 424.2 15.4% 19.6% 26.8%
09/22/1997 12/05/1997 Conseco Inc Washington National Corp 424.0 2.7% 4.1% 12.2%
07/28/1997 02/02/1998 Intel Corp Chips and Technologies Inc 422.9 25.0% 32.1% 68.7%
05/13/1998 06/24/1998 Samsonite Corp Samsonite Corp 420.0 38.2% 46.5% 33.6%
09/20/1999 01/12/2000 CMGI Inc AdForce Inc 419.0 7.5% 14.1% 51.7%
09/22/1999 11/23/1999 MedImmune Inc US Bioscience Inc 418.9 33.1% 28.9% 33.9%
07/07/1998 09/21/1998 Investor Group Republic Engineered Steels 417.8 56.8% 68.1% 45.0%
02/02/1998 03/31/1998 Danaher Corp Pacific Scientific Co 417.5 20.4% 21.9% 28.7%
04/27/1999 11/22/1999 BB&T Corp,Winston-Salem,NC First Liberty Financial Corp 416.7 34.6% 42.4% 40.7%
08/07/1998 12/31/1998 City Holding Co,Charleston,WV Horizon Bancorp,Beckley,WV 413.4 6.2% 8.4% 15.0%
10/20/1997 06/24/1998 HSN Inc Ticketmaster Group Inc 413.2 32.0% 28.4% 56.3%
09/03/1997 12/30/1997 Computer Products Inc Zytec Corp 412.3 45.3% 48.2% 71.2%
05/14/1999 10/01/1999 Allianz Life Ins Co(Allianz) Life USA Holding Inc 411.4 106.9% 97.6% 101.2%
02/22/1999 07/22/1999 Union Planters Corp,Memphis,TN Republic Banking Corp,Miami,FL 409.5 10.8% 28.9% 28.3%
04/27/1999 06/09/1999 Eastman Chemical Co Lawter International Inc 408.6 38.0% 62.0% 76.6%
09/04/1997 12/18/1997 Kimberly-Clark Corp Tecnol Medical Products Inc 407.8 -9.1% -7.0% -9.1%
07/19/1999 10/01/1999 Starlight Communications Vistana Inc 406.1 7.6% 14.2% 32.6%
01/15/1998 07/01/1998 First Midwest Bancorp,IL Heritage Financial Services 405.8 7.8% 10.5% 31.1%
02/25/1997 03/27/1997 IPALCO Enterprises Inc IPALCO Enterprises Inc 405.1 21.4% 22.5% 24.8%
</TABLE>
DRAFT -8-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Merger Transactions Between $100 Million to $1.5 Billion - For the Period of
1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
06/03/1997 09/08/1997 Humana Inc Physician Corp of America 405.1 12.0% 12.0% 23.1%
03/26/1999 06/30/1999 Fremont Partners Juno Lighting Inc 404.9 21.2% 19.8% 21.6%
09/20/1999 11/16/1999 Computer Sciences Corp Nichols Research Corp 400.9 6.9% 9.0% 24.6%
08/24/1999 11/12/1999 Nortel Networks Corp Periphonics Corp 398.5 15.8% 34.8% 36.0%
07/30/1997 09/04/1997 Laidlaw Inc EmCare Holdings Inc 398.3 -0.7% -1.0% 2.9%
12/15/1997 03/02/1998 Elan Corp PLC Sano Corp 396.8 52.7% 42.6% 95.1%
12/23/1998 03/18/1999 Chevron Corp Rutherford-Moran Oil Corp 396.3 31.0% -29.8% -52.5%
12/17/1997 04/08/1998 Camden Property Trust Oasis Residential Inc 395.2 9.5% 10.7% 7.9%
08/13/1999 09/22/1999 Hochtief AG (RWE AG) Turner Corp 394.8 13.1% 6.0% 34.7%
04/21/1999 11/11/1999 Healtheon Corp MedE America Inc 390.5 36.7% 44.5% 113.5%
09/29/1997 12/23/1997 HBO & Co HPR Inc 389.6 22.9% 24.5% 32.4%
12/27/1998 04/20/1999 Fairchild Corp Kaynar Technologies Inc 388.7 16.8% 27.8% 38.6%
06/14/1999 11/12/1999 Investor Group Maxxim Medical Inc 386.9 30.8% 38.2% 71.2%
11/25/1998 09/29/1999 Investor Group Sbarro Inc 386.4 3.3% 5.3% 2.8%
06/29/1999 12/01/1999 Hudson United Bancorp, NJ JeffBanks Inc,Philadelphia,PA 386.1 18.5% 27.7% 30.2%
07/15/1999 11/23/1999 DLJ Merchant Bkg Partners II Merrill Corp 384.7 25.3% 37.5% 47.3%
06/07/1999 11/04/1999 Southern Union Co Pennsylvania Enterprises Inc 384.4 17.9% 20.7% 35.3%
09/21/1997 12/16/1997 Affiliated Computer Services Computer Data Systems Inc 383.7 42.5% 47.6% 73.7%
02/19/1999 03/31/1999 Securitas AB Pinkerton's Inc 383.0 71.2% 71.9% 46.8%
11/08/1999 12/13/1999 Washington Post Co Washington Post Co 383.0 7.8% 8.0% 11.9%
01/13/1999 12/10/1999 Casella Waste Systems Inc KTI Inc 381.7 -51.0% -48.2% -51.6%
09/08/1998 06/30/1999 Sovereign Bancorp, PA Peoples Bancorp Inc,New Jersey 381.4 26.3% 44.8% 21.7%
08/14/1997 12/31/1997 Allied Capital Lending Corp Allied Capital Commercial Corp 381.3 7.5% 7.8% 10.6%
02/11/1998 05/20/1998 Wolters Kluwer NV Waverly Inc 379.4 42.5% 50.7% 50.7%
04/30/1998 11/02/1998 Dow AgroSciences(Dow Chemical) Mycogen Corp(Dow AgroSciences) 379.3 41.8% 40.0% 52.4%
08/24/1998 11/19/1998 Liberty Media(Tele-Commun) Tele-Commun Intl(Tele-Commun) 379.1 -1.1% -4.5% -9.9%
12/01/1999 02/25/2000 King Pharmaceuticals Inc Medco Research Inc 378.7 27.7% 20.6% 38.1%
02/10/1997 03/31/1997 Vencor Inc TheraTx Inc 378.2 30.3% 35.4% 59.1%
11/13/1997 03/11/1998 Chesapeake Energy Corp Hugoton Energy Corp 377.0 7.7% 11.0% 26.9%
02/06/1998 04/17/1998 Corporate Express Inc Corporate Express Inc 376.3 15.8% 21.6% -2.3%
06/23/1997 10/15/1997 Dime Bancorp Inc,New York,NY North American Mortgage Co 376.1 12.0% 19.0% 31.8%
03/02/1998 08/17/1998 El Paso Natural Gas Co DeepTech International 375.4 8.7% 9.8% 15.5%
05/19/1999 10/01/1999 Washington Mutual, Seattle, WA Long Beach Financial Corp 374.8 25.9% 24.0% 35.5%
05/10/1999 07/30/1999 ShopKo Stores Inc Pamida Holdings Corp 372.3 27.8% 55.9% 253.8%
11/18/1997 07/01/1998 Union Planters Corp,Memphis,TN Peoples First Corp 372.2 12.9% 14.3% 12.5%
07/14/1997 10/28/1997 Investor Group Katz Media Group 371.9 44.3% 69.2% 93.4%
01/11/1999 03/24/1999 Cintas Corp Unitog Co 370.8 76.9% 83.0% 93.1%
10/25/1999 01/19/2000 Bamboo.com Inc Interactive Pictures Corp 368.5 2.9% 1.1% -3.3%
10/27/1997 04/15/1998 Webster Finl Corp,Waterbury,CT Eagle Finl Corp,Bristol,CT 367.0 28.9% 34.4% 37.7%
01/13/1997 04/25/1997 Veritas Software Corp OpenVision Technologies Inc 365.7 43.7% 46.5% 50.9%
02/09/1998 06/02/1998 Kinross Gold Corp Amax Gold Inc 365.5 -9.0% -1.3% 36.5%
02/24/1998 04/06/1998 Siebe PLC Wonderware Corp 362.7 50.0% 59.3% 79.4%
</TABLE>
DRAFT -9-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Merger Transactions Between $100 Million to $1.5 Billion - For the Period of
1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
06/16/1997 08/07/1997 BT Industries AB Raymond Corp 360.4 -6.1% -1.5% 6.5%
05/11/1999 06/08/1999 Conectiv Inc Conectiv Inc 360.3 9.4% 8.5% 28.3%
02/03/1997 03/10/1997 Scotsman Industries Inc Kysor Industrial Corp 359.2 16.2% 17.0% 24.6%
10/17/1997 01/02/1998 SunGard Data Systems Inc Infinity Financial Technology 358.0 19.0% 17.9% 17.4%
06/08/1999 07/31/1999 Meggitt PLC Whittaker Corp 357.3 3.9% 4.4% 13.1%
02/06/1997 08/29/1997 Sovereign Bancorp,PA Bankers Corp,Perth Amboy,NJ 356.9 18.6% 30.2% 27.3%
09/18/1997 02/27/1998 Sovereign Bancorp,PA ML Bancorp,Villanova,PA 355.6 36.2% 49.1% 51.8%
05/22/1997 11/20/1997 US Office Products Co Mail Boxes Etc 354.8 39.2% 41.0% 38.3%
08/30/1999 02/22/2000 North Fork Bancorp,Melville,NY Reliance Bancorp Inc,New York 354.3 12.5% 25.5% 38.0%
09/17/1997 12/12/1997 Warnaco Group Inc Designer Holdings(New Rio LLC) 353.6 17.3% 50.4% 58.5%
05/17/1999 11/11/1999 Security First Technologies Edify Corp 353.5 14.8% 20.1% 146.5%
11/11/1998 07/15/1999 Carolina Power & Light Co North Carolina Natural Gas 352.5 48.1% 41.1% 47.8%
03/11/1999 11/01/1999 Bay View Capital,San Mateo,CA Franchise Mortgage Acceptance 352.4 35.1% 32.1% 72.7%
04/29/1999 08/10/1999 Pentair Inc Essef Corp 352.1 -1.5% 8.4% 22.4%
06/29/1998 09/22/1998 Key Energy Group Inc Dawson Production Services Inc 350.9 40.7% 50.5% 66.7%
02/19/1998 10/15/1998 Hollywood Park Inc Casino Magic Corp 344.8 34.5% 32.1% 32.1%
11/11/1997 02/11/1998 Respironics Inc Healthdyne Technologies Inc 344.1 44.4% 40.1% 44.4%
01/29/1998 05/21/1998 AmeriServe Food Distn Inc ProSource Inc(Onex Corp) 343.3 126.4% 106.9% 100.0%
03/05/1998 05/20/1998 Xerox Corp Intelligent Electronics Inc 342.4 5.7% 19.2% 34.4%
06/10/1997 09/30/1997 Halliburton Co Numar Corp 341.6 90.9% 99.3% 95.7%
07/26/1999 08/31/1999 Gartner Group(Dun&Bradstreet) Gartner Group(Dun&Bradstreet) 340.0 -1.1% 6.4% 9.8%
10/22/1998 04/29/1999 Bank of America National Trust BA Merchant Svcs(BankAmerica) 339.4 47.1% 56.2% 42.0%
09/02/1998 12/17/1998 USWeb Corp CKS Group Inc 337.8 53.3% 30.3% 23.7%
04/22/1999 07/14/1999 Danaher Corp Hach Co 337.6 77.3% 81.6% 61.9%
08/11/1997 12/19/1997 Confetti Acquisition Inc Amscan Holdings Inc 334.9 36.1% 37.5% 46.7%
02/14/1997 06/25/1997 TCF Financial Corp Winthrop Resources Corp 334.7 7.6% 20.0% 23.0%
06/22/1999 10/27/1999 Trenwick Group Inc Chartwell Re Corp 334.3 57.5% 74.8% 50.1%
08/26/1997 09/25/1997 Ethyl Corp Ethyl Corp 333.7 5.7% 3.5% 2.8%
04/19/1999 11/01/1999 Citizens Banking Corp,Flint,MI F&M Bancorp,Kaukauna,WI 333.5 27.8% 32.0% 52.3%
01/11/1999 11/24/1999 Nabors Industries Inc Pool Energy Services Co 332.8 39.4% 73.3% 105.8%
08/06/1998 04/16/1999 Safeway Inc Carr-Gottstein Foods Co 331.9 58.7% 48.1% 70.9%
02/18/1997 07/31/1997 CCB Financial Corp,Durham,NC American Federal Bank FSB,SC 331.5 40.7% 34.5% 45.8%
01/14/1998 06/01/1998 Suiza Foods Corp Continental Can Co Inc 330.5 45.8% 74.4% 71.2%
09/22/1997 12/19/1997 AmerUs Life Holdings Inc AmVestors Financial Corp 330.2 -6.1% -6.8% 3.5%
05/08/1997 11/07/1997 Union Planters Corp,Memphis,TN Magna Bancorp,Hattiesburg,MS 330.1 36.1% 31.4% 34.2%
08/07/1997 09/30/1997 Investor Group Outboard Marine Corp 330.1 -7.7% -2.4% 20.0%
07/14/1999 11/22/1999 ONSALE Inc Egghead.com Inc 328.3 5.4% 5.9% 27.9%
11/24/1997 01/07/1998 Cypress Group LLC General Host Corp 326.2 60.0% 63.0% 79.6%
01/12/1998 02/19/1998 Research Institute of America Computer Language Research Inc 325.4 60.7% 62.2% 69.8%
11/12/1997 03/03/1998 Tekni-Plex Inc PureTec Corp 324.6 28.7% 34.9% 31.8%
03/27/1998 07/15/1998 ISP Holdings Inc Intl Specialty Prods 324.5 4.3% 1.7% 14.5%
05/13/1997 08/28/1997 Tyco International Ltd Inbrand Corp 322.8 70.0% 78.3% 107.2%
</TABLE>
DRAFT -10-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Merger Transactions Between $100 Million to $1.5 Billion - For the Period of
1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
