Poster Financial Group and the Golden Nugget Group Report Full Year 2003 Results

LAS VEGAS--()--April 12, 2004---Poster Financial Group, Inc. (a wholly owned subsidiary of PB Gaming, Inc.) and the Golden Nugget Group (previously a division of MGM MIRAGE and consisting of the Golden Nugget Las Vegas and Golden Nugget Laughlin) today reported results for the full-year ended December 31, 2003. Poster Financial Group closed its acquisition of the Golden Nugget Group from MGM MIRAGE on January 23, 2004.

Acquisition and Financing Highlights

-- Poster Financial Group, Inc. ("Poster Financial") is a holding company that was incorporated in June 2003 for the purpose of acquiring the Golden Nugget Group from MGM MIRAGE (the "Acquisition"). Golden Nugget Group consists of the former MGM MIRAGE subsidiaries that own and operate the Golden Nugget hotel and casino in downtown Las Vegas (and its interest in the Fremont Street Experience), and the Golden Nugget hotel and casino in Laughlin, Nevada.

-- In December 2003, Poster Financial completed a Rule 144A offering and issued $155.0 million of 8 3/4% Senior Secured Notes due 2011 (the "Senior Notes") to fund a portion of the Acquisition purchase price, generating net proceeds of approximately $144.8 million, which were placed in escrow pending completion of the Acquisition.

-- Poster Financial entered into a bank credit facility (the "Bank Facility"), which provided a $20.0 million term loan and an additional $1.3 million drawn under a $15.0 million revolving credit facility in January 2004 to fund a portion of the Acquisition purchase price.

-- Poster Financial was capitalized with a total of $50.0 million in equity contributions from its parent, PB Gaming ($10.8 million received prior to December 31, 2003 and placed in escrow, with the balance funded at closing of the Acquisition).

-- On January 23, 2004, the funds referred to above were used to complete the Acquisition at a total cost of approximately $216.7 million, consisting of a purchase price of $215.0 million (adjusted to $213.2 million for working capital at the closing date) and approximately $3.5 million in transaction fees.

Full Year 2003 Results

For the period from inception (June 2003) through December 31, 2003, Poster Financial reported a net loss of approximately $1.5 million, consisting solely of pre-acquisition costs and expenses of $0.4 million and interest for the period December 3, 2003 through December 31, 2003 on the Senior Notes of $1.1 million.

The Golden Nugget Group reported combined net revenues of $231.2 for the full year 2003, a 4.2% increase compared to $221.8 million in 2002; operating income of $8.4 million, a 127.0% increase compared to $3.7 million in 2002; and net income of $2.9 million for 2003, compared to a net loss of $0.5 million in 2002. The results of operations for the Golden Nugget Group for fiscal years ended December 31, 2002 and 2003 are provided in Table 1.

EBITDA for the Golden Nugget Group was $21.4 million for 2003, up 28.1% compared to 2002 EBITDA of $16.7 million. The increases in operating income, net income and EBITDA are largely a result of increased operating efficiencies at the Golden Nugget Las Vegas. EBITDA is not a measurement of financial performance under generally accepted accounting principles in the United States of America ("GAAP") and should not be considered as an alternative to cash flow from operating activities, as a measure of liquidity, as an alternative to net income or as an indication of operating performance or any other measure of performance derived in accordance with GAAP. A reconciliation of net income to EBITDA is provided in Table 2.

Results for 2003 and 2002 include a management fee historically charged by MGM MIRAGE for certain corporate functions and for the use of the Golden Nugget name and related trademark. Such amounts were primarily based on a percentage of revenues, and amounted to approximately $13.2 million in 2003 and $12.6 million in 2002. In connection with the Acquisition, Poster Financial acquired the rights to the Golden Nugget name and related trademarks from MGM MIRAGE; no fee will be incurred in the future for their use.

On a pro forma basis, reflecting the Acquisition and related financing transactions as if they had occurred on January 1, 2003, Poster Financial reported the following amounts for the year ended December 31, 2003: consolidated revenues of $231.2 million, operating income of $15.6 million, net loss of $1.4 million and EBITDA of $32.5 million. A description of pro forma adjustments is provided in Table 3.

Timothy Poster, Chairman and Chief Executive Officer of Poster Financial said, "We are pleased with the properties' results for the year. This is a significant time for the Company's operations and the results are a testament to the dedication of our employees."

