Landrys Restaurants SC 13E3 Going private transaction | LNY 17 Jul 08

Materials Prepared for the Special Committee –

June 15, 2008

Project Lasso

*****************************************************************************

***************

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Exhibit (c)(4)

PROJECT LASSO

Disclaimer

The

following

materials

were

prepared

solely

for

discussion

the

meeting

the

Special

Committee

the

Board

Directors

Lasso

(“Lasso”

or the “Company”) scheduled for June 15, 2008. The following materials are for discussion purposes only and are incomplete

without reference to, and should be viewed in conjunction with, the oral presentation provided by Cowen.

Please note that Cowen has been retained by the Special Committee of the Board of Directors of Lasso to render an opinion as to the

fairness,

from

financial

point

view

the

holders

the

Common

Stock,

other

than

Tilman

Fertitta

and

any

other

holders

who

will

become affiliates of, or direct or indirect investors in, Fertitta Holdings, Inc. or Merger Sub, of the consideration to be received by Lasso

stockholders in connection with the Transaction (as defined herein).

In preparing this presentation, Cowen has, with your consent, relied upon information provided to Cowen by Lasso and publicly available

information. Cowen has not independently verified any such information, and has relied on it being complete and accurate in all

material respects.

Please note that this presentation is based on the business and operations of Lasso as represented to Cowen as of the date hereof, and

does not purport to take into consideration any information or events arising subsequent to such date. Cowen makes no representation

or warranty that there has been no material change in the information provided or reviewed by Cowen in connection herewith.

This

presentation

subject

the

assumptions,

qualifications

and

limitations

set

forth

herein

and

the

form

our

fairness

opinion

letter and does not constitute a recommendation by Cowen to the Special Committee of the Board of Directors on how to vote with

respect to the proposed transaction.

PROJECT LASSO

Table of Contents

Executive Summary

II.

Lasso Overview

III.

Valuation Analysis

Valuation Considerations

Valuation Summary

IV.

Appendix

Weighted Average Cost of Capital

Page

Executive Summary

PROJECT LASSO

Cowen Mandate

Note:

Capitalized terms not defined herein have the definitions given them in the draft Agreement.

(a)

See pages 27 –

30.

Cowen

has

been

retained

the

Special

Committee

the

Board

Directors

Lasso

render

its opinion as to the fairness, from a financial point of view, to the stockholders of Lasso, other

than Tilman J. Fertitta and any other holders who will become affiliates of, or direct or indirect

investors in, Fertitta Holdings, Inc. or Merger Sub, of the consideration to be received by such

stockholders

connection

with

the

Transaction,

pursuant

the

terms

the

Agreement

In connection with its evaluation, Cowen has reviewed, among other things:

draft

the

Agreement

received

June

12,

2008,

which

the

most

recent

draft

made

available to Cowen;

Certain publicly available financial and other information for the Company, including equity

research, and certain other relevant financial and operating data furnished to Cowen by the

Company’s management;

Certain internal financial analyses, financial forecasts, reports and other information

concerning

the

Company

(the

“Lasso

Management

Scenario”)

(a)

prepared

the

Company’s

management;

Discussions Cowen has had with certain members of the Company’s management concerning

the historical and current business operations, financial conditions and prospects of the

Company and such other matters Cowen deemed relevant;

Certain operating results of the Company as compared to the operating results of certain

publicly traded companies Cowen deemed relevant;

The reported price and trading histories of the shares of the common stock of the Company

as compared to the reported price and trading histories of certain publicly traded companies

Cowen deemed relevant;

Certain financial terms of the Transaction as compared to the financial terms of certain

selected business combinations Cowen deemed relevant;

Based

the

Lasso

Management

Scenario,

the

cash

flows

generated

the

Company

standalone basis to determine the present value of the discounted cash flows

A copy of the Appraisal of Various Landry’s Properties, dated April 30, 2008, prepared by

Snyder Valuation; and

Such other information, financial studies, analyses and investigations and such other factors

that Cowen deemed relevant for the purposes of our opinion

PROJECT LASSO

Transaction Overview

(a)

Lasso proposes to enter into an Agreement and Plan of Merger (the “Agreement”), pursuant to

which Tilman J. Fertitta

would acquire the issued and outstanding common stock of Lasso that he

does not already own through a merger of a subsidiary of Fertitta Holdings, Inc. with and into

Lasso (the “Transaction”)

Lasso stockholders will receive $21.00 per share in cash for each share of Lasso common stock

The offer values Lasso at approximately $1,184.2 million

(b)

on a fully diluted basis

Structure

Consideration

Value

(a)

Based on a draft version of the Agreement received on June 12, 2008, which is the most recent version made available to Cowen. Capitalized terms not defined herein have the definitions given

them in the draft Agreement.

