Experience BOYD GAMING AR04

Experience BOYD GAMING AR04

1 Net revenues for the year ended December 31, 2000 include 71 million of net fee revenue which we received upon the termination of the Silver Star management agreement. 1,131,538 1 [00] 1,102,335 [01] 1,228,901 [02] 1,253,070 [03] 1,734,058 [04] 3.44 [00] 6.50 [01] 14.05 [02] 16.14 [03] 41.65 [04] Net Revenues [ in thousands; each year ended December 31] Closing Stock Prices [each year ended December 31] * Net income computed with footnote 1 above. * Diluted net income per share computed with footnote 1 above. 62,765* [00] 24,950 [01] 40,012 [02] 40,933 [03] 111,454 [04] 1.01* [00] 0.40 [01] 0.61 [02] 0.62 [03] 1.42 [04] Net Income [ in thousands; each year ended December 31] Diluted Net Income Per Share [each year ended December 31]

Making history. For decades, the Boyd name has been synonymous with ingenuity, integrity and success in the casino entertainment industry. 1975 1979 1983 1993 1994 Sam and Bill Boyd found Boyd Gaming with the opening of the California Hotel and Casino, a leading destination for Hawaiian visitors for three decades. Sam s Town Hotel and Gambling Hall opens, the first property to be developed along Boulder Highway in southeastern Las Vegas. Asked by State of Nevada to operate the Stardust pending the owner s license revocation, Boyd Gaming ultimately acquires the Stardust and Fremont in 1985. Boyd Gaming becomes a publicly traded company on the New York Stock Exchange, trading under the symbol BYD. Sam s Town Hotel and Gambling Hall opens in Tunica, Mississippi, the Company s first property outside of Nevada.

1996 2000 2001 2003 2004 Boyd Gaming and Mirage Resorts (now MGM MIRAGE) reach an agreement to develop Borgata in Atlantic City, New Jersey. Construction begins on Borgata Hotel Casino and Spa at Renaissance Pointe, a 1.1 billion development and the first new hotel casino to be built in Atlantic City in 13 years. Boyd Gaming acquires Delta Downs Racetrack in Vinton, Louisiana, in what would become a highly successful foray into the racino business, combining live racing action with casino gaming. Borgata opens to rave reviews in Atlantic City, featuring premier dining, top-notch entertainment, Las Vegas-style gaming, upscale shopping and indulgent luxury. In a blockbuster merger, Coast Casinos, Inc. becomes a wholly-owned subsidiary of Boyd Gaming, adding four Las Vegas-area casinos to the Company s portfolio of properties: Barbary Coast, Gold Coast, The Orleans, Suncoast, and South Coast, which will open in early 2006.

Experience Boyd know-how creating opportunities, building success, enhancing value 30 years and counting. Boyd Style lay a wager, do a little dance, shop, play, eat, drink, relax the possibilities are limitless.

fun

rest

winning

flavor

peace

excitement

Experience Counts Dear Fellow Shareholders: At this time last year, we felt confident about the year ahead, but nothing could have prepared us for the success we enjoyed in 2004. We exceeded even our greatest expectations. Our success of the last year can be attributed to our vast experience in the gaming, entertainment and hospitality industries. This year we proudly celebrate 30 years as a Company. It s interesting to note that Boyd Gaming figured prominently in the Wall Street Journal s annual Shareholder Scoreboard published in February. The Company ranked ninth for one-year gains, seventh for three-year gains and fifth among companies with the biggest year-over-year gains. What s more, gaming as a whole was the best performing industry for 2004, according to the Wall Street Journal. This is undoubtedly one of the most exciting times in our Company s history and a very exciting time for our industry. With the successful Coast Casino properties now part of our Company, outstanding results at Borgata in Atlantic City in 2004, and 3.9 billion in assets, Boyd Gaming is poised for great things in the future and our growth pipeline is as strong as ever. We started off the year with a familiar growth strategy through another strategic acquisition. Our track record of four previous acquisitions Par-A-Dice, Treasure Chest, Blue Chip and Delta Downs has been impressive from a number of perspectives. The 197 million acquisition of Sam s Town Shreveport in May was no different, giving us a presence in Louisiana s second-largest gaming market and our third property in Louisiana. In July, we completed our merger with Coast Casinos, Inc. The combination of our two companies created one of the most diversified casino entertainment companies in the country. Coast founder Michael Gaughan and I have known each other for over 35 years. Our fathers shared a similar love for Las Vegas, which was reflected in their spirit as they helped build this community. It is because of that experience, our two organizations coming together is a perfect fit. Michael and his team are some of the finest casino operators in our business; their experience in the Las Vegas locals market is among the best. And Coast s loyal and committed workforce is a great complement to our existing employee base. The market certainly agreed and, with a strong 2004 performance in nearly every business unit, our stock is trading near its all-time high. For the year, we reported record revenues of 1.734 billion, an increase of 38 percent over 2003, principally the result of the addition of Coast Casinos and Sam s Town Shreveport. Along with these new properties, Borgata enabled us to grow our adjusted earnings 1 and adjusted EBITDA 1 for 2004. The Company s adjusted EBITDA was 449 million in 2004 versus 263 million reported in 2003. Our adjusted earnings in 2004 were 1.48 per share, as compared to.84 per share for 2003.* Meet the New Kid on the Block Borgata, which had only six months of operations in 2003, was impressive in its first full calendar year. Led by Bob Boughner and his talented team of executives, Borgata really made a statement this year and demonstrated the potential of the Atlantic City market. Borgata reported 2004 gaming win of 638 million, the second best in the market, trailing the much larger Bally s by only 9 million. Borgata s adjusted EBITDA for 2004 was 216 million and its adjusted EBITDA margin was a healthy 31.9 percent.* * For footnote 1 and reconciliations see Financial Reconciliations page before our Form 10-K.