Management Summary / Business Outlook

Overall, we look forward to continuing to focus on our core businesses. As we effect the shift to ownership by Poster Financial, we anticipate further sharpening our focus on providing the best service in the industry.

The previous discussion reflects the results of operations of the Golden Nugget Group as a division of MGM MIRAGE. Since the closing of the Acquisition on January 23, 2004, the Golden Nugget Group has operated as a stand-alone business as part of Poster Financial. The Golden Nugget Group is not currently a separate reporting entity and has not previously presented financial statements on a stand-alone basis. Management believes the most significant impact of the Acquisition will relate to (1) operating income from the elimination of certain charges from MGM MIRAGE, (2) interest expense relating to the Senior Notes and the Bank Facility, and (3) costs and expenses of being a public reporting company.

About Poster Financial

On January 23, 2004, Poster Financial acquired the Golden Nugget Las Vegas and Golden Nugget Laughlin. Poster Financial is headquartered in Las Vegas, Nevada and was founded in June 2003 by Timothy Poster, its current Chairman and Chief Executive Officer, and Thomas Breitling, its current President, Secretary and Treasurer. Previously, Mr. Poster served as Chairman and Chief Executive Officer of Travelscape.com, Inc., from March 1998 through March 2000. Mr. Breitling previously founded Breitling Ventures, an investment firm and served as the President of Travelscape, Inc. from March 2000 to December 2001. Since January 2003, Mr. Breitling has served as Chairman and Chief Executive Officer of Insomnia Entertainment, an independent film company. Messrs. Poster and Breitling co-founded Travelscape.com and sold the company to Expedia in March of 2000.

About Golden Nugget Las Vegas

The Golden Nugget Las Vegas is the leading downtown hotel-casino and the largest by number of guestrooms. The property occupies 7.5 acres in downtown Las Vegas and is part of the Fremont Street Experience entertainment attraction developed to draw visitors to the area. It is a AAA Four Diamond property and the most luxurious in downtown Las Vegas, benefiting from over $30 million in renovations in 2001 and 2002. The hotel has 1,907 guest rooms and suites, all of which were completely renovated over the past two years, a 36,000 square foot casino space containing approximately 1,260 slot machines and approximately 58 gaming tables and 29,000 square feet of meeting and banquet space. The property renovation also included adding a new restaurant (for a total of five outlets) and additional cosmetic improvements throughout the hotel and casino.

About Golden Nugget Laughlin

The Golden Nugget Laughlin, a 300-room property on 13 acres, has 600 feet of Colorado River frontage near the center of the tourist strip in Laughlin, Nevada, about 90 miles from downtown Las Vegas in southern Clark County. The property's 32,000 square foot casino features more than 1,000 slot machines and approximately 12 gaming tables, a variety of restaurants and bars, a nightclub, and retail shops.

Cautions Regarding Forward-Looking Statements

This release contains ''forward-looking statements'' within the meaning of federal securities and case law. Forward-looking statements include statements concerning our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions and other information that is not historical information. When used in this release, the words ''estimates,'' ''expects,'' ''anticipates,'' ''projects,'' ''plans,'' ''intends,'' ''believes'' and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements, including, without limitation, our examination of historical operating trends, are based upon our current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them, but there can be no assurance that our expectations, beliefs and projections will be realized.

We disclaim any obligation to publicly update the forward-looking statements in this release or disclose any difference between our actual results and those reflected in the forward-looking statements. You are cautioned that any forward-looking statements, including statements regarding our intent, belief or current expectations, are not guarantees of future performance and involve risks and uncertainties, and that actual results may vary materially from those reflected in the forward-looking statements.

Risks and uncertainties that could cause our actual results to vary materially from those reflected in the forward-looking statements include general economic conditions in the markets in which we operate, industry-based factors and factors more specific to us such as:

-- our substantial indebtedness and our ability to meet our debt service obligations;

-- competition within the gaming industry;

-- expansion of gaming on Native American lands, including lands in California;

-- changes in gaming and non-gaming laws and regulations (including the potential legalization of gaming in a number of jurisdictions);

-- our ability to maintain licenses and regulatory approvals for the Golden Nugget properties and the ability of our officers, directors and key employees to maintain and/or obtain licenses and approvals; and

-- changes in federal, state or local tax laws or the administration of such laws.