(b)

Represents a transaction value based on fully diluted shares outstanding including 15.370 million shares of common stock, 0.775 million shares of restricted stock and 0.333 million shares from

option dilution, using the treasury method, per SEC filings and information received from management in June 2008.

PROJECT LASSO

Transaction Summary Statistics

Implied Multiples of Proposed Transaction

(US$ in millions, except per share data)

(a)

As of June 12, 2008.

(b)

Per Lasso 10-Q for the period ended March 31, 2008.

(c)

Options outstanding per Lasso management as of June 2008. Common stock equivalents calculated using the treasury stock method.

(d)

Cash and equivalents exclude $11.0 million in mandatory cash that is physically held on premises of the Golden Nugget properties

per discussions with Lasso management.

(e)

Includes adjustments for excess corporate real estate, the automobile dealership adjoining the corporate headquarters and pending litigation settlements.

(f)

As of March 31, 2008.

(g)

Adjusted LTM EBITDA includes adjustments for non-recurring pre-opening expense, leap year and non-recurring litigation.

(h)

Per Reuters as of June 12, 2008.

(i)

EPS estimates per Lasso management as of June 2008. Assumes no refinancing of the 9.5% interest rate Senior Notes at the restaurant level until December 2014 maturity.

(j)

Assumes pro forma interest from the refinancing of the $395.7 million, 9.5% interest rate restaurant debt on December 31, 2008 at 13.0% per discussions with Lasso management.

Current

(a)

Offer

Assumed Lasso Price per Share

$16.36

$21.00

Basic Shares Outstanding

(b)

16.145

Common Stock Equivalents

(c)

0.220

0.333

Fully Diluted Shares Outstanding

16.364

16.477

Implied Equity Value

267.7

346.0

Plus: Total Debt

(b)

884.6

Less: Cash and Equivalents

(b) (d)

(34.6)

Less: Valuation Adjustments

(e)

(11.8)

Implied Enterprise Value

1,105.9

1,184.2

Implied Multiple

Statistic

Current

(a)

Offer

Enterprise Value as a Multiple of:

(f)

LTM Revenue

1,183.1

0.9x

1.0x

Adjusted LTM EBITDA

(g)

185.5

6.0x

6.4x

Stock Price as a Multiple of EPS

2008E EPS (Consensus)

(h)

1.24

13.2x

16.9x

2008E EPS (Mgmt.)

(i)

1.31

12.5x

16.0x

2009E EPS (Consensus)

(h)

1.25

13.1x

16.8x

2009E EPS (Mgmt. with Refinancing)

(j)

1.49

11.0x

14.1x

2009E EPS (Mgmt. without Refinancing)

(i)

2.04

8.0x

10.3x

PROJECT LASSO

Offer

Historical Spot Prices

Spot

$21.00

Spot Prices Prior to June 12, 2008:

1-Day ($16.00)

$16.00

31.3%

1-Week ($16.78)

16.78

25.1%

1-Month ($15.52)

15.52

35.3%

3-Months ($17.98)

17.98

16.8%

Historical Spot Prices Prior to January 28, 2008

(a)

1-Day ($16.67)

$16.67

26.0%

1-Week ($14.79)

14.79

42.0%

1-Month ($19.87)

19.87

5.7%

3-Months ($27.75)

27.75

(24.3%)

Offer

Historical Average Prices

Average

21.00

Average Prices Prior to June 12, 2008:

1-Week ($16.54)

$16.54

27.0%

1-Month ($16.11)

16.11

30.3%

3-Months ($16.39)

16.39

28.1%

Average Prices Prior to January 28, 2008

(a)

1-Week ($15.94)

$15.94

31.8%

1-Month ($16.67)

16.67

26.0%

3-Months ($21.39)

21.39

(1.8%)

Premiums Analysis

Lasso Offer Price to Spot and Average Stock Prices

Note:

Factset, as of June 12, 2008.

(a)

Represents pre-affected stock price prior to initial offer.

II.