To give you an idea of just how well things are going in Atlantic City, in the fourth quarter, Borgata defied both conventional wisdom and historical precedent by reporting fourth quarter results similar to summer results reported for the third quarter that just doesn t happen by accident. As we have said, Borgata is proving that entertainment is not as seasonal as once thought in this very competitive market place. In 2004, Borgata reported the highest table game win in the Atlantic City market, garnering 21 percent of the table game market and topping the next closest property by a staggering 56 percent. That s why we are so excited about the two expansions projects we ve announced at Borgata. The first is our expansion of Borgata s public space, which is already underway and is expected to be complete as early as the second quarter 2006. The second expansion is the addition of a new hotel tower, expected to open in the fourth quarter of 2007. Importantly, we enjoy the unique position of adding both phases to meet existing demand. A Growing Experience In addition to the expansions taking place at Borgata, we have several other exciting opportunities for growth within our portfolio of properties. Our Blue Chip acquisition in November 1999 has proven to be one of our most successful additions. Over the last six years, we have grown that business steadily, and Blue Chip is ready for the next level. Our 163 million expansion of that property will help to redefine that product in the highly competitive northern Indiana market. The expansion will include a new mega boat that is nearly twice the size of the existing facility and will offer a spacious gaming experience on one floor. We are also enhancing the dockside pavilion, creating a more seamless entertainment experience with nearly every element in close proximity to one another. We expect to complete this project toward the end of the year. We recently completed a 65 million expansion and casino reconfiguration of Delta Downs, our racino located in Vinton, Louisiana. The addition of a 206-room hotel, new food and beverage outlets and an 850-seat events center help to better position that operation in the Lake Charles market. The casino reconfiguration allows Delta Downs to offer a more spacious environment, which is another advantage we enjoy when competing with the riverboat casinos in that market. In late October 2004, we completed a rooms expansion at The Orleans Hotel and Casino in Las Vegas. The latest addition, which brought the room total to nearly 1,900, has been well received. And, in early 2006, we will introduce the South Coast Hotel and Casino, located in the growing southern Las Vegas Valley corridor. One of the most exciting aspects of our future growth lies in the Stardust s 63 acres, part of the new development corridor in the northern segment of the Las Vegas Strip. We learned a great deal from our development experience with Borgata. We are using a similarly thoughtful process for the Stardust and have initiated a master planning phase