03/26/1997 09/03/1997 Hearst Broadcasting Group Argyle Television Inc 322.2 15.2% 16.5% 14.6%
02/23/1998 04/28/1998 Network Associates Inc Trusted Information Systems 322.1 59.9% 84.6% 92.3%
11/16/1998 02/26/1999 American Tower Corp Omniamerica Inc 321.4 19.4% 12.2% -0.3%
01/22/1997 03/05/1997 Western Atlas Inc Norand Corp 320.8 72.9% 87.4% 94.2%
01/13/1997 09/02/1997 Zurich Versicherungs GmbH Zurich Reinsurance Centre 319.0 17.1% 18.5% 11.6%
10/26/1999 01/31/2000 Fox Paine & Co LLC Watkins-Johnson Co 319.0 30.0% 29.0% 24.6%
03/31/1997 10/01/1997 Astoria Finl,Lake Success,NY Greater NY Svgs Bk,New York,NY 318.1 40.7% 56.0% 62.3%
10/29/1997 03/03/1998 BB&T Corp,Winston-Salem,NC Life Bancorp Inc 316.3 34.7% 27.3% 20.7%
08/30/1999 11/15/1999 Guidant Corp CardioThoracic Systems Inc 315.9 3.0% 0.6% 12.2%
07/31/1998 12/31/1998 Banknorth Group Inc Evergreen Bancorp Inc 313.1 24.1% 28.4% 19.7%
08/04/1997 11/12/1997 Henry Schein Inc Sullivan Dental Products Inc 312.8 28.9% 40.7% 66.2%
10/25/1998 01/18/1999 Watson Pharmaceuticals Inc TheraTech Inc 312.7 42.7% 68.6% 50.4%
03/24/1997 04/28/1997 Elsevier Science MDL Information Systems 310.7 85.5% 43.8% 54.2%
09/25/1997 02/19/1998 Carpenter Technology Corp Talley Industries Inc 309.4 6.7% 11.0% 34.3%
06/30/1997 10/09/1997 Eaton Corp Fusion Systems Corp 308.6 11.4% 9.9% 24.3%
10/14/1999 10/25/1999 RailAmerica Inc RailTex Inc 308.4 28.8% 26.2% 47.8%
10/01/1999 11/29/1999 Kellogg Co Worthington Foods Inc 307.5 67.0% 101.0% 88.2%
06/24/1999 12/01/1999 Kelso & Co Citation Corp 307.4 18.3% 14.3% 26.5%
02/02/1998 03/27/1998 BMC Software Inc BGS Systems Inc 306.9 23.3% 32.4% 42.9%
12/09/1999 02/28/2000 Titan Corp Advanced Communication Systems 306.6 47.8% 47.1% 63.9%
02/18/1997 07/01/1998 Sun Healthcare Group Inc Retirement Care Associates Inc 305.9 19.4% 14.7% 21.1%
08/05/1999 09/19/1999 Corning Consumer Products Co Ekco Group Inc 304.6 55.6% 51.4% 55.6%
05/18/1999 10/05/1999 Metromedia International Group PLD Telekom Inc 304.2 -0.4% -0.4% -0.4%
02/12/1998 03/12/1998 St Jude Medical Inc St Jude Medical Inc 304.0 9.6% 9.7% 22.8%
05/19/1998 09/28/1998 Quantum Corp ATL Products Inc(Odetics) 304.0 8.4% 19.0% 45.0%
05/22/1997 07/31/1997 Johnson & Johnson Biopsys Medical Inc 303.5 7.0% 7.0% 22.4%
08/29/1997 12/29/1997 Rexel SA(Pinault-Printemps) Rexel Inc 302.0 19.2% 26.3% 21.6%
06/10/1999 07/30/1999 MGM Grand Inc(Tracinda Corp) MGM Grand Inc(Tracinda Corp) 300.0 20.8% 17.6% 2.2%
08/14/1997 12/29/1997 Madison Dearborn Partners Tuesday Morning Corp 298.6 22.7% 25.8% 11.1%
04/30/1999 06/11/1999 Aegis Group PLC Market Facts Inc 296.8 19.8% 33.3% 37.8%
01/17/1997 04/11/1997 Extended Stay America Inc Studio Plus Hotels Inc 295.9 55.0% 51.1% 37.5%
05/28/1998 10/29/1998 Republic Security Financial First Palm Beach Bancorp Inc 295.0 50.8% 46.8% 45.1%
12/03/1998 03/11/1999 Automatic Data Processing, Inc Vincam Group Inc 294.9 24.3% 26.4% 39.2%
10/21/1999 01/20/2000 Critical Path Inc Isocor 294.7 132.4% 141.4% 233.2%
07/01/1998 08/20/1998 Navigant Consulting Inc Lecg Inc 294.4 46.5% 49.0% 41.8%
09/02/1998 12/10/1998 Rent-Way Inc Home Choice Holdings Inc 294.4 7.2% 4.1% 7.7%
02/17/1999 08/02/1999 Summit Bancorp,Princeton,NJ Prime Bancorp,Philadelphia,PA 294.3 47.7% 50.8% 47.7%
04/06/1998 07/10/1998 Viad Corp MoneyGram Payment Systems Inc 294.0 11.5% 15.7% 42.4%
12/09/1998 05/25/1999 Cadence Design Systems Inc Quickturn Design Systems Inc 293.3 23.1% 33.3% 36.4%
04/06/1998 07/31/1998 Applied Power Inc Zero Corp 291.4 16.5% 18.0% 33.2%
07/20/1998 12/31/1998 Santa Barbara Bancorp,CA Pacific Capital Bancorp,CA 291.4 27.4% 41.8% 45.1%
06/04/1998 11/03/1998 Avalon Cable of Michigan Inc Cable Michigan Inc 291.2 14.9% 14.9% 23.2%
</TABLE>
DRAFT -11-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Merger Transactions Between $100 Million to $1.5 Billion - For the Period of
1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
08/25/1997 01/23/1998 Perkin-Elmer Corp PerSeptive Biosystems Inc 288.1 16.8% 24.9% 50.4%
07/09/1998 10/28/1998 Zebra Technologies Corp Eltron International Inc 287.7 25.8% 34.6% 57.4%
10/29/1998 12/31/1998 Eclipsys Corp Transition Systems Inc 284.7 57.5% 49.9% 72.5%
03/23/1999 05/27/1999 ServiceMaster Co American Residential Services 283.8 31.4% 70.4% 67.3%
04/09/1998 07/27/1998 Complete Business Solutions Claremont Technology Group Inc 282.5 21.3% 77.0% 118.2%
05/18/1999 11/30/1999 Investor Group O'Sullivan Industries Holdings 279.6 -3.6% -6.3% 7.2%
08/08/1997 12/22/1997 USF&G Corp Titan Holdings Inc 278.1 16.0% 19.1% 24.9%
06/22/1998 12/15/1998 JF Lehman & Co Special Devices Inc 277.8 -2.5% 1.9% 0.0%
02/18/1999 07/19/1999 US Bancorp,Minneapolis,MN Bank of Commerce,San Diego,CA 277.5 15.9% 13.3% 15.0%
12/19/1997 03/30/1998 United Dominion Realty Tr Inc ASR Investments Corp 277.0 4.4% 1.1% 2.6%
11/04/1999 12/22/1999 Cementos Portland SA Giant Cement Holding Inc 277.0 50.8% 71.0% 37.0%
02/19/1998 06/02/1998 First Security Corp,Utah California State Bank 276.9 11.4% 14.0% 18.8%
08/26/1999 10/08/1999 Procter & Gamble Co Recovery Engineering Inc 276.2 100.0% 107.4% 98.6%
12/31/1997 05/22/1998 Boykin Lodging Co Red Lion Inns LP 276.0 -6.4% -5.5% -3.4%
01/12/1998 06/30/1998 Mercantile Bancorp,St Louis,MO CBT Corp,Paducah,Kentucky 275.8 3.3% 1.8% 19.5%
06/24/1997 10/14/1997 Louis Dreyfus Natural Gas American Exploration Co 275.5 13.0% 15.0% 21.6%
03/14/1997 06/26/1997 HBO & Co Enterprise Systems Inc 275.2 15.3% 13.8% 30.0%
06/16/1997 08/29/1997 United Dominion Industries Ltd Core Industries Inc 275.2 26.6% 37.9% 49.3%
02/09/1998 04/16/1998 Fountain View(Heritage) Summit Care Corp 275.1 14.3% 31.3% 37.7%
07/09/1997 09/23/1997 CDSI Holding Corp Control Data Systems Inc 273.9 29.1% 30.6% 35.0%
10/08/1998 11/24/1998 Penton Media Inc Mecklermedia Corp 273.7 43.7% 52.6% 39.8%
12/15/1997 08/07/1998 UST Corp,Boston,MA Affiliated Cmnty Bancorp,MA 272.0 22.4% 25.7% 39.5%
07/16/1998 12/31/1998 First Commonwealth Financial Southwest National Corp,PA 269.8 61.1% 80.9% 77.3%
04/08/1998 05/19/1998 Huntsman Packaging Corp Blessings Corp 269.7 18.7% 18.3% 34.9%
01/21/2000 03/03/2000 Kraft Foods(Kraft Inc/Philip) Balance Bar Co 269.6 37.3% 60.8% 76.4%
10/13/1997 01/22/1998 ICG Communications Inc Netcom On-Line Communication 269.4 49.8% 70.9% 78.5%
11/09/1998 03/01/1999 MGM Grand Inc(Tracinda Corp) Primadonna Resorts Inc 268.4 3.1% 32.6% 86.8%
05/12/1998 08/25/1998 Lomak Petroleum Inc Domain Energy Corporation 268.0 25.1% -30.0% -28.7%
04/10/1997 06/26/1997 Compaq Computer Corp Microcom Inc 267.6 54.8% 91.2% 35.4%
09/12/1997 01/16/1998 Patriot Amer Hosp/Wyndham Intl WHG Resorts & Casino Inc 266.0 35.1% 72.3% 78.5%
06/17/1998 09/08/1998 Carlton Communications PLC Nimbus CD International Inc 264.9 7.0% 5.7% 10.8%
09/29/1998 10/07/1998 Newmont Mining Corp Newmont Gold Co 264.8 -5.2% 20.8% 62.4%
08/24/1999 02/02/2000 Willis Stein & Partners LP Aavid Thermal Technologies Inc 264.1 29.1% 23.3% 28.7%
04/15/1998 08/11/1998 Investcorp Harborside Healthcare Corp 263.2 18.3% 22.7% 5.8%
07/23/1998 10/30/1998 HBO & Co IMNET Systems Inc 261.5 55.6% 59.3% 62.5%
05/07/1997 06/03/1998 Unitrin Inc Reliable Life Insurance Co 261.1 51.1% 51.1% 52.1%
07/27/1999 09/29/1999 IBM Corp Mylex Corp 260.5 20.0% 17.8% 108.7%
05/13/1997 08/26/1997 BAAN Co NV Aurum Software Inc 259.9 33.0% 40.4% 55.8%
06/10/1998 07/31/1998 Wolters Kluwer NV Plenum Publishing Corp 258.0 6.5% 6.7% 10.7%
07/26/1999 11/12/1999 Biovail Corp International Fuisz Technologies Ltd 257.7 23.1% 45.5% 96.5%
02/25/1997 08/05/1998 Petrofina SA Fina Inc 257.0 19.7% 18.5% 21.5%
12/01/1997 02/19/1998 AXENT Technologies Inc Raptor Systems Inc 253.7 5.4% 20.7% 16.5%
</TABLE>
DRAFT -12-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Merger Transactions Between $100 Million to $1.5 Billion - For the Period of
1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
04/06/1998 10/23/1998 FirstMerit Corp Security First Corporation 251.2 30.8% 30.8% 34.6%
11/04/1997 01/12/1998 Parametric Technology Corp ComputerVision Corp 250.3 28.3% 69.9% 18.6%
02/11/1998 06/10/1998 Sombrero Acquisition Corp MTL Inc 250.1 37.9% 38.5% 56.1%
10/02/1997 04/30/1998 Prometheus Senior Quarters Kapson Senior Quarters Corp 247.4 -0.9% 9.4% 1.8%
01/17/1997 06/17/1997 HCC Insurance Holdings Inc Avemco Corp 246.8 47.7% 55.8% 89.3%
10/04/1999 12/16/1999 Technical Olympic SA Newmark Homes Corp 246.0 32.4% 34.8% 18.7%
01/27/1998 03/03/1998 Sage Group PLC State of the Art Inc 245.2 33.3% 35.4% 35.4%
01/28/1999 07/15/1999 BB&T Corp,Winston-Salem,NC Mason-Dixon Bancshares,MD 244.9 74.2% 74.2% 65.3%
07/15/1997 10/28/1997 Paxar Corp Intl Imaging Materials 244.4 67.3% 60.2% 64.9%
12/15/1998 03/29/1999 Quintiles Transnational Corp Pharmaceutical Marketing Svcs 244.1 28.7% 27.4% 42.2%
06/02/1999 11/03/1999 Friede Goldman International Halter Marine Group Inc 244.0 -5.5% 6.3% 0.5%
11/20/1998 01/08/1999 Maxxim Medical Inc Circon Corp 243.7 6.2% 13.2% 0.0%
02/25/1998 10/01/1998 BB&T Corp,Winston-Salem,NC Maryland Federal Bancorp Inc 243.6 16.7% 19.0% 22.5%
03/18/1999 09/07/1999 Old Kent Finl Corp,Michigan Pinnacle Banc Grp,Oak Brook,IL 243.3 19.5% 19.5% 19.5%
01/28/1997 05/21/1997 Monsanto Co Calgene Inc(Monsanto Co) 242.6 62.0% 60.0% 60.0%
06/08/1999 10/18/1999 Sara Lee Corp Chock Full O'Nuts Corp 242.5 83.3% 63.0% 77.8%
03/31/1998 08/17/1998 Hudson United Bancorp,NJ IBS Financial Corp 242.4 3.6% 2.4% 16.0%
02/24/1999 07/09/1999 Old Kent Finl Corp,Michigan CFSB Bancorp Inc,Lansing,MI 241.8 34.6% 33.0% 27.1%
11/13/1997 03/25/1998 Investor Group Chartwell Leisure Inc 240.8 11.3% 4.5% 11.3%
