Boyd Gaming Announces Expansion of South Coast

LAS VEGAS, May 12 /PRNewswire-FirstCall/ -- Boyd Gaming Corporation today announced that the Company will more than double the number of hotel guest rooms at its South Coast Hotel and Casino now under construction in a dynamic growth area in the southern section of the Las Vegas metropolitan area. The expanded project, which also includes a spa and fitness center, will add approximately 700 hotel rooms and bring the hotel's room count to 1,350 rooms. The Company expects to start construction on the new hotel tower shortly and complete it soon after the opening of South Coast, which is anticipated in early 2006. The addition is expected to bring the property's total development cost to $600 million.

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Michael Gaughan, Chief Executive Officer of the Coast Casinos division of Boyd Gaming, commented, "Demand for hotel rooms in Las Vegas has been very strong, as evidenced by the great success of our recent rooms expansion at The Orleans. The quality and array of amenities at South Coast is expected to generate strong guest room demand at our property. While our master plan for the property calls for three hotel towers to be phased in over time, the strong market conditions convinced us that the time for building the second hotel tower is now."

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include information regarding the Company's expectations, goals or intentions regarding the future, including but not limited to statements regarding the Company's South Coast development project and the proposed expansion of the project to include the addition of approximately 700 hotel rooms, a spa and fitness center. Forward-looking statements also include statements regarding (i) the anticipated cost, as well as the anticipated timing of construction and completion of South Coast and the expansion, (ii) that the southern section of the Las Vegas metropolitan area is a dynamic growth area, (iii) the strong demand for hotel rooms in Las Vegas, (iv) the expectation that the amenities at South Coast will generate strong hotel room demand at the property and (v) the current strong market conditions. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. In particular, the Company can provide no assurances that South Coast will be completed within the Company's current estimates, commence operations as expected, include all of the anticipated amenities, features or facilities or achieve market acceptance. In addition, the South Coast development project is subject to those risks inherent in the development and operation of a new business enterprise, including unanticipated design, construction, regulatory, environmental and operating problems and lack of demand for the project. If the South Coast development project does not become operational within the time frame or project cost currently contemplated or does not successfully compete in its market, it could have a material adverse effect on the Company's business, financial condition and results of operations. Once the South Coast becomes operational, it will face many of the same risks that the Company's current properties face. The Company's anticipated costs and construction period for the South Coast development project are based upon budgets, conceptual design documents and construction schedule estimates prepared by the Company in consultation with its architects and contractors. The cost of any project, including the South Coast, may vary significantly from the Company's initial expectations, and the Company may have a limited amount of capital resources to fund cost overruns on any project. If the Company cannot finance cost overruns on a timely basis, the completion of one or more projects, including the South Coast, may be delayed until adequate funding is available. In addition to competition, increased costs (including marketing costs), changes in laws and regulations, weather, economic, credit and capital market conditions and the effects of war, terrorist or similar activity, additional factors that could cause actual results to differ are discussed under the heading "Investment Considerations" and in other sections of the Company's Form 10-K for the fiscal year ended December 31, 2004 on file with the Securities and Exchange Commission, and in its other current and periodic reports filed from time to time with the Commission. All forward- looking statements in this document are made as of the date hereof, based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.

Headquartered in Las Vegas, Boyd Gaming Corporation is a leading diversified owner and operator of 18 gaming entertainment properties, plus one under development, located in Nevada, New Jersey, Mississippi, Illinois, Indiana and Louisiana. Boyd Gaming press releases are available at http://www.prnewswire.com/. Additional news and information on Boyd Gaming can be found at http://www.boydgaming.com/.