for that site. With Borgata, we have demonstrated our mega-resort capabilities and believe that this project will be the next defining event in our Company s history. While there is not a firm timeline in place, our Barbary Coast site, located on one of the most visible four corners on the Las Vegas Strip, offers another solid long-term growth prospect. As our Company has grown, so has our Board of Directors. We announced earlier in the year, with the Coast merger, that there would be some additional seats and some new faces on our Board. In May 2004, we welcomed Peter Thomas, who replaced the retiring Perry Whitt. Peter is a retired banker, having led one of Nevada s most successful banks before it was acquired by Bank of America. Most recently, we also welcomed Michael Gaughan, Chief Executive Officer of our Coast Casinos division, and Tom Girardi, a leading attorney, to our Boyd Gaming Board of Directors. All three new members are widely renowned in their respective professions and will undoubtedly add to the knowledge of our Board. Speaking of growth and experience, I m so pleased to recognize the promotion of Keith Smith to President of Boyd Gaming. Keith has been with us for the last 15 years and has been a member of our Management Committee for the last 12 years. He has been an integral part of the execution of our corporate strategy over that time and, as our Chief Operating Officer since 1998, has led our properties extremely well. I have every confidence that he will continue to excel in his new role and help me lead our Company into the future. As you know, Don Snyder announced his retirement early last year, and I would like to personally thank him for his service and wish him the best of luck in the years to come. Don helped us create a strategic plan that not only has guided us during the last eight years, but will take us well into the next decade. And, if you know Don, then you know this is really just a retirement from his day job. Don has always been a key community leader and has plans to continue that work making Las Vegas a better place for all of us. Growing Diversity Focusing on diversity and looking at more ways to be a truly inclusive organization one that makes full use of the contributions of all employees is more than just a nice idea; it is good business sense that yields greater productivity and competitive advantage, from employee satisfaction, all the way to the bottom line. While we have had a number of diversity initiatives over the years, we have now formalized efforts to make the most of our resources. Led by our Vice Chair, Marianne Boyd Johnson, we are pleased to report that our diversity program made great strides this year in areas such as recruiting and training employees and further developing supplier relationships. Experience Counts In our 30 years as a Company, we have learned a great deal. Experience counts. Perhaps that s why Boyd Gaming was recently included as one of America s Most Admired Companies in Hotels, Casinos and Resorts by Fortune magazine. To create the list, Fortune asked executives, directors and securities analysts from 65 industries to rate companies using several key attributes of reputation including quality of management, financial soundness, long-term investment value, employee talent, quality of products and services, innovation and social responsibility. Boyd Gaming experienced phenomenal success in 2004, and we believe strongly that the Company is poised for even greater success in 2005. Thanks to our employees and you, our shareholders, for your support and dedication. Sincerely, William S. Boyd Keith E. Smith Chairman and Chief Executive Officer President and Chief Operating Officer

S TA R D U S T R E S O R T and C A S I N O C A L I F O R N I A H OT E L and C A S I N O F R E M O N T H OT E L and C A S I N O M A I N S T R E E T S TAT I O N C A S I N O B R E W E R Y and H OT E L S A M S TO W N H OT E L and G A M B L I N G H A L L J O K E R S W I L D C A S I N O Las Vegas Strip Downtown Las Vegas Downtown Las Vegas Downtown Las Vegas Boulder Strip Boulder Strip Hotel features 1,552 guest rooms and suites Classic Las Vegas entertainment experience Top name entertainment performances Approximately 75,000 square feet of casino action One of the top race and sports books in Nevada 63 acre site includes a 2.5 acre outdoor complex, complete with tropical landscaping, tree-lined walkways, waterfalls and swimming pool Hawaiian-themed property caters to unique market niche with approximately 70 percent of all hotel guest trips originating from Hawaii Hotel features 781 guest rooms, including 74 luxury suites, and a richly appointed lobby Bridge Avenue skywalk spans high above Main Street and offers guests a variety of small shops and food outlets Hotel features 447 guest rooms The Second Street Grill and Tony Roma s have earned top honors from the Zagat Survey Restaurant Guide 32,000 square feet of casino action Outstanding location and special events within the Fremont Street Experience enhance exposure to visitors 28,500 square feet of gaming amidst a turn-ofthe-century atmosphere Hotel features 406 guest rooms Consistently recognized in the annual Las Vegas Review-Journal s Best of Las Vegas for Best Downtown Hotel and Casino Brewmasters at the Triple 7 Brewery have received top honors at the Great American Beerfest for outstanding microbrews 25,000 square foot indoor park surrounded by 648 guest rooms 56-lane bowling center and 18-screen movie theater Selected this year as one of the Best by Casino Player readers in 48 categories for the Best Local Las Vegas Casino Features Billy Bob s Steakhouse, named a Favorite Steakhouse by What s On magazine s online Visitors Choice Awards and Zagat Survey award winner 22,500 square feet of gaming action Recognized by the Better Business Bureau of Southern Nevada for its excellence and commitment to providing the highest quality service Jokers Wild features live poker, keno, and a sports book Casino fl oor spans 133,000 square feet and is one of the largest in Las Vegas