05/18/1998 10/03/1998 First Charter Corp,Concord,NC HFNC Financial Corp 240.2 -12.4% -12.7% -13.4%
08/11/1997 12/30/1997 Metrocall Inc ProNet Inc 239.3 -10.0% -0.7% 27.1%
04/20/1998 09/15/1998 Kapson Senior Quarters Corp Atria Communities Inc 238.9 2.5% 7.3% -0.3%
09/06/1999 12/01/1999 Amdocs Ltd International Telecommun Data 236.8 61.0% 66.1% 61.0%
10/23/1997 12/19/1997 Harbinger Corp Premenos Technology Corp 234.7 55.2% 49.1% 27.8%
06/30/1998 09/30/1998 Liberty Mutual Group Summit Holding Southeast Inc 233.4 28.2% 26.3% 28.2%
08/14/1997 09/16/1997 Omnicare Inc American Medserve Corp 233.2 2.5% 16.1% 25.8%
02/24/1998 05/04/1998 Baxter International Inc Somatogen Inc 232.9 35.8% 39.8% 92.0%
04/21/1998 08/25/1998 Investor Group PCA International Inc 232.5 23.3% 17.8% 20.5%
09/08/1997 12/31/1997 Graham-Field Health Products Fuqua Enterprises Inc 231.0 42.3% 52.8% 78.8%
12/02/1998 04/23/1999 Pinault-Printemps Redoute Brylane Inc 230.6 45.2% 88.5% 44.1%
07/22/1999 10/29/1999 ReliaStar Financial Corp Pilgrim Capital Corp 229.4 -12.0% -0.1% 24.5%
03/11/1999 09/01/1999 International Game Technology Sodak Gaming Inc 228.4 25.0% 25.0% 34.5%
07/09/1999 11/19/1999 Fifth Third Bancorp Peoples Bank Corp,Indiana 228.2 78.0% 80.8% 89.6%
03/13/1998 07/31/1998 Investor Group MedCath Inc 227.8 15.2% 10.9% 34.5%
03/02/1998 07/01/1998 Huhtamaki Oy Sealright Co Inc 226.7 -2.2% -1.1% -5.4%
03/09/1999 06/29/1999 Anchor Gaming Inc Powerhouse Technologies Inc 222.4 35.1% 31.6% 52.2%
08/10/1998 09/21/1998 Amersham Pharmacia Biotech Ltd Molecular Dynamics Inc 222.2 36.7% 47.7% 100.0%
01/19/1999 02/25/1999 Louisiana-Pacific Corp ABT Building Products Corp 222.0 6.2% 29.0% 50.0%
09/25/1998 12/31/1998 Hasbro Inc Galoob Toys Inc 221.6 60.0% 73.0% 51.2%
06/29/1999 12/01/1999 Webster Finl Corp,Waterbury,CT New England Cmnty Bancorp,CT 220.8 13.0% 19.4% 56.2%
03/03/1997 05/30/1997 Fiserv Inc BHC Financial Inc 220.6 67.5% 60.0% 82.3%
07/22/1997 11/07/1997 Sanmina Corp Elexsys International Inc 219.9 1.5% -8.6% 40.2%
</TABLE>
DRAFT -13-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Merger Transactions Between $100 Million to $1.5 Billion - For the Period of
1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
03/24/1997 08/05/1997 Lam Research Corp OnTrak Systems Inc 217.9 -0.9% 3.0% 13.9%
01/01/1998 07/31/1998 ConAgra Inc GoodMark Foods Inc 217.8 54.5% 75.9% 69.4%
09/19/1997 01/16/1998 Marshall Industries Sterling Electronics Corp 217.6 16.3% 30.2% 57.0%
08/27/1999 12/17/1999 Calpine Corp Cogeneration Corp of America 217.1 48.7% 43.9% 42.9%
02/17/1998 04/29/1998 Hadco Corp Continental Circuits Corp 216.9 41.6% 58.0% 64.1%
11/03/1997 04/01/1998 Marshall & Ilsley,Milwaukee,WI Advantage Bancorp,Kenosha,WI 215.8 11.2% 12.2% 11.2%
07/07/1998 12/23/1998 Dexter Corp Life Technologies Inc(Dexter) 215.8 25.2% 24.7% 19.0%
06/24/1999 11/08/1999 AnswerThink Consulting Group Think New Ideas Inc 215.3 13.2% 18.5% 37.5%
08/10/1999 09/20/1999 Teva Pharmaceutical USA Inc Copley Pharmaceutical Inc 214.8 23.9% 12.1% 9.3%
04/17/1998 07/21/1998 Sterling Commerce Inc Sterling Commerce-Managed Div 214.3 6.1% 12.5% 7.7%
03/31/1998 08/21/1998 Hudson United Bancorp,NJ Dime Financial Corp 214.0 6.3% 25.4% 22.9%
06/11/1999 07/22/1999 Ion Beam Applications SA Sterigenics International Inc 213.7 38.5% 52.1% 78.5%
07/08/1997 09/30/1997 Jitney-Jungle Stores of Amer Delchamps Inc 213.6 -2.4% -0.8% 6.7%
03/16/1998 05/28/1998 PLATINUM Technology Inc Logic Works Inc 212.9 13.0% 36.2% 57.1%
09/14/1998 10/28/1998 Carmeuse Lime Inc(Carmeuse SA) Dravo Corp 212.9 87.4% 84.1% 60.0%
10/27/1998 12/14/1998 Allmerica Financial Corp Citizens Corp(Hanover Ins Co) 212.4 20.6% 17.2% 20.9%
03/04/1998 08/01/1998 Global Industrial Technologies AP Green Industries Inc 212.0 24.4% 37.5% 89.2%
08/15/1997 03/27/1998 Fulton Finl Corp,Lancaster,PA Keystone Heritage Group 210.9 43.8% 49.9% 65.1%
06/23/1998 07/31/1998 MGM Grand Inc(Tracinda Corp) MGM Grand Inc(Tracinda Corp) 210.0 31.5% 25.3% 5.3%
12/16/1997 03/30/1998 One Valley Bancorp Inc,WV FFVA Financial Corp,VA 209.4 22.4% 27.3% 30.0%
09/09/1998 12/18/1998 First Consulting Group Inc Integrated Systems Consulting 209.1 125.6% 119.6% 90.2%
08/18/1997 04/23/1998 Golden State Bancorp Inc,CA CENFED Financial,Pasadena,CA 208.4 1.3% 0.5% 3.5%
09/11/1997 04/01/1998 United Bankshares Inc,WV George Mason Bankshares Inc 207.6 12.1% 20.9% 20.9%
11/05/1999 11/05/1999 Discount Investment Corp(IDB) PEC Israel Economic Corp 205.8 0.2% 1.0% 2.8%
03/01/1999 08/06/1999 Fifth Third Bancorp Emerald Financial Corp,OH 203.9 36.6% 36.6% 52.3%
04/10/1997 06/13/1997 Hedstrom Corp(Hedstrom Hldgs) ERO Inc 203.6 12.5% 16.9% 30.4%
10/27/1998 04/01/1999 Wachovia Corp,Winston-Salem,NC Interstate/Johnson Lane Inc 203.6 -5.9% 12.3% 5.8%
09/14/1998 09/14/1998 Qwest Commun Int Inc Icon CMT Corp 202.9 65.5% 60.0% -4.0%
05/12/1999 06/21/1999 Dyson-Kissner-Moran Corp Optek Technology Inc 202.6 29.9% 47.8% 81.3%
12/19/1997 05/01/1998 Cable Systems International IPC Information Systems Inc 201.7 14.3% 31.3% 14.3%
11/15/1999 12/21/1999 Hagemeyer NV Vallen Corp 201.0 26.6% 47.1% 83.5%
10/19/1998 04/07/1999 Nabors Industries Inc Bayard Drilling Technologies 200.5 -10.6% 3.8% -7.1%
02/25/1999 07/01/1999 BancWest Corp,San Francisco,CA SierraWest Bancorp,Truckee,CA 199.0 26.7% 45.0% 40.8%
02/19/1998 04/21/1998 PLATINUM Technology Inc Mastering Inc 198.7 31.6% 25.0% 33.3%
07/31/1997 01/27/1998 Western Bancorp,California Santa Monica Bank 198.2 14.3% 17.6% 28.7%
03/25/1997 06/27/1997 Shareholders Ascent Entertainment Group Inc 198.0 -19.5% -20.5% -32.7%
09/03/1998 02/28/1999 Markel Corp Gryphon Holdings Inc 197.0 33.3% 49.0% 20.6%
04/21/1999 07/23/1999 Real Software NV TAVA Technologies Inc 196.5 34.7% 39.1% 59.0%
05/11/1999 06/21/1999 JLG Industries Inc Gradall Industries Inc 196.2 14.3% 26.0% 36.2%
10/01/1998 04/29/1999 Summit Technology Inc Autonomous Technologies Corp 195.6 234.7% 271.4% 309.8%
09/02/1998 12/01/1998 Sanmina Corp Altron Inc 195.3 16.6% 6.5% 7.7%
06/04/1998 11/30/1998 World Access Inc Telco Systems Inc 194.5 77.8% 65.9% 63.9%
</TABLE>
DRAFT -14-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Merger Transactions Between $100 Million to $1.5 Billion - For the Period of
1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
06/07/1999 09/30/1999 Yellow Corp Jevic Transportation Inc 194.5 30.2% 45.5% 51.4%
05/28/1997 07/17/1997 Compass Group PLC DAKA International Inc 194.0 -33.3% -35.5% -7.7%
08/13/1999 02/04/2000 Provident Financial Group Inc Fidelity Financial of Ohio Inc 193.5 73.2% 75.0% 73.2%
09/29/1998 11/10/1998 Wolter Kluwer US Corp Ovid Technologies Inc 193.4 23.0% 29.4% 46.8%
07/31/1997 09/24/1997 American Industrial Partners Bucyrus International Inc 193.3 33.3% 46.9% 71.4%
04/09/1998 05/15/1998 Richfood Holdings Inc Dart Group Corp 193.3 14.3% 11.9% 19.4%
06/02/1997 07/15/1997 Anthem Inc Acordia Inc(Anthem Inc) 193.2 12.7% 11.5% 26.0%
06/24/1998 10/05/1998 Mylan Laboratories Inc Penederm Inc 193.1 39.0% 39.5% 88.3%
12/23/1997 04/01/1998 Outsourcing Solutions Inc Union Corp 193.0 14.5% 13.5% 23.5%
06/02/1999 08/30/1999 Geon Co(BF Goodrich Co) O'Sullivan Corp 191.8 30.7% 34.2% 44.1%
03/21/1999 07/01/1999 Viacom Inc(Natl Amusements) Spelling Entertainment Group 191.6 8.3% 43.1% 54.5%
08/14/1997 09/24/1997 MedPartners Inc Talbert Medical Management 189.0 10.5% 18.9% 37.0%
11/20/1998 04/06/1999 SpeedFam-IPEC Inc Integrated Process Equipment 188.8 -2.9% -0.6% 19.0%
10/06/1997 12/19/1997 Guidant Corp EndoVascular Technologies Inc 187.8 22.1% 22.1% 73.9%
08/25/1997 10/21/1997 Household International Inc ACC Consumer Finance Corp 186.9 35.8% 34.7% 29.6%
08/28/1997 02/25/1998 Wellsford Real Properties Inc Value Property Trust 186.6 25.0% 20.9% 18.7%
05/10/1999 06/14/1999 GN Great Nordic Ltd ReSound Corp 185.4 21.9% 52.4% 91.0%
07/29/1999 02/11/2000 Old Kent Finl Corp,Michigan Merchants Bancorp,Aurora,IL 185.0 21.1% 26.8% 27.7%
10/16/1997 02/12/1998 Hartford Financial Services Omni Insurance Group Inc 184.7 78.9% 75.8% 130.9%
10/19/1998 03/01/1999 Intel Corp Shiva Corp 184.2 41.2% 92.0% 45.5%
10/19/1998 05/14/1999 Sunrise Assisted Living Inc Karrington Health Inc 184.1 32.4% 28.0% 100.0%
04/16/1997 05/20/1997 Briggs & Stratton Corp Briggs & Stratton Corp 183.1 19.3% 14.6% 11.8%
09/12/1997 12/09/1997 Tivoli Systems Inc(IBM Corp) Unison Software Inc 183.0 9.1% 25.0% 22.4%
06/22/1999 09/24/1999 S3 Inc Diamond Multimedia Systems Inc 183.0 -13.8% 21.6% 4.5%
06/17/1997 07/25/1997 CCL Industries Inc Seda Specialty Packaging Corp 182.6 31.8% 36.5% 52.6%
08/07/1997 11/12/1997 Wachovia Corp,Winston-Salem,NC 1st United Bancorp,FL 182.2 5.7% 16.0% 27.5%
07/17/1998 09/02/1998 DLJ Merchant Banking Inc DeCrane Aircraft Holdings Inc 181.5 30.5% 28.7% 33.8%
11/04/1999 02/15/2000 Investor Group Cleveland Indians Baseball Co 180.6 39.5% 128.0% 155.3%
03/06/1998 09/11/1998 Protective Life Corp United Dental Care Inc 180.4 20.5% 49.2% 57.4%
12/22/1998 01/25/1999 PEP Boys-Manny Moe & Jack Inc PEP Boys-Manny Moe & Jack Inc 180.4 16.4% 18.5% 8.9%
12/13/1999 02/09/2000 Mail.com Inc NetMoves 179.8 79.4% 94.9% 150.6%
02/25/1997 07/07/1997 Pacific Century Financial Corp CU Bancorp,Encino,California 178.4 15.8% 18.0% 25.2%
12/11/1998 02/16/1999 Cracker Barrel Old Country Str Logans Roadhouse Inc 178.3 13.9% 10.3% 33.8%
08/11/1997 12/22/1997 Fairfield Communities Inc Vacation Break USA Inc 178.1 41.6% 39.1% 95.8%
07/20/1998 03/22/1999 Richmond County Financial,NY Bayonne Bancshares,New Jersey 177.7 11.1% 16.7% 18.9%