Additional factors that could cause our actual results to vary materially from those reflected in the forward-looking statements are described in the "Risk Factors" section of the prospectus forming part of the S-4 registration statement we filed with the SEC on April 8, 2004 and our future filings with the SEC.



               TABLE 1
               GOLDEN NUGGET GROUP RESULTS OF OPERATIONS

                                 Year Ended December 31, 2003
                         ------------------------------- -------------
                                      Golden        Golden     Golden 
                                      Nugget        Nugget     Nugget 
                                     Las Vegas      Laughlin   Group
                           -------------------  ----------- ----------
                                       (dollars in thousands)
Revenues
  Casino                                 $121,601   $33,663  $155,264
  Rooms                                    41,647     3,635    45,282
  Food and beverage                        38,769    10,046    48,815
  Entertainment, retail
   and other                               12,422     1,773    14,195
                         ------------------------- --------- ---------
  Gross revenues                          214,439    49,117   263,556
  Less: Promotional
   allowances                             (24,777)   (7,547)  (32,324)
                         ------------------------- --------- ---------
  Net revenues                            189,662    41,570   231,232
                         ------------------------- --------- ---------
Cost and Expenses
  Casino                                   67,340    20,923    88,263
  Rooms                                    19,184     1,510    20,694
  Food and beverage                        26,852     4,992    31,844
  Entertainment, retail
   and other                                9,331     1,011    10,342
  Provision for doubtful
   accounts                                 1,084        14     1,098
  General and
   administrative                          33,439    10,305    43,744
  (Gain)/loss on fixed
   asset disposals                            (39)       (4)      (43)
  Depreciation                             12,732       990    13,722
  MGM MIRAGE management
   fee                                     10,718     2,452    13,170
                         ------------------------- --------- ---------
                                          180,641    42,193   222,834
                         ------------------------- --------- ---------

Operating income                            9,021      (623)    8,398
                         ------------------------- --------- ---------

Other Income (Expense)
  Equity in loss of joint
   venture                                   (771)        -      (771)
  Interest income                              34         0        34
  Interest expense                         (3,413)        0    (3,413)
                         ------------------------- --------- ---------
    Total other expense                    (4,150)        0    (4,150)

Income (loss) before
 income taxes                               4,871      (623)    4,248
Income tax (provision)
 benefit                                   (1,589)      252    (1,337)

                         ------------------------- --------- ---------
Net income (loss)                          $3,282     $(371)   $2,911
                         ========================= ========= =========


                                         Year Ended December 31, 2002
                                         -----------------------------
                                          Golden
                                          Nugget    Golden    Golden
                                            Las     Nugget    Nugget
                                           Vegas    Laughlin   Group
                                         --------- --------- ---------
                                         (dollars in thousands)
Revenues
  Casino                                 $110,885   $36,209  $147,094
  Rooms                                    38,992     3,877    42,869
  Food and beverage                        35,871    10,359    46,230
  Entertainment, retail
   and other                               14,135     1,688    15,823
                                         --------- --------- ---------
  Gross revenues                          199,883    52,133   252,016
  Less: Promotional
   allowances                             (23,154)   (7,060)  (30,214)
                                         --------- --------- ---------
  Net revenues                            176,729    45,073   221,802
                                         --------- --------- ---------
Cost and Expenses
  Casino                                   64,362    20,641    85,003
  Rooms                                    17,437     1,600    19,037
  Food and beverage                        26,463     5,966    32,429
  Entertainment, retail
   and other                               11,396     1,196    12,592
  Provision for doubtful
   accounts                                   659        18       677
  General and
   administrative                          31,028    10,994    42,022
  (Gain)/loss on fixed
   asset disposals                            (31)        0       (31)
  Depreciation                             12,169     1,563    13,732
  MGM MIRAGE management
   fee                                     10,013     2,598    12,611
                                         --------- --------- ---------
                                          173,496    44,576   218,072
                                         --------- --------- ---------

Operating income                            3,233       497     3,730
                                         --------- --------- ---------

Other Income (Expense)
  Equity in loss of joint
   venture                                   (864)        -      (864)
  Interest income                              66         0        66
  Interest expense                         (4,018)        0    (4,018)
                                         --------- --------- ---------
    Total other expense                    (4,816)        0    (4,816)

Income (loss) before
 income taxes                              (1,583)      497    (1,086)
Income tax (provision)
 benefit                                      702      (145)      557