E L D O R A D O C A S I N O B A R B A R Y COA S T H OT E L and C A S I N O G O L D COA S T H OT E L and C A S I N O T H E O R L E A N S H OT E L and C A S I N O S U N COA S T H OT E L and C A S I N O S O U T H COA S T H OT E L and C A S I N O PA R - A - D I C E H OT E L C A S I N O Downtown Henderson Las Vegas Strip Las Vegas Las Vegas Las Vegas Las Vegas East Peoria, Illinois 16,000 square feet of casino action Recently remodeled video poker bar, Tequila Falls, features numerous 36 televisions and is known for its wonderful fl avored margaritas Gaming experiences also include a sports book, keno lounge and bingo First purchased by the Boyd family in 1962 Located on the famous four corners, with Bellagio, Caesars and Bally s Each of the property s 197 luxurious rooms and suites feature warm, inviting décor highlighted by textured wallpaper, original paintings, handsome wood trim and etched mirrors 30,000 square feet of gaming action Both Drai s and Michael s restaurants have been named among the Top 5 in the Zagat Survey of y Las Vegas Restaurants 87,000 square feet of casino action Hotel features 711 guest rooms Features more than 30,000 square feet of banquet and convention meeting space with full catering services Spacious, comfortable race and sports book room features 43 color screens broadcasting major events from all over the world 70-lane bowling center Hotel features 1,885 rooms with latest tower addition completed in October 2004 Spa Orleans and Fitness Center features a wide array of services and amenities, including a full-service salon and barber shop 135,000 square feet of casino action Features seven fullservice restaurants The 9,500-seat Orleans Arena adjoins the property and offers top-name entertainment and special events Hotel features 419 spacious guest rooms complete with fl oor-to-ceiling windows 82,000 square feet of casino action Property surrounded by 81 holes of world-class golf Approximately 25,000 square feet of meeting and banquet facilities accommodate groups from 10 to 1,000 64-lane bowling center, 16-screen movie theater and 550-seat showroom Under development and expected to be completed in early 2006 A 25-story hotel tower will include more than 600 rooms and 27 suites in its fi rst phase Planned 80,000 square feet of casino action Convention Center will feature 80,000 square feet of contiguous exhibit space and 17 meeting rooms, ranging in size and amenities, to accommodate any group South Coast will also be home to one of the fi nest equestrian centers in North America Hotel features 208 guest rooms 26,000 square feet of dockside casino action Dining offerings include Nelson s Deli, Boyd s Steakhouse and the remodeled Island Buffet Named Best Casino by readers of Illinois Magazine and Best Hotel in the Midwest by the Heart of Illinois Hospitality Association 70-lane bowling center, 18-screen movie theater, 850-seat showroom

B L U E C H I P C A S I N O and H OT E L D E LTA D O W N S R A C E T R A C K C A S I N O and H OT E L S A M S TO W N H OT E L and C A S I N O T R E A S U R E C H E S T C A S I N O S A M S TO W N H OT E L and G A M B L I N G H A L L B O R G ATA H OT E L C A S I N O and S PA Michigan City, Indiana Vinton, Louisiana Shreveport, Louisiana Kenner, Louisiana Tunica, Mississippi Atlantic City, New Jersey Hotel features 188 guest rooms 42,500 square feet of casino action Voted Best Casino in numerous categories by readers of the South Bend Tribune and Post Tribune newspapers, and Strictly Slots magazine. Named Employer of the Year by the LaPorte County Visitors Bureau In the midst of a 163 million expansion, including a new boat, new dining outlets and additional public and casino space 65 million expansion completed in early 2005, which included a 206-room hotel, new food and beverage outlets and events center Live thoroughbred and quarter horse racing nine months a year Elegant Outlook Steakhouse offers magnifi cent view of the race track Hotel features 514 beautifully appointed guest rooms and suites 30,000 square feet of casino action Health club, spa and salon features state-of-the-art fi tness center, steam room and a full range of spa services Property features beautifully landscaped, heated outdoor pool Concierge fl oor and lounge offers exclusive access and special services for VIP guests 24,000 square feet of dockside casino action along Lake Pontchartrain Features 1,150 square feet of multipurpose space, perfect for business meetings and special occasions Leading New Orleans riverboat since its opening in 1994 Hotel features 1,070 guest rooms 75,000 square feet of gaming Amenities include restaurants, lounge and RV park Entertainment highlights include Scottish links-style golf and the 1,650-seat River Palace Arena Tunica is the nation s third largest gaming destination, behind Las Vegas and Atlantic City The 43-story hotel tower includes 2,000 spacious guest rooms and suites serving up luxury in the form of Egyptian cotton sheets, fl oor-to-ceiling windows, warm wood foyers and polished marble tiles 11 restaurants, including Suilan by Susanna Foo, which was named one of the Best New Restaurants in America by John Mariani, a noted food critic for Esquire magazine Hosts premier entertainers like comedians Dave Chappelle, Kevin James and Chris Rock, and musical acts David Bowie, Bon Jovi and Sting 50,000 square foot spa and salon, 11 retail shops, 70,000 square feet of event and convention space