07/15/1999 09/01/1999 Sterling Software Inc Information Advantage Software 177.5 18.2% 70.5% 56.4%
10/14/1997 12/19/1997 National Data Corp Physician Support Systems Inc 175.2 -1.0% -3.7% 4.8%
07/15/1997 10/02/1997 Axiohm SA DH Technology Inc 175.0 57.5% 56.3% 57.5%
01/05/1999 06/07/1999 Anchor BanCorp Wisconsin Inc FCB Financial Corp,Neenah,WI 174.9 57.7% 63.5% 50.9%
11/21/1997 01/20/1998 Co-Steel Inc New Jersey Steel(Von Roll) 173.5 162.9% 170.6% 166.7%
11/02/1998 12/30/1998 Celestica Inc Intl Manufacturing Svcs Inc 173.2 42.9% 172.6% 83.1%
02/15/1999 07/01/1999 JW Childs Equity Partners LP American Safety Razor Co 173.1 43.8% 33.6% 19.0%
</TABLE>
DRAFT -15-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Merger Transactions Between $100 Million to $1.5 Billion - For the Period of
1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
04/27/1999 08/13/1999 InterVoice Inc Brite Voice Systems Inc 172.2 26.9% 33.2% 67.5%
06/05/1997 07/14/1997 Intermedia Communications Inc DIGEX Inc 171.6 19.5% 35.9% 31.6%
07/16/1997 02/01/1998 Hibernia Corp,New Orleans,LA ArgentBank,Thibodaux,Louisiana 171.2 29.8% 31.2% 39.0%
09/23/1999 11/04/1999 Textron Financial Corp Litchfield Financial Corp 171.1 38.0% 36.1% 24.8%
02/11/1997 06/13/1997 HBO & Co AMISYS Managed Care Systems 170.6 38.6% 44.3% 43.1%
06/09/1999 07/20/1999 Ford Motor Co Automobile Protection Corp 169.9 9.5% 18.2% 44.4%
03/31/1997 06/03/1997 Moore Corp Ltd Peak Technologies Group Inc 169.8 108.7% 97.3% 65.5%
11/03/1997 01/09/1998 Arris Pharmaceuticals Corp Sequana Therapeutics 169.4 44.0% 47.3% 23.4%
12/16/1997 07/01/1998 Hudson Chartered Bancorp,NY Progressive Bank,Pawling,NY 167.6 14.3% 16.3% 26.8%
11/02/1998 03/18/1999 ServiceMaster Co LandCARE USA Inc 167.5 29.3% 27.3% 68.9%
02/17/1998 08/17/1998 HB Acquisition Corp Bell Sports Corp 165.7 13.9% 13.1% 8.6%
05/27/1999 09/01/1999 Carlyle Group LP Empi Inc 165.3 27.3% 27.7% 16.8%
02/09/1998 06/30/1998 Banco Bilbao Vizcaya SA PonceBank 164.5 12.6% 14.1% 25.8%
09/03/1997 02/24/1998 Peoples Bk of Bridgeport,CT Norwich Financial Corp,CT 164.0 -0.5% 15.4% 30.4%
09/24/1997 01/06/1998 Zions Bancorp,Utah Vectra Banking Corp,Denver,CO 162.3 19.2% 18.6% 47.3%
03/13/1998 07/02/1998 St. Paul Bancorp,Chicago,IL Beverly Bancorp,Tinley Park,IL 161.8 16.5% 17.4% 19.6%
12/11/1997 03/31/1998 Regions Financial Corp First State Corp,Albany,Ga 161.2 18.4% 23.9% 16.9%
10/22/1998 02/12/1999 Lighthouse Weston Corp Lumen Technologies Inc 160.5 29.2% 51.2% 53.1%
12/16/1997 07/02/1998 BB&T Corp,Winston-Salem,NC Franklin Bancorp,Washington,DC 160.2 21.4% 32.1% 54.8%
05/07/1999 09/29/1999 Kirtland Capital Partners Instron Corp 159.9 36.4% 29.4% 31.3%
11/28/1997 07/13/1998 Golden State Bancorp Inc,CA RedFed Bancorp Inc,Redlands,CA 159.5 1.8% 1.8% 7.1%
09/10/1997 11/28/1997 Corporate Express Inc Data Documents Inc 159.4 10.9% 14.9% 26.1%
01/19/2000 02/09/2000 Elyo(Suez Lyonnaise des Eaux) Trigen Energy Corp 159.2 38.2% 42.4% 31.9%
10/17/1997 12/29/1997 Emerson Electric Co Computational Systems Inc 158.6 45.1% 48.3% 62.5%
03/15/1999 06/17/1999 Vulcan Ventures Inc Go2Net Inc 158.5 3.4% 34.8% -6.7%
10/15/1999 01/05/2000 El Paso Energy Corp Crystal Gas Storage Inc 158.4 26.7% 29.2% 26.0%
10/27/1999 01/21/2000 Lennox International Inc Service Experts Inc 158.3 17.4% 36.6% -13.9%
11/03/1997 05/22/1998 FirstMerit Corp CoBancorp Inc 157.3 10.6% 30.9% 52.1%
07/28/1999 09/07/1999 Caradon PLC(MB Group PLC) Easco Inc(American Industrial) 154.7 26.7% 35.1% 43.9%
03/31/1998 06/29/1998 Omnicare Inc IBAH Inc 154.3 12.2% 61.4% 58.6%
08/03/1998 10/16/1998 CMS Energy Corp Continental Natural Gas Inc 154.2 8.8% 35.6% 46.8%
11/12/1998 03/22/1999 Ames Department Stores Inc Hills Stores Co 153.4 14.3% 9.1% -11.1%
05/29/1998 08/06/1998 Bradley Real Estate Inc Mid-America Realty Investments 153.2 5.0% 6.3% 2.4%
05/12/1998 06/26/1998 Primark Corp Primark Corp 153.0 23.4% 16.9% -1.9%
06/09/1997 09/12/1997 Whole Foods Market Inc Amrion Inc 152.6 8.1% 19.2% 47.0%
07/28/1998 06/18/1999 Investor Group CompDent Corp 152.1 11.1% 9.1% -4.0%
06/18/1998 11/23/1998 Summit Bancorp,Princeton,NJ NSS Bancorp,Norwalk,CT 151.3 28.2% 36.8% 31.5%
03/02/1998 08/03/1998 Unitrode Corp Benchmarq Microelectronics Inc 150.6 15.8% 14.0% 67.2%
10/17/1997 02/27/1998 Investor Group ATC Group Services Inc 150.0 0.0% -8.1% 10.3%
06/22/1999 09/24/1999 Multex.com Inc Market Guide Inc 149.8 26.8% 52.6% 71.9%
11/19/1998 01/05/1999 EM Industries Inc(Merck AG) CN Biosciences Inc 149.7 8.1% -4.3% -0.5%
06/22/1998 10/02/1998 Schwinn Holdings Corp GT Bicycles Inc 149.6 68.4% 77.8% 36.2%
</TABLE>
DRAFT -16-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Merger Transactions Between $100 Million to $1.5 Billion - For the Period of
1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
07/30/1999 10/21/1999 Corning Consumer Products Co General Housewares Corp 148.6 43.3% 49.4% 45.1%
11/17/1997 03/02/1998 Borland International Inc Visigenic Software Inc 148.4 92.0% 64.0% 92.0%
09/03/1998 03/19/1999 Republic Industries Inc Cross-Continent Auto Retailers 147.9 66.2% 67.8% 55.6%
06/20/1997 10/23/1997 Forcenergy Inc Edisto Resources Corp 147.7 -6.6% -6.6% -0.4%
03/17/1998 05/27/1998 CBT Group PLC ForeFront Group Inc 147.5 17.3% 29.4% 48.5%
11/18/1999 01/31/2000 Tumbleweed Communications Corp Worldtalk Communications Corp 146.7 28.4% 71.2% 105.4%
04/15/1998 05/29/1998 Siebe PLC Simulation Sciences Inc 146.5 24.0% 16.8% 11.1%
07/03/1997 09/26/1997 Port Royal Holdings Inc Krystal Co 145.4 32.0% 169.8% 176.2%
05/06/1997 12/01/1997 BB&T Corp,Winston-Salem,NC Virginia First Finl Corp,VA 145.3 77.3% 77.3% 74.1%
05/06/1999 06/18/1999 Falcon Products Inc Shelby Williams Industries Inc 145.2 20.0% 24.5% 66.0%
09/22/1999 03/01/2000 City National Corp,California Pacific Bank NA,CA 145.0 42.3% 49.7% 54.7%
11/22/1999 02/02/2000 GR Acquisition Corp Garden Ridge Corp 144.4 58.6% 65.8% 70.4%
09/05/1997 01/16/1998 Avant! Corp Technology Modeling Assoc Inc 144.3 29.5% 52.8% 43.2%
03/25/1997 07/10/1997 IDX Systems Corp Phamis Inc 142.8 18.9% 23.0% 26.5%
10/23/1997 04/24/1998 Hudson United Bancorp,NJ Poughkeepsie Financial Corp 142.4 1.1% 2.9% 17.1%
02/23/1999 03/31/1999 First Technology PLC Control Devices Inc 142.4 20.4% 19.3% 6.6%
01/26/1998 05/06/1998 USA Waste Services Inc TransAmerican Waste Industries 142.3 51.4% 36.6% 78.6%
08/28/1997 10/10/1997 Applied Power Inc Versa Technologies Inc 141.9 36.8% 33.1% 31.3%
05/08/1998 06/15/1998 Agrobios(Desc SA de CV) Authentic Specialty Foods Inc 141.9 6.3% 13.3% 37.4%
11/19/1998 02/22/1999 American Airlines Inc(AMR) Reno Air Inc 141.3 6.9% 15.9% 44.2%
12/11/1998 05/13/1999 3Dfx Interactive Inc STB Systems Inc 141.0 81.2% 81.2% 73.8%
08/02/1999 09/03/1999 Inamed Corp Collagen Aesthetics Inc 140.8 45.3% 53.8% 32.7%
08/14/1997 12/05/1997 Comforce Corp Uniforce Services Inc 140.7 37.6% 37.6% 52.6%
02/11/1997 05/29/1997 MetaTools Inc Fractal Design Corp 140.2 45.0% 40.4% 1.0%
03/26/1998 07/31/1998 Aviation Sales Co Whitehall Corp 139.9 2.6% -2.9% 9.1%
08/12/1997 09/17/1997 Steris Corp Isomedix Inc 139.8 5.8% 15.5% 13.9%
01/20/1998 10/05/1998 Albertson's Inc Buttrey Food and Drug Stores 139.2 44.2% 44.2% 47.6%
01/22/1998 09/29/1998 Koninklijke KNP BT NV BT Office Products Intl Inc 138.1 32.5% 78.9% 78.9%
11/17/1997 05/12/1998 Citizens Bancshares Inc,OH Century Finl Corp,Rochester,PA 137.4 39.8% 41.7% 61.0%
10/16/1998 12/15/1998 Affiliated Computer Services BRC Holdings Inc 137.2 17.1% 16.9% 15.2%
10/21/1997 12/30/1997 Kevco Inc Shelter Components Corp 136.6 20.7% 25.6% 13.8%
03/07/1997 08/01/1997 Henry Schein Inc Micro Bio-Medics Inc 136.1 12.2% 12.2% 10.4%
02/10/1999 03/26/1999 GlobeGround GmbH Hudson General Corp 134.7 39.1% 38.2% 52.0%
08/11/1999 11/24/1999 VS&A Commun Partners III LP HCIA Inc(AMBAC Inc) 134.7 31.3% 32.3% 4.1%
08/15/1997 10/06/1997 T/SF Communications Corp Official Information Co 134.1 3.9% 4.2% 7.3%
06/02/1998 12/16/1998 State Financial Services Corp Home Bancorp of Elgin,Elgin,IL 134.0 11.3% 11.3% 8.9%
07/25/1997 12/01/1997 Prime Hospitality Corp Homegate Hospitality Inc 133.2 30.3% 33.8% 28.6%
10/21/1999 02/04/2000 United Technologies Corp Cade Industries Inc 133.2 30.3% 26.3% 55.4%
11/26/1997 02/25/1998 Investor Group Universal Hospital Services 133.0 29.2% 29.2% 25.3%
02/09/1998 03/09/1998 Shaw Industries Inc Shaw Industries Inc 132.8 12.4% 13.6% 13.6%
11/17/1997 02/26/1998 Fidelity National Financial Granite Financial Inc 132.4 89.8% 89.8% 87.6%
08/04/1998 12/31/1998 Guidant Corp InControl Inc 132.1 21.5% 50.0% 118.2%
</TABLE>
DRAFT -17-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Merger Transactions Between $100 Million to $1.5 Billion - For the Period of
1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
10/16/1998 02/12/1999 Affiliated Computer Services BRC Holdings Inc 131.9 17.1% 16.9% 15.2%
10/31/1997 03/12/1998 BEC Group Inc ILC Technology Inc 130.8 108.7% 107.6% 108.7%
12/17/1997 01/23/1998 InvaCare Corp Suburban Ostomy Supply Co Inc 130.8 8.0% 13.3% 13.3%
09/11/1998 06/22/1999 Suiza Foods Corp Broughton Foods Co 130.8 -4.3% -2.9% -2.9%
02/04/1998 06/09/1998 Primus Telecommunications TresCom International Inc 130.7 25.2% 30.9% 51.5%
12/29/1997 03/17/1998 Hewlett-Packard Co Heartstream Inc 130.6 -6.7% 18.2% -8.6%
08/25/1997 10/03/1997 Cambrex Corp BioWhittaker Inc 130.5 17.8% 38.9% 47.7%
02/01/1999 08/02/1999 Independence Community Bank Broad Natl Bancorp,Newark,NJ 130.4 18.1% 24.7% 33.3%
07/28/1998 09/10/1998 Network Associates Inc CyberMedia Inc 130.1 25.6% 38.2% 117.1%
08/14/1997 12/31/1997 Allied Capital Lending Corp Allied Capital Corp 130.0 7.8% 7.8% 9.1%