                                         --------- --------- ---------
Net income (loss)                           $(881)     $352     $(529)
                                         ========= ========= =========


                TABLE 2
                RECONCILIATION OF NET INCOME TO EBITDA

    EBITDA consists of net income (loss) plus (i) interest expense,
(ii) income tax provision (or less income tax benefit), and (iii)
depreciation and amortization expense. EBITDA is presented as a
measure of operating performance because we believe analysts,
investors and others frequently use it in the evaluation of companies
in the gaming industry, in particular for the ability of a company to
meet its debt service requirements. Other companies in the gaming
industry may calculate EBITDA differently, particularly as it relates
to non-recurring, unusual items.
    EBITDA is not a measurement of financial performance under GAAP
and you should not consider it as an alternative to cash flow from
operating activities, as a measure of liquidity, as an alternative to
net income or as an indication of operating performance or any other
measure of performance derived in accordance with GAAP.
    The following table provides a reconciliation of net income (loss)
to EBITDA:
                                                        
                                                          Year Ended
                                                     December 31, 2003
                                                       ---------------
                                                       Golden  Poster
                                                        Nugget   Pro
                                                        Group   Forma
                                                       ---------------
                                                        (dollars in
                                                          thousands)

Net income (loss)                                       2,911  (1,371)
Interest expense                                        3,413  16,191
Income tax provision                                    1,337       -
Depreciation and amortization                          13,722  17,725
                                                       ------- -------
EBITDA                                                 21,383  32,546
                                                       ======= =======

         TABLE 3
         UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL DATA

    The following unaudited pro forma condensed combined statements of
operations give effect to the Acquisition, including the additional
capital contribution and borrowings under the Bank Facility as if they
had occurred at January 1, 2003. The pro forma financial statements
are presented for information purposes only and are not necessarily
indicative of the operating results or financial position that would
have occurred if the Acquisition, the offering of the Senior Notes and
borrowings under the Bank Facility had been completed as of December
31, 2003, nor is it necessarily indicative of future operating results
or financial position.
    The pro forma adjustments are based on available information and
upon assumptions that we believe are reasonable under the
circumstances. A final determination of the allocation of the purchase
price to the assets acquired and liabilities assumed has not been
made, and the allocation reflected in the unaudited pro forma
condensed combined financial statements should be considered
preliminary and is subject to the completion of a more comprehensive
valuation of the assets acquired and liabilities assumed. The final
allocation of the purchase price could differ from the pro forma
allocation included herein.


                          Unaudited Pro Forma Condensed Consolidated
                                    Statement of Operations
                             For the Year Ended December 31, 2003
                        ----------------------------------------------
                             Historical                     Pro Forma
                        -------------------                -----------
                          Poster                             Poster
                          Financial  Golden                  Financial
                           Group,    Nugget                   Group,
                            Inc.     Group  Adjustments        Inc.
                        -------------------------------    -----------
                                (dollars in thousands)

 Net revenues          $         -  231,232      -       $   231,232

 Cost and expenses
    Casino-hotel
     operations                  -  152,241      -           152,241
    General and
     administrative            124   43,744      1,300 (a)
                                                   555 (b)
                                                 1,688 (b)
                                                (1,918)(c)    45,493

    (Gain) loss on sale
     of assets                   -     (43)          -           (43)
    Depreciation and
     amortization                -   13,722      3,350 (d)
                                                   653 (h)    17,725

    Pre-acquisition
     development
     expenses                  259                               259
    Management fee               -   13,170    (13,170)(a)         -
                        -------------------------------    -----------
           Total costs
            and expenses       383  222,834     (7,542)      215,675
                        -------------------------------    -----------
 Operating Income             (383)   8,398      7,542        15,557

 Other income (expense)
    Equity in loss of
     joint venture               -     (771)                    (771)
    Interest income             65       34        (65) (e)       34
    Interest expense        (1,161)     (52)   (14,978) (f)  (16,191)
    Intercompany
     interest expense            -   (3,361)     3,361  (g)        -
                        -------------------------------    -----------
           Other expense    (1,096)  (4,150)   (11,682)      (16,928)
                        -------------------------------    -----------
 Income (loss) before
  income taxes              (1,479)   4,248     (4,140)       (1,371)
 Income tax provision            -   (1,337)     1,337  (i)        -
                        -------------------------------    -----------
 Net income (loss)     $    (1,479)$  2,911   $ (2,803)  $    (1,371)
                        ===============================    ===========

Notes appear on following page.