Experience the difference. Our diverse portfolio of properties allows guests to enjoy a wide range of experiences from local charm and simple indulgences, to ultimate luxury and nonstop action.

At your service. Whether you want to get away from it all or feel right at home, Boyd Style hospitality will take you there. High above the Atlantic City lights, in the bronze and glass tower of the Borgata, awaits a Piatto Suite just for you. With its floor-to-ceiling windows, natural wood foyer, Egyptian cotton sheets and multi-media entertainment center, these suites are 1,500 square feet of pure indulgence. You ll feel at home all right, only better. Way better. Boyd Style hospitality means treating guests to a generous supply of indulgences and service beyond compare. That s true if you crave the over-the-top luxury of Borgata or if you prefer the casual charm of our signature Sam s Town properties. With over 11,000 rooms and suites in 11 gaming markets, you can take your pick. Of course, our hospitality extends far beyond a comfortable room in which to retreat. Recharge with a workout at one of our state-of-the-art fitness centers or relax with a massage and herbal body wrap at one of our spas. Savor a delicious meal in any number of our award-winning restaurants, shop till you drop at our unique retail establishments or enjoy a frozen cocktail by one of our sparkling swimming pools. Or savor a delicious meal in any number of our award-winning restaurants, such as Michael s at the Barbary Coast, which was recently named among the top 10 restaurants in the country by GQ magazine. We re at your service. A GROWING EXPERIENCE The Orleans Hotel and Casino in Las Vegas recently completed an expansion that added a third tower to the property. The new 21-story tower adds 461 rooms to the Mardi Gras-themed hotel casino, bringing the total to 1,885 rooms and suites. And at Delta Downs Racetrack Casino and Hotel in southwest Louisiana, a new 206-room hotel, food court and lounge give our guests even more reasons to visit and will allow us to build upon the success of this property.

From the high-power action of NASCAR to the high-stakes thrill of the casino floor, Boyd Style entertainment offers an experience to remember. Let the good times roll. It s about variety. We understand our guests ideas of a fun and memorable experience are as different as they are themselves. That s why we offer a range of entertainment opportunities to suit any sensibility. At Borgata last year, headliners ranging from rocker Alice Cooper to the refined Moscow Ballet thrilled audiences in the event center. Country Music Hall of Fame inductee Willie Nelson recently dazzled fans at Sam s Town Tunica, and the sweet squeal of legendary jazz trumpeter Chuck Mangione energized the 550-seat showroom at the Suncoast in Las Vegas. Last summer, the cast of the world-renowned Cuban production Havana Night Club The Show arrived in Las Vegas for its historic United States debut performance at the Stardust and earned rave reviews. A GROWING EXPERIENCE A 163 million expansion and renovation of the Blue Chip Casino and Hotel in Michigan City, Indiana, will make it one of the largest floating casinos in the United States. At the center of the redevelopment effort is a new casino boat that will offer 65,000 square feet of gaming on one level. Outside dimensions of the multi-level boat are 402 feet by 208 feet, making it the largest hull size of any casino gaming vessel certified by the United States Coast Guard. For those guests who want a little more get-up-and-go in their entertainment, we ve got dancing, shopping and casino action. We ve got NASCAR, movies and horse racing. We ve got bowling, golf and car shows. So, what s your idea of fun? Yeah, we ve got that, too. top: Nascar, Sam s Town Las Vegas, Sam s Town Tunica; middle: Stardust, Borgata, Delta Downs; bottom: Stardust, Sam s Town Las Vegas, The Orleans