02/02/1998 12/03/1998 CompassBank,New Bedford,MA Sandwich Bancorp,Sandwich,MA 129.6 47.1% 48.8% 48.8%
04/16/1998 09/28/1998 Phoenix Technologies Ltd Award Software International 129.5 12.8% 21.3% 53.1%
06/14/1999 08/02/1999 Cadence Design Systems Inc OrCAD Inc 129.5 38.7% 57.6% 70.5%
12/17/1998 02/04/1999 Moriarty Acquisition Corp Rival Co 129.4 22.9% 25.0% 93.0%
04/05/1999 07/16/1999 Lucent Technologies Inc Mosaix Inc 129.3 28.6% 35.6% 38.9%
03/02/1998 04/30/1998 Sunbeam Corp First Alert Inc 129.2 68.0% 90.9% 110.0%
11/05/1998 12/09/1998 Alliant Techsystems Inc Alliant Techsystems Inc 129.2 4.3% 11.1% 14.9%
12/10/1998 06/01/1999 M&T Bank Corp,Buffalo,New York FNB Rochester Corp,NY 127.8 6.0% 55.3% 85.9%
06/04/1997 07/28/1997 Electronic Arts Inc Maxis Inc 127.5 2.3% 2.3% 40.6%
06/17/1997 09/25/1997 Leonard Green & Partners LP Hechinger Co 127.0 -14.3% -7.7% -11.1%
04/27/1998 07/27/1998 Bright Horizons Holdings Inc CorporateFamily Solutions Inc 127.0 -21.4% -22.3% -7.5%
09/12/1997 04/01/1998 WesBanco Inc,Wheeling,WV Coml Bancshares,Parkersburg,WV 126.7 47.9% 46.8% 66.8%
08/10/1998 03/26/1999 BB&T Corp,Winston-Salem,NC Scott & Stringfellow Financial 126.4 19.8% 28.7% 35.0%
03/19/1999 10/05/1999 Synovus Financial Corp,GA Merit Holding Corp,Tucker,GA 125.9 25.2% 26.4% 30.7%
06/16/1999 08/26/1999 Tyco International Ltd Central Sprinkler Corp 125.5 34.1% 50.0% 77.8%
09/08/1998 12/15/1998 Investor Group PEC Israel Economic Corp 125.0 31.5% 28.0% 23.7%
02/10/1998 03/11/1998 Liberty Corp Liberty Corp 124.8 11.2% 15.2% 11.5%
10/28/1998 03/29/1999 Centura Banks Inc,NC First Coastal Bankshares Inc 124.8 27.8% 56.1% 68.5%
08/03/1998 11/17/1998 McMoRan Oil & Gas Co Freeport-McMoRan Sulphur Inc 124.2 14.9% 6.4% 4.2%
05/24/1999 08/17/1999 RadiSys Corp Texas Micro Inc 123.7 74.4% 72.2% 81.3%
12/19/1997 06/03/1998 IXC Communications Inc Eclipse Telecommunications Inc 122.2 18.0% 19.9% 14.4%
02/09/1998 06/18/1998 USA Waste Services Inc American Waste Services 122.1 100.0% 156.0% 166.7%
11/16/1998 06/30/1999 Temple-Inland Inc,Diboll,Texas HF Bancorp Inc,Hemet,CA 121.6 8.8% 10.4% 39.6%
02/25/1999 08/30/1999 BB&T Corp,Winston-Salem,NC Matewan Bancshares Inc 120.5 -15.7% -9.9% -1.9%
04/10/1997 05/08/1997 SPX Corp SPX Corp 120.4 22.1% 32.9% 16.1%
04/17/1997 07/14/1997 Baker Hughes Inc Drilex International Inc 120.1 31.4% 37.9% 59.8%
06/11/1999 07/21/1999 Solvay Pharmaceuticals SA Unimed Pharmaceuticals Inc 119.9 18.5% 12.9% 62.7%
01/27/1999 07/12/1999 BB&T Corp,Winston-Salem,NC First Citizens Corp,Newman,GA 119.7 37.7% 50.8% 50.8%
07/12/1999 12/17/1999 HIG Capital LLC Happy Kids Inc 119.6 9.5% 28.7% -18.6%
03/04/1999 06/01/1999 Men's Wearhouse Inc K&G Men's Center Inc 118.3 37.3% 45.5% 44.9%
03/09/1998 04/30/1998 Western Atlas Inc 3-D Geophysical Inc 117.6 8.7% 16.1% 24.5%
07/25/1997 08/28/1997 Constellation Capital Partners Imo Industries Inc 117.3 18.7% 20.0% 22.6%
</TABLE>
DRAFT -18-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Merger Transactions Between $100 Million to $1.5 Billion - For the Period of
1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
09/18/1997 12/16/1997 Orion Capital Corp Guaranty National Corp 117.2 10.8% 23.9% 27.7%
03/19/1997 07/11/1997 Snyder Communications Inc American List Corp 117.1 17.3% 28.0% 8.8%
12/29/1997 02/09/1998 Tyco International Ltd Holmes Protection Group Inc 117.1 -5.6% -5.6% -13.9%
04/01/1999 08/15/1999 Vivendi SA Aqua Alliance Inc 117.1 28.9% 19.0% 101.7%
07/28/1999 08/27/1999 UGI Corp UGI Corp 117.0 24.2% 22.4% 28.8%
01/21/1997 07/09/1997 Mafco Holdings Inc Mafco Consolidated Grp(Mafco) 116.8 23.5% 23.5% 27.6%
11/10/1998 12/16/1998 Roanoke Electric Steel Steel of West Virginia Inc 116.8 75.5% 100.0% 79.2%
07/24/1997 10/28/1997 ITEQ Inc Astrotech International Corp 116.7 45.7% 63.4% 78.4%
11/12/1999 02/09/2000 TriPoint Global Communications Vertex Communications Corp 116.0 48.5% 37.5% 71.7%
07/23/1998 10/08/1998 Digital Microwave Corp Innova Corp 115.7 16.2% 36.5% 30.0%
11/10/1998 12/22/1998 Select Medical Corp Intensiva Healthcare Corp 115.2 54.0% 60.4% 92.5%
09/23/1998 12/17/1998 Usinor SA J&L Specialty Steel Inc 115.0 100.0% 112.5% 37.8%
02/20/1997 12/09/1997 Apartment Investment & Mgmt Co NHP Inc(Apartment Investment) 114.5 28.3% 25.2% 16.9%
07/06/1998 12/23/1998 Davel Communications Group Inc Peoples Telephone Co Inc 114.5 87.5% 80.3% 118.0%
07/23/1997 12/18/1997 Newport Invest(Apollo Mgmt) Alliance Imaging Inc 114.2 7.3% 3.5% 14.3%
05/29/1998 08/17/1998 Pogo Producing Co Arch Petroleum Inc 114.0 0.1% 5.5% -3.5%
05/19/1999 09/03/1999 Guardian Life Ins Co of Amer First Commonwealth Inc 113.7 34.2% 39.4% 70.9%
12/18/1998 06/11/1999 Valley National Bancorp,NJ Ramapo Financial Corp 113.2 58.9% 72.2% 84.5%
05/29/1998 10/20/1998 Innovative Communication Co Emerging Communications Inc 112.3 46.4% 42.6% 54.7%
08/21/1998 09/23/1998 Albemarle Corp Albemarle Corp 112.1 6.8% 5.8% -6.9%
11/24/1998 03/24/1999 BGI Acquisition LLC Besicorp Group Inc 111.8 11.2% 11.6% 6.4%
01/07/1999 02/17/1999 Illinois Tool Works Inc Trident International Inc 111.7 78.4% 83.3% 78.4%
11/18/1998 05/14/1999 First American Financial Corp National Information Group 111.5 100.6% 159.2% 273.2%
06/17/1997 07/24/1997 Monterey Resources Inc McFarland Energy Inc 111.2 11.6% 41.3% 44.8%
09/09/1998 05/03/1999 FBOP Corp,Oak Park,Illinois Calumet Bancorp Inc 110.6 18.5% 19.6% 3.2%
03/11/1998 05/15/1998 International Home Foods Inc Grist Mill 110.3 18.4% 21.5% 47.8%
11/02/1998 12/10/1998 Danone Group AquaPenn Spring Water Co Inc 110.3 34.2% 100.0% 160.0%
11/09/1998 12/22/1998 Stonington Partners Inc Global Motorsport Group Inc 109.0 13.5% 33.8% 31.1%
04/12/1999 01/07/2000 Independence Community Bank Statewide Financial Corp,NJ 108.9 20.2% 33.7% 42.6%
02/04/1998 03/15/1999 Playboy Enterprises Intl Inc Spice Entertainment Cos Inc 108.8 17.6% 17.6% 42.8%
03/08/1999 06/24/1999 Anteon Corp Analysis & Technology Inc 108.5 18.9% 16.2% 23.8%
08/23/1999 11/11/1999 Tyco International Ltd General Surgical Innovations 108.3 36.4% 48.1% 48.1%
11/19/1997 05/01/1998 Heritage Bancorp,Pottsville,PA BCB Financial Services Corp,PA 107.9 35.7% 36.5% 29.8%
03/11/1997 08/25/1997 Provident Bankshares Corp First Citizens Financial,MD 107.8 26.5% 42.3% 47.3%
03/16/1998 10/30/1998 FPK LLC Norwood Promotional Products 107.8 19.1% 19.1% 23.6%
05/13/1999 08/23/1999 NCO Group Inc Compass International Svcs 107.7 5.8% 12.5% 11.5%
06/07/1999 10/01/1999 AutoCyte Inc Neopath Inc 107.5 55.6% 53.1% 51.9%
07/13/1998 03/08/1999 Medtronic Inc AVECOR Cardiovascular Inc 106.6 31.6% 76.3% 114.4%
01/24/1997 07/02/1997 American Standard Inc INCSTAR Corp(Sorin Biomedical) 106.3 42.9% 53.2% 68.5%
12/15/1997 08/03/1998 Sovereign Bancorp,PA Carnegie Bancorp,Princeton,NJ 105.9 1.3% 3.7% 26.5%
10/06/1998 03/17/1999 CDNow Inc N2K Inc 105.9 50.7% -10.5% -18.2%
06/29/1998 12/22/1998 Global Motorsport Group Inc Global Motorsport Group Inc 105.8 3.6% 5.5% 3.0%
</TABLE>
DRAFT -19-
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Premiums Paid Analysis
All Merger Transactions Between $100 Million to $1.5 Billion - For the Period of
1/1/1997-3/7/2000 (Sorted by Transaction Value)
($ in Millions)
<TABLE>
<CAPTION>
Transaction Premium % Paid Prior to Announcement
Date Date ------------------------------------
Announced Effective Acquiror Name Target Name Value(1) 1 Day 1 Week 4 Weeks
---------- ---------- ----------------------------- -------------------------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
08/07/1998 09/14/1998 SFX Entertainment Inc Magicworks Entertainment Inc 105.3 12.3% 16.4% 64.1%
05/28/1998 07/07/1998 Bowne & Co Inc Donnelley Enterprise Solutions 105.2 60.8% 61.5% 83.6%
04/29/1997 10/13/1997 Western Bancorp,California SC Bancorp,Anaheim,California 105.0 20.0% 31.0% 37.3%
10/17/1997 02/09/1998 Linsalata Capital Partners II Tranzonic Cos 104.8 -1.5% -2.9% 4.5%
02/22/1999 06/22/1999 LSI Logic Corp SEEQ Technology Inc 104.3 46.9% 44.7% 117.0%
09/28/1998 05/14/1999 Fifth Third Bancorp Enterprise Federal Bancorp,OH 104.2 51.6% 49.7% 74.4%
05/27/1997 08/08/1997 Columbia Natural Resources Inc Alamco Inc 102.8 7.7% 11.5% 16.7%
12/15/1997 02/08/1999 EVI Inc Christiana Cos Inc 102.8 -14.7% -16.5% -15.0%
11/24/1997 02/03/1998 Davel Communications Group Inc Communications Central Inc 102.4 30.2% 25.4% 12.0%
02/13/1997 08/29/1997 CFX Corp,Keene,New Hampshire Portsmouth Bank Shares,NH 102.2 33.2% 38.4% 38.4%
06/20/1997 10/23/1997 Forcenergy Inc Convest Energy Corp 102.0 11.1% 11.1% 18.9%
10/01/1998 01/07/1999 Arrow Electronics Inc Richey Electronics Inc 101.8 52.7% 68.0% 127.0%
03/24/1997 08/29/1997 CFX Corp,Keene,New Hampshire Community Bankshares,NH 101.6 63.3% 64.1% 54.7%
01/06/1998 04/01/1998 Oakwood Homes Corp Schult Homes Corp 101.4 1.1% 10.4% 19.2%
08/26/1998 01/08/1999 Salton/Maxim Houswares Inc Toastmaster Inc 101.2 3.7% 21.7% 36.6%
06/18/1999 07/26/1999 Littlejohn & Co LLC Durakon Industries Inc 101.2 32.6% 29.3% 24.9%
02/25/1998 09/30/1998 Prometheus Southeast Retail FAC Realty Trust Inc 100.0 7.0% 21.6% 29.9%
12/03/1998 04/21/1999 Texas Pacific Group Inc Denbury Resources Inc 100.0 54.0% 13.5% -9.2%
</TABLE>
<TABLE>
<S> <C> <C> <C>
-----------------------------------------------------------------------------
Pinnacle 29.9% 50.4% 29.4%
Trimmed Mean(2) 24.7% 30.4% 37.0%
Average 27.5% 33.3% 40.6%
Median 22.3% 28.0% 34.6%
-----------------------------------------------------------------------------
</TABLE>
____________________
Source: Securities Data Company, Inc.
