Pinnacle closes on us$ 95 million investment in Canadian Asian Coast Development

As a result, Pinnacle acquired a 26% equity interest in ACDL and will receive proportional representation on ACDL's board of directors; and secured a management agreement through 2058 (with the potential for a 20-year extension) for the second integrated resort of the multi-phase Ho Tram Strip destination resorts project.

Anthony Sanfilippo, President and Chief Executive Officer of Pinnacle Entertainment, said: "Our ACDL investment represents a risk-measured approach to utilizing our solid financial condition and significant free cash flow to diversify and enter one of the fastest growing gaming regions in the world.  We look forward to working with the ACDL management team on the development of a unique integrated resort complex in a market that has many attractive growth characteristics.  We believe our ability to participate as an owner and manager of the Ho Tram Strip integrated resorts will allow the Company to enhance long-term shareholder value."

The Ho Tram Strip destination resorts project is located approximately 80 miles southeast of Ho Chi Minh City, Vietnam's largest city which attracts the majority of Vietnam's 5 million tourists each year.  The first phase of the Ho Tram Strip, MGM Grand Ho Tram, is currently under construction with a planned opening in 2013. 

It will feature 541 luxury guest rooms and suites, a full spectrum of world-class restaurants and amenities, exquisite VIP accommodations, a conference center, and a spectacular entertainment area featuring 90 live table games and 500 electronic games.  The second integrated resort of the Ho Tram Strip, for which Pinnacle has secured a management agreement, will be jointly developed by Pinnacle and ACDL, and owned by ACDL.  Pinnacle and ACDL expect that the second integrated resort, which will be branded as a distinct and premium resort, will be similar in project scope to the MGM Grand Ho Tram resort that is currently under construction.