Building the experience. Boyd has a high-performing portfolio of properties and real opportunities for future internal growth and expansion. Go with your strengths, that s our motto, and from day one Borgata has been a virtual powerhouse. Thousands of guests, from everyday locals to big-name celebrities, have flocked to its glittering casino, posh suites and abundant amenities the first new hotel casino to hit Atlantic City in 13 years. Demand has been phenomenal, and we re already reinvesting in Borgata to keep the momentum going. Nationally-acclaimed restaurateurs Bobby Flay, Michael Mina and Wolfgang Puck each will add their culinary skills to new destination restaurants at Borgata. Plans also include additional treatment rooms for the spa and new retail shops. And for our gamers, we re adding more slot machines and gaming tables, and creating the largest poker room on the East Coast. A second tower, scheduled to open in the fourth quarter of 2007, will add approximately 800 more luxurious rooms to the 2,000 already available. A GROWING EXPERIENCE In May 2004, Sam s Town Shreveport became our third Louisiana property. It features a charming nineteenth-century style paddlewheel riverboat casino, a 514-room luxury hotel tower and the largest convention center in northwest Louisiana. As part of our grand opening celebrations, we unveiled a 5 million reinvestment project that greatly upgrades the property s interior and enhances its entertainment and dining venues. In Las Vegas, we re expanding our strong presence in the locals market. On the south end of the Las Vegas Strip, one of the fastest growing segments of the valley, construction is underway on South Coast Hotel and Casino. The Southern California-inspired resort will be home to a sizable convention center, as well as all the gaming and entertainment amenities that have made its fellow Coast Casino and Boyd Gaming properties famous, including a movie theater complex, 64-lane bowling center, race and sports book, and numerous restaurants. South Coast will also feature a 25-story hotel tower and equestrian complex, which is expected to be one of the finest indoor horse facilities in North America. With various enhancements underway or recently completed at several of our other high-performing properties Blue Chip, Sam s Town Shreveport, The Orleans, and Delta Downs we re feeling strong indeed. Experience the excitement. top: Delta Downs, The Orleans, Borgata; middle: Delta Downs, Sam s Town Shreveport, Blue Chip; bottom: South Coast, South Coast rendering

The voice of experience. For 30 years, diversity in the workplace has helped us to become stronger and richer as a Company and as individuals. Boyd Gaming s build-from-within philosophy has helped develop a management team of remarkable depth and expertise. Our Company s co-founder, Sam Boyd, was one of the first casino operators to recognize the advantages of diversity in the workplace something unheard of in the late 1950s and early 1960s. He also was the first to employ women as dealers. Sam s house policy was always that employees be rated on performance without regard to race, creed or sex. This commitment remains strong throughout the Company today. A GROWING EXPERIENCE In 2004, we implemented an applicant tracking system that enhanced our diversity efforts in several ways. Extensive sourcing outreach to schools, social service agencies, government agencies and groups that support people with disabilities ensures that our openings are publicized as widely as possible. By offering the application process in both Spanish and English, we also reach out to the large pool of quality workers who are more comfortable communicating in Spanish. Boyd Gaming is committed to exploring all development opportunities for our employees through our extensive recruiting and training efforts. With the insight and support of our new Diversity Committee, we have taken several steps in 2004 to broaden our outreach and the ease with which all candidates can express interest in job openings. We also have become more active as a Company in developing our supplier partnerships. The purchasing team developed a strategic plan, consistent policies and new reporting tools that will help us better identify and develop these relationships. This will help make our Company more effective in achieving long-term small-business economic development goals, as well as in meeting our commitments to the communities where we do business. We also understand that diversity is about far more than just race and gender. Diversity includes factors such as personality, family and parental status, educational background, religious beliefs and work experience. Thus, having a truly diverse work environment benefits all employees by nurturing more effective teams, reducing conflict on the job and creating a greater understanding of our customers.