(1) Transaction Value is defined by SDC as reported deal value, which includes
the amount paid for all common stock, C/S equivalents, Preferred Stock,
debt, options, assets, warrants and stake purchases made within six months
of the announcement date of the transaction.
(2) Trimmed average excludes the highest 10% and lowest 10% premiums paid.
DRAFT -20-
<PAGE>
-------------------------------------------------------------------------------
Exhibit C
-------------------------------------------------------------------------------
Jefferies & Company, Inc
DRAFT
<PAGE>
Selected Gaming Equity Comparables
===============================================================================
Public Trading Multiples
($ in Millions, Except Per Share Data)
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
Preferred
I/B/E/S I/B/E/S Value Stock Market
2000 2001 Stock Equity of plus Excess to Book LTM
EPS EPS Price @ Market Vested Total Assets Enterprise Equity Revenue
Company Estimate Estimate 3/24/2000 Shares Value Options Debt & Cash Value Value Multiple
------------------------- -------- -------- --------- ------ ----- ------- ---- ------ ----- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Pinnacle $1.00 $1.40 $19.250 26.3 $505.6 $17.1 $505.7 $386.7 $641.6 1.8x 1.4x
Entertainment(1)(2)(4)
Ameristar Casinos(1) $0.44 $0.55 $3.688 20.4 $75.1 $0.2 $240.0 $9.8 $305.5 1.1x 1.1x
Argosy Gaming(1)(2) 1.51 1.60 13.875 28.3 393.3 5.1 360.3 35.2 723.5 6.8x 1.2x
Boyd Gaming(1) 0.71 0.79 4.625 62.2 287.8 -- 770.7 44.6 1,014.0 1.1x 1.0x
Hollywood Casino(1)(2)(3) N/A N/A 3.750 24.9 93.6 1.1 557.6 243.4 408.9 -4.9x 1.4x
Isle of Capri 0.92 1.20 11.500 30.3 348.1 5.0 954.7 197.3 1,110.4 2.6x 1.4x
Casinos(1)(2)(4)(5)
Penn National Gaming(1) 0.86 1.04 9.313 14.9 138.8 -- 91.6 23.9 206.6 2.1x 1.2x
Station Casinos(1) 1.64 1.85 22.375 42.1 942.5 11.3 891.2 52.3 1,792.7 3.1x 1.9x
------------------------------------
------------------------------------
Trimmed Mean 2.0x 1.2x
Mean 1.7x 1.3x
Median 2.1x 1.2x
High 6.8x 1.9x
Low -4.9x 1.0x
------------------------------------
Acquisition Case
----------------
Pinnacle $1.00 $1.40 $25.000 26.3 $656.6 $32.4 $505.7 $386.7 $807.7 2.3x 1.8x
Entertainment(1)(2)(4)
<CAPTION>
---------------------------------------------------------------------------
2000E LTM 2000E 2000 2001
Revenue EBITDA EBITDA P/E P/E
Company Multiple Multiple Multiple Multiple Multiple
------------------------- -------- -------- -------- -------- --------
<S>
Pinnacle 1.2x(7) 6.3x 5.2x(7) 19.3x 13.8x
Entertainment(1)(2)(4)
Ameristar Casinos(1) 0.9x 6.4x 4.5x 8.4x 6.7x
Argosy Gaming(1)(2) 1.1x 5.9x 5.2x 9.2x 8.7x
Boyd Gaming(1) 0.9x 4.8x 3.9x 6.5x 5.9x
Hollywood Casino(1)(2)(3) 1.3x 6.7x 5.9x N/M N/M
Isle of Capri 1.3x 5.8x 5.3x 12.5x 9.6x
Casinos(1)(2)(4)(5)
Penn National Gaming(1) 1.1x 6.9x 5.9x 10.8x 9.0x
Station Casinos(1) 1.7x 8.0x 7.0x 13.6x 12.1x
------------------------------------------------
All Companies
------------------------------------------------
Trimmed Mean 1.1x 6.3x 5.4x 10.2x 8.5x
Mean 1.2x 6.4x 5.4x 10.2x 8.6x
Median 1.1x 6.4x 5.3x 10.0x 8.8x
High 1.7x 8.0x 7.0x 13.6x 12.1x
Low 0.9x 4.8x 3.9x 6.5x 5.9x
------------------------------------------------
Acquisition Case
----------------
Pinnacle 1.5x(7) 8.0x 6.3x(7) 25.0x 17.9x
Entertainment(1)(2)(4)
</TABLE>
-------------------------
(1) Unless otherwise noted, 2000 estimates are from Jefferies & Co., Inc.
High Yield Gaming Research, 3rd Quarter 1999 Market Survey, dated
December 1999.
(2) Net interest expense is pro forma for current outstanding debt for
comparison purposes.
(3) Includes financing for Hollywood Casino - Shreveport.
(4) Data is Pro Forma for mergers/acquisitions and divestitures.
(5) 2000 Estimates are for Fiscal Year End April 30, 2001.
(6) Stock price for Pinnacle is pre-Harveys buyout announcement (3/7/00).
(7) Assumes completion of Belterra Resort and Casino at cost of $163.9
million and Belterra EBITDA contribution of $44.8 million.
N/M = not meaningful, due to current construction or excessive leverage.
===============================================================================
Jefferies & Company, Inc
DRAFT
<PAGE>
Selected Gaming Equity Comparables
===============================================================================
Operating Statistics
($ in Millions, Except Per Share Data)
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
Preferred
Stock Excess 2000E LTM Net LTM
Ticker Period plus Assets LTM Net Net LTM 2000E Interest EBITDA
Company Symbol Ending Total Debt & Cash Revenue Revenue EBITDA EBITDA Expense Margin
------------------------ ------ ------ ---------- ------ ------- ------- ------ ------ ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Pinnacle PNK Dec-99 $505.7 $386.7 $449.9 $647.1 $101.3 $155.1(6) $37.6 22.5%
Entertainment(1)(2)(4)
Ameristar Casinos(1) ASCA Sep-99 $240.0 $9.8 $290.8 $331.0 $48.1 $67.4 $24.6 16.5%
Argosy Gaming(1)(2) AGY Dec-99 360.3 35.2 594.6 633.8 122.1 139.0 35.0 20.5%
Boyd Gaming(1) BYD Sep-99 770.7 44.6 969.7 1,120.5 210.6 263.3 67.7 21.7%
Hollywood Casino(1)(2)(3) HWD Sep-99 557.6 243.4 296.6 325.5 60.7 69.3 58.7 20.5%
Isle of Capri ISLE Oct-99 954.7 197.3 821.8 860.0 192.3 210.0 86.7 23.4%
Casinos(1)(2)(4)(5)
Penn National Gaming(1) PENN Dec-99 91.6 23.9 171.5 193.0 29.8 35.0 7.3 17.4%
Station Casinos(1) STN Sep-99 891.2 52.3 925.3 1,078.0 224.7 255.5 84.7 24.3%
---------------------------
---------------------------
Trimmed Mean 20.7%
Mean 20.6%
Median 20.5%
High 24.3%
Low 16.5%
===========================
Acquisition Case
Pinnacle PNK Dec-99 $505.7 $386.7 $449.9 $647.1 $101.3 $155.1(6) $37.6 22.5%
Entertainment(1)(2)(4)
<CAPTION>
--------------------------------------------------------------------------------
Total
LTM Net Debt/ Net Debt/ Total Debt/ Net Debt/
Interest LTM LTM 2000E 2000E
Company Coverage EBITDA EBITDA EBITDA EBITDA
------------------------ -------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Pinnacle 2.7x 5.0x 1.2x 3.3x 1.8x(6)
Entertainment(1)(2)(4)
Ameristar Casinos(1) 2.0x 5.0x 4.8x 3.6x 3.4x
Argosy Gaming(1)(2) 3.5x 3.0x 2.7x 2.6x 2.3x
Boyd Gaming(1) 3.1x 3.7x 3.4x 2.9x 2.8x
Hollywood Casino(1)(2)(3) 1.0x 9.2x 5.2x 8.0x 4.5x
Isle of Capri 2.2x 5.0x 3.9x 4.5x 3.6x
Casinos(1)(2)(4)(5)
Penn National Gaming(1) 4.1x 3.1x 2.3x 2.6x 1.9x
Station Casinos(1) 2.7x 4.0x 3.7x 3.5x 3.3x
-------------------------------------------------
All Companies
-------------------------------------------------
Trimmed Mean 2.7x 4.1x 3.7x 3.4x 3.1x
Mean 2.6x 4.7x 3.7x 4.0x 3.1x
Median 2.7x 4.0x 3.7x 3.5x 3.3x
High 4.1x 9.2x 5.2x 8.0x 4.5x
Low 1.0x 3.0x 2.3x 2.6x 1.9x
===================================================
Acquisition Case
Pinnacle 2.7x 5.0x 1.2x 3.3x 1.8x(6)
Entertainment(1)(2)(4)
</TABLE>
------------------------
(1) Unless otherwise noted, 2000 estimates are from Jefferies & Co., Inc.
High Yield Gaming Research, 3rd Quarter 1999 Market Survey, dated
December 1999.
(2) Net interest expense is pro forma for current outstanding debt for
comparison purposes.
(3) Includes financing for Hollywood Casino - Shreveport.
(4) Data is Pro Forma for mergers/acquisitions and divestitures.
(5) 2000 Estimates are for Fiscal Year End April 30, 2001.
(6) Assumes completion of Belterra Resort and Casino at cost of $163.9
million and Belterra EBITDA contribution of $44.8 million.
N/M = not meaningful, due to current construction or excessive leverage.
===============================================================================
Jefferies & Company, Inc
DRAFT
<PAGE>
Selected M&A Gaming Transactions
===============================================================================
($ and Shares in Millions, Except Price Per Share)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
Offer Pre Offer Price
------------------------------------
Target Acquiror Date Day Week Month
-------------------------------------- -------------------------- ------------ ---------- ---------- ------------
<S> <C> <C> <C> <C> <C>
Boomtown Biloxi and Casino Magic Bay St.