Notes to Table 3

    a) Reflects the elimination of the management fee historically
charged by MGM MIRAGE for certain corporate functions and for the use
of the Golden Nugget name and related trademark. The adjustment to
increase general and administrative expenses reflects the replacement
of the corporate functions previously provided by MGM MIRAGE, and
which were included in the management fee. Such expenses include the
salaries of the Chief Executive Officer and of the President, costs
for external audit and legal services, SEC reporting, regulatory
oversight and similar corporate functions. In connection with the
Acquisition, Poster Financial acquired the rights to the Golden Nugget
name and related trademarks; no fee for their use (or amortization of
the cost basis) will be incurred.
    b) Reflects the net increase ($555,000 on an annual basis) in base
salaries and minimum bonuses for key executives of Poster Financial
and of the Golden Nugget Group under employment contracts that became
effective upon completion of the Acquisition. The employment contracts
also provide for annual incentive bonuses in the event that
post-acquisition cumulative EBITDA (as defined) exceeds $30.0 million
in 2004, $60.0 million in 2005 and $90.0 million in 2006. The
incentive bonuses in the amount of $1,688,000 are included as pro
forma adjustments because the 2004 target EBITDA was achieved on a pro
forma basis for the year ended December 31, 2003.
    c) Reflects a reduction in general and administrative expenses for
rent ($1,477,000) previously paid to an affiliate for gaming
equipment. The equipment was purchased in connection with the
acquisition and rent will not be paid in the future. Also reflects a
reduction of approximately $441,000 for the total of (i) the
difference in the cost of transition services from MGM MIRAGE as
compared to actual allocations in the period presented, and (ii) the
elimination of allocations for certain historical expenses for the
year ended December 31, 2003 for customer service offices and other
MGM MIRAGE programs that were not part of the Acquisition.
    d) Reflects a net increase in depreciation expense, resulting from
the impact of preliminary purchase price allocation adjustments.
    e) Reflects the elimination of interest earned on funds placed in
escrow, pending completion of the Acquisition.
    f) Reflects an increase in interest expense as follows (dollars in
thousands):

                                                  (in thousands)
Interest expense on the Senior Notes at the interest rate of 8.75%
for a full year ($13,563) less interest incurred on a historical
basis for the Senior Notes in 2003
($1,078)..................................................... $12,485 

Interest expense on the Bank Facility assuming an initial draw of
$20.0 million at an assumed interest rate of one-month LIBOR plus 4.0%
(a rate of 5.12% based on LIBOR at December 31, 2003)plus a fee on the
unused portion of the facility of 0.5% per annum .............. 1,092

Interest expense on initial draw under the Bank Facility revolver
($1.3 million) at an assumed interest rate of 5.12%................67

Amortization of estimated deferred financing costs (a component of
interest expense) of $8.3 million for the Senior Notes, for a period 
of eight years, less amortization incurred on a historical basis in
2003 ($83)........................................................959

Amortization of estimated deferred financing costs (a component of
interest expense) of $1.9 million for the Bank Facility, for a period
of five years.....................................................375

Total.........................................................$14,978

    g) Reflects elimination of interest paid to MGM MIRAGE on a note
payable, which was eliminated in connection with the Acquisition.
    h) Reflects amortization of the slot player's club, an intangible
asset arising as a result of the Acquisition.
    i) PB Gaming has elected to be treated as a Subchapter S
corporation and has elected to have each of Poster Financial, GNLV and
GNL treated as a qualified Subchapter S subsidiary for federal income
tax purposes. As a result, the owners of PB Gaming will be taxed on
the income of PB Gaming, Poster Financial and the Golden Nugget Group
at a personal level and PB Gaming, Poster Financial and the Golden
Nugget Group generally will not be subject to federal income taxation
at the corporate level.

Contacts

Poster Financial Group and Golden Nugget Hotels-Casinos
Dawn Allen, 702-386-8187
or:
Brunswick Group
Nina Devlin/Diana Drobiner, 212-333-3810

Contacts

Poster Financial Group and Golden Nugget Hotels-Casinos
Dawn Allen, 702-386-8187
or:
Brunswick Group
Nina Devlin/Diana Drobiner, 212-333-3810