DIRECTORS SENIOR MANAGEMENT William S. Boyd Michael O. Maffie Management Committee Senior Corporate Management Chairman of the Board and Former Chief Executive Officer William S. Boyd Paul J. Chakmak Chief Executive Officer of Southwest Gas Corporation Chairman of the Board and Senior Vice President Finance and the Company Chief Executive Officer Treasurer Billy G. McCoy Marianne Boyd Johnson Major General USAF (Ret) Marianne Boyd Johnson Brian A. Larson Vice Chairman of the Board and Chairman Vice Chairman of the Board and Senior Vice President, Senior Vice President of the Company Luscombe Aircraft Corporation Senior Vice President Secretary and General Counsel Robert L. Boughner Frederick J. Schwab Keith E. Smith Senior Operating Management Chief Executive Officer Former President and President and Christopher R. Gibase Borgata Hotel Casino and Spa, Chief Executive Officer Chief Operating Officer Senior Vice President Operations a joint venture of the Company Porsche Cars North America, Inc. Robert L. Boughner Hector Mon William R. Boyd Keith E. Smith Chief Executive Officer Senior Vice President Operations Vice President of the Company President and Chief Operating Borgata Hotel Casino and Spa Central Region Officer of the Company Michael Gaughan William R. Boyd William J. Noonan Chief Executive Officer Peter M. Thomas Vice President Senior Vice President Administration Coast Casinos, a subsidiary Managing Director of the Company Thomas & Mack Co. LLC Michael Gaughan Stephen S. Thompson Chief Executive Officer Senior Vice President Operations Thomas V. Girardi Veronica J. Wilson Coast Casinos Nevada Region Partner President and Chief Executive Officer Girardi and Keese Blind Center of Nevada Ellis Landau Executive Vice President and Luther Mack Jr. Chief Financial Officer Former Chairman Nevada Athletic Commission, President and Chief Executive Officer Mack Associates, Inc. (Owner of McDonald s Restaurants)

INVESTOR INFORMATION INVESTOR CONTACTS DIVIDENDS AND STOCK PRICES Stock Listing The common stock of Boyd Gaming Corporation is listed on the New York Stock Exchange. Its symbol is BYD. As of February 28, 2005, there were 1,174 stockholders of record. Annual Meeting The annual meeting of stockholders of Boyd Gaming Corporation will be held on Thursday, May 12, 2005 at 11:00 a.m. PDT at the Gold Coast Hotel and Casino in Las Vegas, Nevada. Record date for the meeting is March 31, 2005. Common Stock Transfer Agent and Registrar Wells Fargo Shareowner Services 161 North Concord Exchange South St. Paul, MN 55085 800.468.9716 www.wellsfargo.com/com/shareowner_services Independent Registered Public Accounting Firm Deloitte & Touche LLP 490 North Tower 3773 Howard Hughes Parkway Las Vegas, NV 89109 702.893.3100 Financial Contacts: Ellis Landau Executive Vice President and Chief Financial Officer 702.792.7210 702.792.7313 fax Paul J. Chakmak Senior Vice President Finance and Treasurer 702.792.7212 702.792.7214 fax Media Contact: Rob Stillwell Vice President Corporate Communications 702.792.7353 702.692.8735 fax 2950 Industrial Road Las Vegas, NV 89109.1150 News Releases As a service to our stockholders and prospective investors, additional information on the Company, including news releases, earnings announcements and corporate governance information are available at www.boydgaming.com. The Board of Directors initiated a quarterly dividend in July 2003 at a rate of 0.075. In July 2004 the Board raised the quarterly dividend to 0.085. Dividends are paid only when declared by the Company s Board of Directors. The ranges of high and low closing sales prices of the Company s stock on the New York Stock Exchange for the last two fiscal years are as follows: 2004 2003 High Low High Low First quarter 23.18 15.75 14.56 11.42 Second quarter 26.83 21.79 17.32 12.49 Third quarter 28.15 24.53 18.30 14.84 Fourth quarter 42.26 27.75 16.75 13.57 NEW YORK STOCK EXCHANGE CORPORATE GOVERNANCE MATTERS Pursuant to Section 303A.12 (a) of the NYSE Listed Company Manual, Boyd Gaming s CEO must certify to the NYSE each year (i) whether or not he is aware of any violations of the NYSE Corporate Governance listing standards and (ii) that the Section 302 Certifications of the Sarbanes-Oxley Act were filed with the SEC. On June 15, 2004, Mr. Boyd submitted the Annual CEO Certification to the NYSE, which stated that he was not aware of any violations. Additionally, on March 15, 2005 Boyd Gaming filed its Form 10-K with the SEC for the year ended 2004, which included the Section 302 certifications.