Louis * Penn National Gaming Dec-99 NA NA NA
Lady Luck Gaming Isle of Capri Casinos Oct-99 8.125 7.500 8.563
Players International * Harrahs Entertainment Feb-99 6.000 5.719 5.625
Empress Entertainment Horseshoe Gaming Jul-98 NA NA NA
Grand Casinos . Park Place Entertainment Jun-98 NA NA NA
Casino Magic Hollywood Park Feb-98 1.688 1.719 1.719
Harveys Casino Resorts Colony Capital Jan-98 22.688 22.938 21.313
Mean
Median
Max
Min
Pinnacle Entertainment . Colony Capital Mar-00 $ 19.250 $ 16.625 $ 19.313
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Notes:
------
*Pending
.Stock transaction
DRAFT
<PAGE>
Selected M&A Gaming Transactions
================================================================================
($ and Shares in Millions, Except Price Per Share)
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
Offer Option Equity Debt+ Excess
Target Price Shares Value Value Preferred Cash
------------------------------- ------- -------- -------- -------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
Boomtown Biloxi and Casino
Magic Bay St. Louis * NA NA NA NA NA NA
Lady Luck Gaming 12.000 4.9 -- 58.6 223.1 (13.2)
Players International * 8.500 32.7 3.9 281.9 163.1 (19.1)
Empress Entertainment NA NA NA NA NA NA
Grand Casinos . 6.375 42.3 -- 269.6 566.0 (67.4)
Casino Magic 2.270 35.7 -- 81.1 272.2 (35.9)
Harveys Casino Resorts 28.000 10.1 12.5 294.4 150.5 (48.3)
Mean
Median
Max
Min
Pinnacle Entertainment . $25.000 26.3 $32.2 $688.8 $505.7 $(386.7)
===========================================================================================================================
<CAPTION>
----------------------------------------------------------------------------------------
Unadjusted Adjusted
Total Other Total
Enterprise Valuation Enterprise
Target Value Amounts Value
------------------------------- ------------ ----------- ------------
<S> <C> <C> <C>
Boomtown Biloxi and Casino
Magic Bay St. Louis * $195.0 $-- $195.0
Lady Luck Gaming 268.5 -- 268.5
Players International * 425.9 -- 425.9
Empress Entertainment 600.0 -- 600.0
Grand Casinos . 768.2 -- 768.2
Casino Magic 317.3 -- 317.3
Harveys Casino Resorts 396.6 -- 396.6
Mean
Median
Max
Min
Pinnacle Entertainment . $807.7 $163.9 $971.6
========================================================================================
</TABLE>
Notes:
------
*Pending
.Stock transaction
DRAFT
<PAGE>
Selected M&A Gaming Transactions
================================================================================
($ in Shares in Millions, Except Price Per Share)
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
Raw Results Adjusted Results
---------------------------------------- ---------------------------------------
Target Revenues EBITDA Margin Revenues EBITDA Margin
------------------------------ ---------- -------- -------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Boomtown Biloxi and Casino
Magic Bay St. Louis * $ 156.7 $ 35.3 22.5% $ 156.7 $ 35.3 22.5%
Lady Luck Gaming 182.1 47.8 26.2% 182.1 47.8 26.2%
Players International * 331.1 63.3 19.1% 331.1 67.3 20.3%
Empress Entertainment 376.4 84.8 22.5% 503.1 117.4 23.3%
Grand Casinos . 578.0 131.0 22.7% 578.0 131.0 22.7%
Casino Magic 261.5 45.4 17.3% 277.2 60.6 21.9%
Harveys Casino Resorts 290.3 62.4 21.5% 309.5 67.9 22.0%
Mean
Median
Max
Min
Pinnacle Entertainment . $ 449.9 $ 101.3 22.5% $ 617.0 $ 152.0 24.6%
==================================================================================================================================
</TABLE>
Notes:
------
*Pending
.Stock transaction
DRAFT
<PAGE>
Selected M&A Gaming Transactions
================================================================================
($ in Shares in Millions, Except Price Per Share)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
Raw Multiple Adjusted Multiple Premium
---------------------- ----------------------- ----------------------------------
Target Revenues EBITDA Revenues EBITDA Day Week Month
--------------------------- ---------- -------- ---------- -------- ------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Boomtown Biloxi and Casino
Magic Bay St. Louis * 1.2x 5.5x 1.2x 5.5x NA NA NA
Lady Luck Gaming 1.5x 5.6x 1.5x 5.6x 47.7% 60.0% 40.1%
Players International * 1.3x 6.7x 1.3x 6.3x 41.7% 48.6% 51.1%
Empress Entertainment 1.6x 7.1x 1.2x 5.1x NA NA NA
Grand Casinos . 1.3x 5.9x 1.3x 5.9x NA NA NA
Casino Magic 1.2x 7.0x 1.1x 5.2x 34.5% 32.1% 32.1%
Harveys Casino Resorts 1.4x 6.4x 1.3x 5.8x 23.4% 22.1% 31.4%
Mean 1.4x 6.3x 1.3x 5.6x 36.8% 40.7% 38.7%
Median 1.3x 6.4x 1.3x 5.6x 38.1% 40.4% 36.1%
Max 1.6x 7.1x 1.5x 6.3x 47.7% 60.0% 51.1%
Min 1.2x 5.5x 1.1x 5.1x 23.4% 22.1% 31.4%
Pinnacle Entertainment . 1.8x 8.0x 1.6x 6.4x 29.9% 50.4% 29.4%
==============================================================================================================================
<CAPTION>
---------------------------------------------------------------------------
Target Adjustment Notes
--------------------------- -------------------------------------
<S> <C>
Boomtown Biloxi and Casino
Magic Bay St. Louis * None
Lady Luck Gaming Results are pro forma
Players International * Synergies
Results announcement/closing (recent
Empress Entertainment expansion as of announcement date)
Grand Casinos . Stock for asset transaction
Excess receivables/land; Interim
Casino Magic results for ramp-up of Bossier
Pro forma; Forward results for
ramp-up of expansions and prior
Harveys Casino Resorts weather
Mean
Median
Max
Min
Pinnacle Entertainment . Adjusted multiple is pro forma for
cost synergies and Belterra casino
===========================================================================
</TABLE>
Notes:
------
*Pending
.Stock transaction
DRAFT
<PAGE>
--------------------------------------------------------------------------------
Exhibit D
--------------------------------------------------------------------------------
DRAFT
<PAGE>
Pinnacle Entertainment, Inc.
--------------------------------------------------------------------------------
Discounted Cash Flow Analysis
(Dollars in Millions, Except Per Share Amounts)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
Actual Projected December 31, Terminal
----------------------------------------------------------------
12/31/99 2000 2001 2002 2003 2004 Period
------------ ------------- ----------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
EBITDA Growth 23.3% 25.7% 28.9% 2.4% 2.9% 2.5%
EBITDA Growth $ 23.6 $ 32.1 $ 45.3 $ 4.9 $ 5.9 $ 5.3
Net Income Growth 25.1% 31.4% 29.6% 3.5% 4.1% 3.5%
Net Income Growth $ 9.9 $ 15.5 $ 19.2 $ 2.9 $ 3.5 $ 3.2
Distributable Cash Flow Growth 2.7% (223.0)% 2.3% 2.7% 2.4%
Distributable Cash Flow Growth ($ 2.7) $ 230.5 $ 2.9 $ 3.5 $ 3.2
EBITDA $ 101.3 $ 124.8 $ 156.9 $ 202.2 $ 207.1 $ 213.0 $ 218.3
Dep. and Amort. 35.5 42.6 48.8 62.1 62.1 62.1 62.1
------- ------- ------- ------- ------- ------- --------
EBIT 65.8 82.3 108.1 140.1 145.0 150.9 156.2
Taxes (@ 40%) 26.3 32.9 43.2 56.0 58.0 60.4 62.5
------- ------- ------- ------- ------- ------- --------
Net Income 39.5 49.4 64.9 84.0 87.0 90.5 93.7
add: Dep. and Amort. $ 42.6 $ 48.8 $ 62.1 $ 62.1 $ 62.1 $ 62.1
(less): Capital Expenditures (192.6) (217.0) (19.0) (19.0) (19.0) (19.0)
add/(less): Working Capital Changes 0.0 0.0 0.0 0.0 0.0 0.0
------- -------- ------- ------- ------- --------
Distributable Cash Flow (100.7) (103.4) 127.2 130.1 133.6 136.8
Discount Period 0.5 1.5 2.5 3.5 4.5 5.0
Discount Rate / Factor 12.5% 0.9428 0.8381 0.7449 0.6622 0.5886 0.5549
Perpetual Growth Rate / Terminal Value 2.5% 1,368.4
------- -------- ------- ------- ------- --------
Present Values (94.9) (86.6) 94.7 86.1 78.7 759.4
Sum of Discrete Present Values $ 78.0 9.3%
Present Value of Terminal Value 759.4 90.7%
-------
Indicated Enterprise Value 837.4 100.0%
add: Pro Forma Cash 386.7 46.2%
(less): Debt (505.7) (60.4)%
add: Option Proceeds 33.5 4.0%
-------
Implied Equity Value $ 752.0 89.8%
=======
Total shares and options outstanding 28.9
Implied Value per Share $ 26.03
=======
</TABLE>
DRAFT
<PAGE>
Pinnacle Entertainment, Inc.
--------------------------------------------------------------------------------
Discounted Cash Flow Analysis
<TABLE>
<S> <C>
Cost of Equity
--------------
Beta Unlevered 0.85 - implied unlevered beta
Beta Levered 1.20 - historical small capitalization company beta
Risk Premium 8.40% - historical intermediate term market risk premium
Risk-Free Rate 6.29% - current intermediate term Treasury rate (average of 5yr and 10yr)
Small-Cap Premium 1.10% - historical small capitalization company risk premium
-------
After-Tax Cost of Equity 17.50%
Cost of Debt
------------
Cost of Bank Debt 8.00% - actual Company cost of bank debt
- % of total debt 0.0% - actual Company debt structure
Cost of Other Debt 10.00% - avg. market yield of Company public debt
Marginal Tax Rate 40.0% - actual Company tax rate
-------
After-Tax Cost of Debt 6.00%
Weighted Average Cost of Capital (WACC)
--------------------------------------
Target Capital Structure (% debt) 41.3% - based on pro forma capital structure
Weighted Average Cost of Capital 12.7% - computed from target capital structure and after-tax cost of equity
and debt
Weighted Average Cost of Capital (rounded) 12.5%
=======
Perpetual Growth Rate
---------------------
Considers long-term inflation
Considers long-term internal growth rate
Considers implied EBITDA Forward Exit Multiple
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------
Price Sensitivity Perpetual Growth Rate
------------------------------------------ ----------------------------------------------
2.0% 2.5% 3.0%
----------- ----------- -----------
<S> <C> <C> <C> <C>
Discount Rate 13.0% $22.89 $24.12 $25.46
-------------
12.5% 24.66 26.03 27.54
12.0% 26.60 28.14 29.85
------------------------------------------
EBITDA Forward Exit Multiple Sensitivity Perpetual Growth Rate
------------------------------------------ ----------------------------------------------
2.0% 2.5% 3.0%
----------- -------------- -----------
Discount Rate 13.0% 5.7x 6.0x 6.3x
-------------
12.5% 6.0x 6.3x 6.6x
12.0% 6.3x 6.6x 7.0x
</TABLE>
DRAFT
<PAGE>
Pinnacle Entertainment, Inc.
================================================================================
Pro Forma Operating Results
($ in Millions)
<TABLE>
<CAPTION>
1999 2000
-------------------------------------------------------------------------------
1997 1998 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4
---- ---- -- -- -- -- ----- -- -- -- -
Net Revenue:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Boomtown Reno $68.6 $67.5 $14.1 $21.4 $25.6 $19.4 $80.4 $16.8 $22.6 $26.0 $18.4
Boomtown New Orleans 77.9 95.6 25.7 27.2 28.5 24.6 106.0 24.2 26.3 30.0 30.0
Casino Magic Biloxi 62.3 74.2 24.6 23.1 24.3 21.3 93.3 25.3 24.2 25.1 23.5
Casino Magic Bossier City 93.2 111.2 33.9 35.1 36.1 35.1 140.1 38.5 38.6 39.8 36.9
Casino Magic Argentina 17.5 20.4 5.3 5.7 6.0 5.1 22.0 5.8 6.1 6.3 5.6
Belterra Casino - - - - - - - - - 20.4 38.7
HP- Casino Division 6.0 6.0 1.5 1.5 1.5 1.5 6.0 1.5 1.5 1.5 1.5
Crystal Park & Yakima 2.2 2.0 0.6 0.3 0.3 0.9 2.0 1.0 1.0 1.0 1.0
Corporate - - - - - - - - - - -
----- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total Net Revenue $327.7 $376.9 $105.8 $114.2 $122.2 $107.8 $449.9 $113.1 $120.3 $150.2 $155.6
Net Revenue Growth:
Boomtown Reno NA -1.6% NA NA NA NA 19.2% 18.8% 5.7% 1.6% -5.2%
Boomtown New Orleans NA 22.7% NA NA NA NA 10.9% -5.8% -3.1% 5.1% 21.8%
Casino Magic Biloxi NA 19.1% NA NA NA NA 25.7% 2.7% 5.1% 3.5% 10.3%
Casino Magic Bossier City NA 19.3% NA NA NA NA 26.0% 13.7% 9.7% 10.5% 5.3%
Casino Magic Argentina NA 16.6% NA NA NA NA 7.8% 8.0% 8.0% 5.9% 11.1%
Belterra Casino NA NA NA NA NA NA NA NA NA NA NA
Total Net Revenue Growth NA 15.0% NA NA NA NA 19.4% 6.9% 5.4% 22.9% 44.4%
EBITDA:
Boomtown Reno $8.8 $7.8 $0.9 $4.5 $6.8 $3.0 $15.2 $1.7 $5.0 $6.8 $2.3
Boomtown New Orleans 22.4 29.5 8.5 8.7 9.2 7.0 33.4 6.0 7.2 9.4 9.3
Casino Magic Biloxi 9.7 14.0 7.0 5.0 6.4 3.6 22.0 6.1 5.7 6.1 4.9
Casino Magic Bossier City 11.6 23.5 8.4 8.5 8.3 7.9 33.1 9.5 9.8 9.7 8.2
Casino Magic Argentina 6.2 8.4 2.2 2.3 2.6 1.8 8.8 2.2 2.6 2.7 2.1
Belterra Casino - - - - - - - - - 4.8 9.7
HP- Casino Division 5.8 5.8 1.5 1.5 1.5 1.5 5.8 1.5 1.5 1.5 1.5
Crystal Park & Yakima 1.7 1.7 0.6 (0.4) 0.4 0.7 1.3 0.9 0.9 0.9 0.9
Corporate (7.9) (10.3) (4.6) (6.2) (4.0) (3.6) (18.4) (4.1) (4.1) (4.1) (4.1)
------ ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total EBITDA $58.3 $80.5 $24.4 $24.0 $31.1 $21.8 $101.3 $23.8 $28.4 $37.9 $34.7
EBITDA Margin:
Boomtown Reno 12.8% 11.6% 6.7% 21.2% 26.5% 15.3% 18.9% 10.1% 22.0% 26.2% 12.6%
Boomtown New Orleans 28.7% 30.9% 32.9% 32.0% 32.4% 28.6% 31.5% 24.8% 27.5% 31.4% 31.1%
Casino Magic Biloxi 15.5% 18.9% 28.6% 21.9% 26.3% 16.7% 23.6% 24.3% 23.4% 24.4% 20.7%
Casino Magic Bossier City 12.5% 21.1% 24.7% 24.3% 23.0% 22.5% 23.6% 24.8% 25.4% 24.3% 22.2%
Casino Magic Argentina 35.2% 41.2% 40.8% 41.0% 42.8% 35.5% 40.2% 38.6% 41.9% 43.5% 37.5%
Belterra Casino NA NA NA NA NA NA NA NA NA 23.7% 25.0%
Total EBITDA Margin 17.8% 21.3% 23.1% 21.0% 25.5% 20.2% 22.5% 21.1% 23.6% 25.2% 22.3%
<CAPTION>
Projections
------------------------------------------
Total 2001 2002 2003 2004
----- ---- ---- ---- ----
Net Revenue:
<S> <C> <C> <C> <C> <C>
Boomtown Reno $83.7 $85.4 $83.3 $81.2 $81.2
Boomtown New Orleans 110.5 112.7 115.0 117.3 119.6
Casino Magic Biloxi 98.1 98.1 181.6 186.1 190.8
Casino Magic Bossier City 153.8 146.1 219.2 230.2 241.7
Casino Magic Argentina 23.8 33.3 34.6 36.0 37.5
Belterra Casino 59.1 167.0 170.4 173.8 177.3
HP- Casino Division 6.0 6.0 6.0 6.0 6.0
Crystal Park & Yakima 4.0 4.0 4.0 4.0 4.0
Corporate - - - - -
----- ------ ------ ------ ------
Total Net Revenue $539.1 $652.8 $814.1 $834.6 $858.0
Net Revenue Growth:
Boomtown Reno 4.1% 2.0% -2.5% -2.5% 0.0%
Boomtown New Orleans 4.2% 2.0% 2.0% 2.0% 2.0%
Casino Magic Biloxi 5.2% 0.0% 85.0% 2.5% 2.5%
Casino Magic Bossier City 9.8% -5.0% 50.0% 5.0% 5.0%
Casino Magic Argentina 8.2% 40.0% 4.0% 4.0% 4.0%
Belterra Casino NA 182.6% 2.0% 2.0% 2.0%
Total Net Revenue Growth 19.8% 21.1% 24.7% 2.5% 2.8%
EBITDA:
Boomtown Reno $15.8 $16.2 $15.4 $14.6 $14.6
Boomtown New Orleans 32.0 33.8 34.5 35.2 35.9
Casino Magic Biloxi 22.8 22.6 45.4 46.5 47.7
Casino Magic Bossier City 37.2 33.6 54.8 57.5 60.4
Casino Magic Argentina 9.6 13.3 13.9 14.4 15.0
Belterra Casino 14.5 44.8 46.0 46.9 47.9
HP- Casino Division 5.8 5.8 5.8 5.8 5.8
Crystal Park & Yakima 3.6 3.6 3.6 3.6 3.6
Corporate (16.5) (16.8) (17.2) (17.5) (17.9)
------ ------- ------- ------- -------
Total EBITDA $124.8 $156.9 $202.2 $207.1 $213.0
EBITDA Margin:
Boomtown Reno 18.9% 19.0% 18.5% 18.0% 18.0%
Boomtown New Orleans 29.0% 30.0% 30.0% 30.0% 30.0%
Casino Magic Biloxi 23.2% 23.0% 25.0% 25.0% 25.0%
Casino Magic Bossier City 24.2% 23.0% 25.0% 25.0% 25.0%
Casino Magic Argentina 40.5% 40.0% 40.0% 40.0% 40.0%
Belterra Casino 24.5% 26.8% 27.0% 27.0% 27.0%
Total EBITDA Margin 23.2% 24.0% 24.8% 24.8% 24.8%
</TABLE>
DRAFT
<PAGE>
Pinnacle Entertainment, Inc.