Lasso Overview

PROJECT LASSO

Lasso owns and operates 180

full-service and certain limited-

service restaurants, and select

hospitality and entertainment

properties

77.3% of total 2007 revenue

67.2% of total 2007 EBITDA

2.6% 2007 revenue growth

Lasso Overview

Restaurants

Gaming

Hospitality

Entertainment

Lasso consists of two main

operating divisions: the

restaurant division and the

gaming division

Restaurant Division

22.7% of total 2007 revenue

32.8% of total 2007 EBITDA

14.9% 2007 revenue growth

Gaming Division

PROJECT LASSO

Historical

LTM

2004

2005

2006

2007

As of 3/31/08

Total Revenues

783.4

877.3

1,114.2

1,171.9

1,183.1

Costs and Expenses:

Cost of Sales

219.3

227.8

253.2

259.9

261.6

Labor

225.5

262.8

362.0

379.4

385.2

Other Operating

193.9

217.6

282.0

295.8

298.9

Unit-level Profit

144.8

169.1

217.0

236.8

237.5

General and Administrative

48.0

46.8

50.4

51.0

51.4

Pre-opening

3.0

5.3

4.0

3.7

Stock Compensation Expense

0.4

0.7

7.6

4.8

4.4

EBITDA

93.3

118.7

153.8

177.1

178.0

Depreciation and Amortization

38.1

43.7

56.3

65.7

67.3

EBIT

55.2

75.0

97.5

111.4

110.7

Asset Impairment Expense

1.7

3.5

Interest

10.5

31.2

49.1

72.3

79.5

Pretax Income

43.0

43.8

44.9

39.0

31.3

Taxes (As Reported)

(10.1)

13.7

13.2

14.0

2.8

Net Income from Continuing Operations

53.1

30.0

31.7

25.0

28.5

Taxes (Adjusted)

(a)

9.4

14.0

15.1

13.2

10.7

Net Income from Continuing Operations (Adjusted)

33.6

29.8

29.7

25.8

20.5

Other

13.5

0.0

(2.4)

(2.2)

21.7

(Income)/Loss from Discontinued Operations

(26.9)

(14.8)

55.8

9.2

Net Income

47.0

44.6

(23.7)

18.9

(10.4)

EPS from Continuing Operations

1.21

1.29

1.35

1.33

1.26

Average Shares Outstanding

27.8

23.0

22.0

19.4

16.4

Growth:

Total Revenues

12.0%

27.0%

5.2%

EBITDA

27.1%

29.6%

15.2%

Net Income from Continuing Operations

48.1%

8.1%

(12.7%)

EPS from Continuing Operations

79.1%

13.0%

(1.0%)

Margins:

Unit-level Profit

18.5%

19.3%

19.5%

20.2%

20.1%

EBITDA

11.9%

13.5%

13.8%

15.1%

15.0%

Net Income from Continuing Operations

2.6%

3.4%

2.9%

2.4%

1.7%

Balance Sheet:

Cash

(b)

201.4

45.3

31.3

39.6

45.6

Total Debt

561.2

817.9

711.2

888.7

884.6

Historical

Income

Statement

(2004

–

2008)

(US$ and shares in millions, except per share data)

Historical GAAP Income Statement

Note: Lasso completed the acquisition of the Golden Nugget on September 27, 2005. Excludes discontinued operations.

(a)

Taxes normalized at 32.0%.

(b)

Includes $11.0 million in mandatory cash that is physically held

on premises of the Golden Nugget properties per discussions with Lasso management.

PROJECT LASSO

Historical Division-Level Contribution and Growth

(US$ in millions)

Historical Division-Level Contribution and Growth

Note:

Per Lasso management. No EBITDA adjustments were made to the 2005 and 2006 financials.

(a)

Lasso completed the acquisition of the Golden Nugget on September 27, 2005.

(b)

In 2005 through the LTM period, pre-opening expense is allocated at the unit-level for the restaurants.

(c)

$3.0 million of G&A is allocated to the Golden Nugget, updated from previous assumption in May 2008. Restaurant G&A includes stock based compensation expense and adjusts for non-recurring

pre-opening expense, non-recurring litigation costs and leap year adjustments, where applicable.

