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EXHIBIT 99
FOR IMMEDIATE RELEASE
PRESIDENT CASINOS, INC. ANNOUNCES SETTLEMENT
AGREEMENT IN BANKRUPTCY PROCEEDINGS
ST. LOUIS, MISSOURI, October 12, 2006 -- President Casinos, Inc.
("President")
(OTC:PREZQ.OB) today announced that President and its subsidiary,
President
Riverboat Casino-Missouri, Inc. ("PRC-MO"), have entered into a
Settlement
Agreement with Pinnacle Entertainment, Inc. and the Official
Committee of
Equity Security Holders (the "Official Equity Committee") of
President which
resolves the dispute between the competing alternative
bankruptcy
reorganization plans which have been filed in PRC-MO's Chapter 11
bankruptcy
proceedings pending in the United States Bankruptcy Court for the
Eastern
District of Missouri. Under the Settlement Agreement, the
alternative
reorganization plan proposed by the Official Equity Committee will
be
withdrawn, and the parties will implement various amendments to the
existing
reorganization plan filed by PRC-MO and the purchase agreement for
Pinnacle's
pending purchase of PRC-MO.
Previously, PRC-MO, which conducts President's St. Louis, Missouri
gaming
operations, had filed a plan of reorganization designed to
implement the terms
of a purchase agreement pursuant to which Pinnacle would purchase
the stock of
PRC-MO for approximately $31.5 million. Thereafter, United States
Bankruptcy
Court for the Eastern District of Missouri appointed the Official
Equity
Committee to represent the interests of the stockholders of
President. The
Official Equity Committee subsequently filed its own alternative
plan of
reorganization which, among other things, provided that President
would retain
ownership of PRC-MO and its St. Louis gaming operations and the
debt
obligations of President and PRC-MO would be reorganized with funds
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