PENN NATIONAL GAMING, INC. AND SUBSIDIARIES

               Summary Consolidated Statement Of Income
           (In thousands, except per share data) (unaudited)

                     	Three Months Ended           	Nine months Ended
                        	September 30,              	September 30,
                 		 --------------------------    	----------------------
                     	2002            2001        		2002           2001
                    	 ----            ----       		 ----           ----

Total revenues     	$175,399        $145,006    	$494,028      $381,632

Earnings from
 joint venture          	437             459       		1,761         2,020

Total operating
 expenses           	137,725         113,214     	388,003       299,018
                   	 -------         -------    		 -------       -------

Earnings before
 interest,
 taxes, depreciation
  and amortization
 (EBITDA)            	38,111          32,251     		107,786        84,634

Depreciation and
 amortization        	 9,271           8,491      		25,725        23,305

Loss on change
 in fair value of
 interest rate
 swaps(1)             	(2,396)            -      		(5,411)           -

Total other expenses	 (10,532)       (11,895)   	(30,948)       (32,312)
                     	---------      --------  		--------      ---------

Income before
 income taxes        	 15,912         11,865     		45,702         29,017

Taxes on income        5,968          4,152     		17,310         10,204
                      	 -----          -----     		------         ------

Net income before
 extraordinary item    9,944          7,713     		28,392         18,813

Extraordinary item(2)	    -              -        		5,151            -
                     	--------        -------   		-------       ---------

Net Income(1)         $9,944         $7,713    		$23,241        $18,813
                    	 ========        =======   	=======       =========

Per share data:(1)(3)
Basic net income before
extraordinary item     $0.25          $0.25     		$0.76          $0.62
                   	 ========        ======== 	========      =========
Extraordinary item       -               -      		$0.14            -
                    	 ========        ========  	========      =========
Basic net income       $0.25           $0.25    $0.62          	$0.62
                     	========        ========  	========      =========

Diluted net income
 before extraordinary
 item                  	$0.25           $0.24     		$0.73         $0.59
                      	 =====           =====     	=====         =====
Extraordinary item      -                -       		$0.13           -
                    	 ========        ========   	 =====       ========
Diluted net income     $0.25           $0.24     		$0.60         $0.59
                       	=====           =====     	=====         =====

Shares outstanding:
Basic                 	39,115          30,934     		37,304       30,542
                     	 ======          ======     	======       ======
Diluted               	40,225          32,086     		38,672       31,672
                      	======          ======     	======       ======