LTM

% Change

2005

2006

2007

As of 3/31/08

2005-2006

2006-2007

Revenue

Landry's Division

405.4

445.4

459.6

9.9%

3.2%

Saltgrass

152.8

168.8

175.2

10.5%

3.8%

Rainforest Café

and T-Rex

253.5

268.7

271.2

6.0%

0.9%

Restaurant Total

811.6

882.8

906.0

918.1

8.8%

2.6%

Golden Nugget

(a)

65.6

231.4

265.9

265.0

252.5%

14.9%

Total

877.3

1,114.2

1,171.9

1,183.1

27.0%

5.2%

Unit-level Profit

(b)

Landry's Division

75.3

80.0

81.5

6.2%

1.8%

Saltgrass

31.7

35.2

38.0

11.1%

7.7%

Rainforest Café

and T-Rex

47.2

47.8

49.5

1.2%

3.4%

Restaurant Total

154.3

163.1

168.9

172.2

5.7%

3.6%

Golden Nugget

(a)

11.8

48.7

64.0

61.6

312.2%

31.3%

Total

166.1

211.8

232.8

233.8

27.5%

10.0%

Unit-level Profit Margin

Landry's Division

18.6%

18.0%

17.7%

Saltgrass

20.8%

20.9%

21.7%

Rainforest Café

and T-Rex

18.6%

17.8%

18.2%

Restaurant Total

19.0%

18.5%

18.6%

18.8%

Golden Nugget

(a)

18.0%

21.0%

24.1%

23.2%

Total

18.9%

19.0%

19.9%

19.8%

G&A and Other

(c)

Restaurants

44.1

45.3

Golden Nugget

(a)

3.0

Total

47.4

58.0

47.1

48.3

Division-level EBITDA

(b)(c)

Restaurants

124.8

126.9

Golden Nugget

(a)

61.0

58.6

Total

118.7

153.8

185.8

185.5

PROJECT LASSO

(70.0%)

(60.0%)

(50.0%)

(40.0%)

(30.0%)

(20.0%)

(10.0%)

0.0%

10.0%

20.0%

06/11/07

08/02/07

09/23/07

11/14/07

01/06/08

02/27/08

04/19/08

06/11/08

Lasso

Comparable Restaurants

Comparable Casino and Gaming

S&P 500

Indexed Stock Performance

Restaurant and Casino and Gaming Stock Performance

Note: Factset as of June 12, 2008.

Comparable Restaurants include: Benihana, Brinker International,

California Pizza Kitchen, CEC Entertainment, McCormick & Schmick’s, O’Charley’s and Ruby Tuesday.

Comparable Casino and Gaming includes: Ameristar Casinos, Boyd Gaming, Isle of Capri Casinos, Monarch Casino & Resort, Pinnacle Entertainment, Riviera Holdings and Trump Entertainment.

PROJECT LASSO

Restaurant and Gaming Stock Performance Since April 4 Bid

Restaurant and Casino and Gaming Stock Performance Since April 4, 2008

Note: Factset as of June 12, 2008.

(a)

“All Restaurants”

include: AFC Enterprises, Benihana, BJ’s Restaurants, Bob Evans, Brinker, Buffalo Wild Wings, Burger King, California Pizza Kitchen, Caribou Coffee, Carrols Restaurants Group, CBRL

Group, CEC Entertainment, Cheesecake Factory, Chipotle Mexican Grill, CKE Restaurants, Cosi, Darden, Denny’s Corp., Domino’s Pizza, Einstein Noah Restaurant Group, Jack in the Box, Kona Grill,

Krispy Kreme, Luby’s, McCormick & Schmick’s, McDonald’s, Morton’s, O’Charley’s, P.F. Chang’s, Panera Bread, Papa John’s, Peet’s Coffee & Tea, Red Robin, Rubio’s, Ruby Tuesday, Ruth’s Chris, Sonic,

Starbucks, Steak N Shake, Texas Roadhouse, Tim Hortons, Wendy’s and Yum Brands.

(b)

“Lasso Comparable Restaurant Universe”

includes: Benihana, Brinker International, California Pizza Kitchen, CEC Entertainment, McCormick & Schmick’s, O’Charley’s and Ruby Tuesday.

(c)

“All Casino and Gaming”

includes: Ameristar Casinos, Boyd Gaming, Century Casinos, Churchill Downs, Dover Downs, Isle of Capri Casinos, Lakes Entertainment, Las Vegas Sands Corp., MGM Mirage,

Monarch Casino & Resort, MTR Gaming Group, Pinnacle Entertainment, Riviera Holdings, Trump Entertainment and Wynn Resorts.