FINANCIAL RECONCILIATIONS The following table reconciles net income based upon generally accepted accounting principles to adjusted net income and adjusted net income per share. Year Ended December 31 (In thousands, except per share data) 2004 2003 The following table reconciles adjusted EBITDA to net income. Year Ended December 31 (In thousands) 2004 2003 Net income 111,454 40,933 Adjustments Gain on sales of undeveloped land (9,880) Other, net (429) Borgata investment tax credit (9,684) Preopening expenses 2,308 Preopening expenses from Borgata 19,593 Merger, acquisition and transition related expenses 6,534 Blue Chip consulting termination fee 5,000 One-time Indiana gaming tax charge 3,452 Loss on early retirement of debt 4,344 Indiana state income tax assessment 5,725 Income tax effect for above adjustments 675 (8,712) Adjusted net income 116,047 55,266 Adjusted net income per diluted share 1.48.84 Weighted average diluted shares outstanding 78,235 66,163 The following table reconciles operating income to adjusted EBITDA for Borgata. Year Ended December 31 (In thousands) s 2004 Operating income 158,572 Depreciation and amortization 56,811 Loss on asset disposal 184 Adjusted EBITDA 215,567 Adjusted EBITDA Boulder Strip 49,438 39,622 Coast Casinos 105,474 Stardust 18,016 9,563 Downtown Properties 38,738 40,511 Central Region (a) 191,198 177,365 Wholly-owned property adjusted EBITDA 402,864 267,061 Corporate expense (33,338) (22,595) Wholly-owned adjusted EBITDA 369,526 244,466 Our share of Borgata s operating income before preopening expenses and our amortization expenses 79,286 18,151 Total adjusted EBITDA 448,812 262,617 Other operating costs and expenses Deferred rent 1,994 Other, net (429) Depreciation and amortization 137,447 94,224 Blue Chip consulting termination fee 5,000 Preopening expenses 2,308 Merger, acquisition and transition related expenses 6,534 Our share of Borgata s preopening expenses 19,593 Total other operating costs and expenses 152,854 113,817 Operating income 295,958 148,800 (a) Adjusted EBITDA results for the year ended December 31, 2004 exclude a 5.0 million charge related to a Blue Chip consulting termination fee. Adjusted EBITDA results for the year ended December 31, 2003 include a one-time charge for a retroactive gaming tax imposed by the State of Indiana of 3.5 million. (b) Net of interest income and amounts capitalized. (c) Results for the year ended December 31, 2004 include 5.7 million of tax expenses, net of federal tax benefit, related to the Indiana Department of Revenue s assessment for state income taxes. 1 Adjusted Earnings are earnings before preopening expenses, merger, acquisition and transition related expenses, a Blue Chip consulting termination fee, the portion of the Borgata s investment tax credit related to prior periods, gain on sales of certain assets, non-cash loss on early retirement of debt and charges associated with an Indiana state tax assessment and a one-time Indiana retroactive gaming tax. Adjusted Earnings (and Adjusted EPS) are presented solely as a supplemental disclosure because management believes that it is a widely used measure of performance in the gaming industry and as this measure is considered by many to be a better measure on which to base expectations of future results than net income computed in accordance with generally accepted accounting principles ( GAAP ). A reconciliation of net income based upon GAAP to Adjusted Earnings and the presentation of Adjusted EPS are each included in the financial schedules on this page. EBITDA is earnings before interest, taxes, depreciation, amortization, preopening expenses, acquisition and merger related expenses, a Blue Chip consulting termination fee, deferred rent, the gain on sales of certain assets, loss on early retirement of debt, and our share of Borgata s non-operating expenses. EBITDA is presented solely as a supplemental disclosure because the Company believes that it is a widely used measure of operating performance in the gaming industry and is a principal basis for valuation of gaming companies. Specifically, EBITDA is presented before preopening expenses as it represents a measure of performance of the Company s existing operational activities. The Company uses property EBITDA (EBITDA before corporate expense) as the primary measure of the operating performance of each of its properties, including the evaluation of operating personnel. EBITDA should not be construed as an alternative to operating income, as an indicator of the Company s operating performance or as an alternative to cash flow from operating activities, as a measure of liquidity, or as any other measure determined in accordance with GAAP. The Company has significant uses of cash flows, including capital expenditures, interest payments, income taxes and debt principal repayments which are not reflected in EBITDA. Also, other gaming companies that report EBITDA information may calculate EBITDA in a different manner than the Company. Other non-operating costs and expenses Interest expense, net (b) 101,841 74,231 Loss on early retirement of debt 4,344 Gain on sales of undeveloped land (9,880) Our share of Borgata s non-operating expenses, net 12,554 8,754 Total other non-operating costs and expenses 108,859 82,985 Income before provision for taxes and cumulative effect 187,099 65,815 Provision for income taxes (c) 75,645 24,882 Net income 111,454 40,933

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