===============================================================================
Pro Forma Operating Results
($ in Millions)
<TABLE>
<CAPTION>
1999 2000
------------------------------------------ ----------------------------------
1997 1998 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4
---- ---- -- -- -- -- ----- -- -- -- --
D&A:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Boomtown Reno $1.7 $1.9 $1.8 $1.3 $6.7 $2.0 $2.0 $2.1 $2.1
Boomtown New Orleans 1.4 1.4 1.5 1.4 5.7 1.7 1.8 1.8 1.8
Casino Magic Biloxi 1.7 1.7 1.8 1.8 7.1 1.8 1.7 1.7 1.7
Casino Magic Bossier City 1.9 2.1 2.0 2.1 8.1 2.1 2.1 2.1 2.1
Casino Magic Argentina 0.4 0.4 0.4 0.4 1.6 0.4 0.4 0.4 0.4
Belterra Casino - - - - - - - 1.0 2.1
HP- Casino Division 0.6 0.6 0.6 0.6 2.4 0.6 0.6 0.6 0.6
Crystal Park & Yakima 0.4 0.4 0.4 0.4 1.5 0.4 0.4 0.4 0.4
Corporate 0.8 0.8 0.6 0.3 2.5 0.9 0.9 0.9 0.9
----- ----- ----- ----- ----- ----- ----- ----- -----
Total D&A $8.9 $9.3 $9.1 $8.2 $35.5 $9.8 $9.8 $10.9 $12.0
EBIT:
Boomtown Reno $(0.7) $2.7 $4.9 $1.6 $8.5 $(0.3) $3.0 $4.7 $0.2
Boomtown New Orleans 7.0 7.3 7.8 5.7 27.8 4.3 5.5 7.6 7.5
Casino Magic Biloxi 5.3 3.3 4.6 1.7 15.0 4.4 4.0 4.5 3.2
Casino Magic Bossier City 6.5 6.5 6.3 5.8 25.0 7.5 7.7 7.6 6.1
Casino Magic Argentina 1.8 1.9 2.1 1.4 7.2 1.8 2.2 2.3 1.7
Belterra Casino - - - - - - - 3.8 7.6
HP- Casino Division 0.9 0.9 0.9 0.9 3.4 0.9 0.9 0.9 0.9
Crystal Park & Yakima 0.2 (0.7) 0.0 0.3 (0.2) 0.5 0.5 0.5 0.5
Corporate (5.4) (7.0) (4.6) (3.9) (21.0) (5.0) (5.0) (5.0) (5.0)
----- ----- ----- ----- ------ ----- ----- ----- -----
Total EBIT $15.5 $14.7 $22.0 $13.6 $65.8 $14.0 $18.6 $26.9 $22.7
Maintenance CapEx:
Boomtown Reno $0.8 $0.8 $0.8 $0.8
Boomtown New Orleans 0.9 0.9 0.9 0.9
Casino Magic Biloxi 0.8 0.8 0.8 0.8
Casino Magic Bossier City 0.4 0.4 0.4 0.4
Casino Magic Argentina 0.3 0.3 0.3 0.3
Belterra Casino - - - 0.2
HP- Casino Division - - - -
Crystal Park & Yakima - - - -
Corporate 0.1 0.1 0.1 0.1
----- ----- ----- -----
Total Maintenance CapEx $3.2 $3.2 $3.2 $3.3
Maintenance CapEx Margin:
Boomtown Reno 4.5% 3.3% 2.9% 4.1%
Boomtown New Orleans 3.6% 3.3% 2.9% 2.9%
Casino Magic Biloxi 3.1% 3.2% 3.1% 3.3%
Casino Magic Bossier City 1.2% 1.2% 1.1% 1.2%
Casino Magic Argentina 4.6% 4.3% 4.2% 4.7%
Belterra Casino NA NA NA 0.4%
Total Maintenance CapEx Margin 2.8% 2.7% 2.1% 2.1%
Development/Expansion
CapEx:
Boomtown Reno $0.8 $2.5 $- $-
Boomtown New Orleans - 2.5 - -
Casino Magic Biloxi - - - -
Casino Magic Bossier City - - - -
Casino Magic Argentina 2.5 2.5 2.5 2.5
Belterra Casino 25.0 50.0 88.9 -
----- ----- ----- ----
Total Development/Expansion CapEx $28.3 $57.5 $91.4 $2.5
<CAPTION>
Projections
------------------------------------------
Total 2001 2002 2003 2004
----- ---- ---- ---- ----
D&A:
<S> <C> <C> <C> <C> <C>
Boomtown Reno 8.2 $8.4 $8.4 $8.4 $8.4
Boomtown New Orleans 7.1 7.2 7.2 7.2 7.2
Casino Magic Biloxi 6.8 6.8 13.5 13.5 13.5
Casino Magic Bossier City 8.3 8.3 14.9 14.9 14.9
Casino Magic Argentina 1.6 2.3 2.3 2.3 2.3
Belterra Casino 3.1 8.3 8.3 8.3 8.3
HP- Casino Division 2.4 2.4 2.4 2.4 2.4
Crystal Park & Yakima 1.5 1.5 1.5 1.5 1.5
Corporate 3.6 3.6 3.6 3.6 3.6
--- ----- ----- ----- -----
Total D&A 2.6 $48.8 $62.1 $62.1 $62.1
EBIT:
Boomtown Reno 7.6 $7.8 $7.0 $6.2 $6.2
Boomtown New Orleans 4.9 26.6 27.3 28.0 28.7
Casino Magic Biloxi 6.0 15.7 31.9 33.0 34.2
Casino Magic Bossier City 8.9 25.3 39.9 42.6 45.5
Casino Magic Argentina 8.0 11.0 11.6 12.1 12.7
Belterra Casino 1.4 36.5 37.8 38.7 39.6
HP- Casino Division 3.4 3.4 3.4 3.4 3.4
Crystal Park & Yakima 2.1 2.1 2.1 2.1 2.1
Corporate 20.1) (20.4) (20.8) (21.1) (21.5)
----- ------ ------ ------ ------
Total EBIT $82.3 $108.1 $140.1 $145.0 $150.9
Maintenance CapEx:
Boomtown Reno 3.0 $3.0 $3.0 $3.0 $3.0
Boomtown New Orleans 3.5 3.5 3.5 3.5 3.5
Casino Magic Biloxi 3.1 3.0 3.5 3.5 3.5
Casino Magic Bossier City 1.8 2.0 3.5 3.5 3.5
Casino Magic Argentina 1.1 1.0 1.0 1.0 1.0
Belterra Casino 0.2 4.0 4.0 4.0 4.0
HP- Casino Division - - - - -
Crystal Park & Yakima - - - - -
Corporate 0.4 0.5 0.5 0.5 0.5
----- ----- ----- ----- -----
Total Maintenance CapEx .9 $17.0 $19.0 $19.0 $19.0
Maintenance CapEx Margin:
Boomtown Reno 3.6% 3.5% 3.6% 3.7% 3.7%
Boomtown New Orleans 3.2% 3.1% 3.0% 3.0% 2.9%
Casino Magic Biloxi 3.2% 3.1% 1.9% 1.9% 1.8%
Casino Magic Bossier City 1.2% 1.4% 1.6% 1.5% 1.4%
Casino Magic Argentina 4.5% 3.0% 2.9% 2.8% 2.7%
Belterra Casino 0.3% 2.4% 2.3% 2.3% 2.3%
Total Maintenance CapEx Margin 2.4% 2.6% 2.3% 2.3% 2.2%
Development/Expansion
CapEx:
Boomtown Reno 3.3 $ - $ - $ - $ -
Boomtown New Orleans 2.5 - - - -
Casino Magic Biloxi - 100.0 - - -
Casino Magic Bossier City - 100.0 - - -
Casino Magic Argentina 0.0 - - - -
Belterra Casino 3.9 - - - -
---- ---- ---- ---- ----
Total Development/Expansion CapEx $179.7 $200.0 $ - $ - $ -
</TABLE>
DRAFT
<PAGE>
Pinnacle Entertainment, Inc.
--------------------------------------------------------------------------------
Excess Asset Value/(1)/
($ in Millions)
<TABLE>
<CAPTION>
Gross Associated Uncompleted Completed
Value Costs & Taxes Belterra Belterra
--------- --------------- ----------- -----------
<S> <C> <C> <C> <C>
Cash Balance, 12/31/99 $ 246.8 $ 246.8
Land Adjacent to Hollywood Park/(2)/ 24.0 10.1 13.9 13.9
Bay St. Louis & Biloxi Properties/(3)/ 195.0 25.0 170.0 170.0
Turf Paradise/(4)/ 53.0 14.6 38.4 38.4
Inglewood Land/(5)/ 63.0 21.5 41.5 41.5
Reno Land/(6)/ 4.0 - 4.0 4.0
Missouri Land/(7)/ 3.7 - 3.7 3.7
Ogle House/(8)/ 2.5 - 2.5 2.5
Insurance Proceeds/(9)/ 2.5 1.3 1.2 1.2
Notes Receivable from Roski / Yakama 14.7 - 14.7 14.7
Interim Cash Flow/(10)/ 40.8 - 40.8 40.8
Present Value of NOLs/(11)/ 10.7 -- 10.7 10.7
-------- ------- ---------- ----------
Excess Asset Value, subtotal 414.0 72.5 341.5 341.5
Belterra Project/(12)/ - (163.9)
Race Track Tax Liability (22.9) (22.9)
Accrued Interest (26.1) (26.1)
Cage Cash/(13)/ (30.0) (30.0)
Call 13% First Mortgage Notes @ 106.5 (122.5) (122.5)
---------- ----------
Pro Forma Excess Cash Balance + Excess Assets, 12/31/99 $ 386.7 $ 222.9
</TABLE>
____________________________
(1) Does not consider value of 2% interest in TVG (early stage start-up
company), option value in Louisiana license application, or tax-free
exchange savings of up to $70 million.
(2) Completed.
(3) Based on definitive purchase agreement.
(4) Based on definitive purchase agreement.
(5) Based on discussions with management and the sale of the land adjacent to
Hollywood Park as a comparable.
(6) Based on 1996 appraisal.
(7) Based on net book value.
(8) 12/31/99 Cash is Pro Forma Excess Assets + Cash, Uncompleted Belterra, less
Interim Cash Flow, Present Value of NOLs, and Call of 13% First Mortgage
Notes.
(9) Based on tentative settlement agreement.
(10) Assumes close of Colony acquisition in September: cash flow from Penn
properties for first 1.5 quarters of 2000; cash flow from Turf Paradise for
first quarter 2000; and cash flow from remaining Pinnacle properties for
first three quarters of 2000.
(11) $64 million gross, $24 million net of usage in divestitures, subject to
$4.2 million annual limitation present valued at approximate intermediate
Treasury of 6%.
(12) Excludes capitalized interest. Budget adjusted for discussions with
management.
(13) Based on discussions with management.
DRAFT