(d)

“Lasso Comparable Casino and Gaming Universe”

includes: Ameristar Casinos, Boyd Gaming, Isle of Capri Casinos, Monarch Casino & Resort, Pinnacle Entertainment, Riviera Holdings and Trump

Entertainment.

% Change from April 4, 2008

to June 12, 2008

Mean

Median

All Restaurants

(a)

(6.3%)

(8.5%)

Lasso Comparable Restaurant Universe

(b)

(9.8%)

(8.4%)

All Casino and Gaming

(c)

(16.9%)

(21.1%)

Lasso Comparable Casino and Gaming Universe

(d)

(20.8%)

(24.7%)

PROJECT LASSO

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

8.0x

9.0x

10.0x

11.0x

12.0x

13.0x

6/08

10/06

2/05

6/03

10/01

2/00

6/98

Lasso

Comparable Restaurants

Comparable Casino and Gaming

(Multiple)

10-year Casino Average (8.3x)

10-year Restaurant Average (8.1x)

10-year Lasso Average (6.5x)

Historical EBITDA Multiples

Analysis of 10-Year Historical LTM EBITDA Trading Multiples

Lasso has traded at an

average of 6.5x EBITDA

over the past 10 years

Note: Factset as of June 12, 2008.

Comparable Restaurants include: Benihana, Brinker International,

California Pizza Kitchen, CEC Entertainment, McCormick & Schmick’s, O’Charley’s and Ruby Tuesday.

Comparable Casino and Gaming includes: Ameristar Casinos, Boyd Gaming, Isle of Capri Casinos, Monarch Casino & Resort, Pinnacle Entertainment, Riviera Holdings and Trump Entertainment.

PROJECT LASSO

Number of

Restaurants

Saltgrass Steak House

Fish Tales

Rainforest Café

Fisherman's Wharf

Chart House

Flying Dutchman

Landry's Seafood House

Fuddruckers

Crab House

Gandy Dancer

Charley's Crab

Grand Concourse

Aquarium

La Griglia

Babin

Meriwethers

Big Fish

Peohe's

Cadillac Bar

Pesce

Grotto

Red Sushi

Joe's Crab Shack

River Crab

Take Away

Rusty Duck

Willie G's

Simm's Landing

Brenners

Tower of the Americas

Harlow's

T-Rex

Vic & Anthony's

Yak & Yeti

Total

180

Current Restaurant Concepts

Note:

Per public filings and discussions with Lasso management as of June 2008.

Units by Concept as of March 31, 2008

Lasso currently operates 34

different restaurant

concepts

PROJECT LASSO

Historical

As of

2000

2001

2002

2003

2004

2005

2006

2007

3/31/08

Number of Restaurants:

Landry's Division

The Crab House Division

Chart House Division

C.A. Muer Division

Saltgrass Steak House Division

Rainforest Café Division

T-Rex

Yak & Yeti

Red Sushi

Other

Total (Excluding Joe's)

146

148

153

162

169

176

177

Annual Growth %

(1.2%)

78.0%

1.4%

3.4%

5.9%

4.3%

4.1%

Joe's Crab Shack

105

109

121

138

144

149

Total

188

191

267

286

297

311

179

180

Historical and Projected Units by Concept

Unit Ramp Analysis by Concept

Note:

Per public filings and discussion with Lasso management. Certain divisions include select other concepts.

PROJECT LASSO

(4.2%)

(5.7%)

(3.2%)

1.1%

(1.4%)

(6.8%)

0.5%

(1.2%)

2.7%

(0.9%)

(0.8%)

2.2%

3.5%

4.1%

2.0%

0.2%

0.3%

(1.2%)

(0.3%)

0.1%

0.3%

(1.7%)

0.4%

3.5%

(5.4%)

0.3%

(3.1%)

(0.2%)

0.1%

(8.0%)

(6.0%)

(4.0%)

(2.0%)

0.0%

2.0%

4.0%

6.0%

2001

2002

2003

2004

2005

2006

2007

2008

Same-Store Sales Growth

Lasso

Same-Store

Sales

Growth

(Q1

2001

2008)

Note:

Quarterly same-store sales per Lasso management. Results for 2005 and after exclude same-store sales for discontinued/sold Joe’s Crab Shack locations. Results for 2004 and prior include same-

store sales for all Joe’s Crab Shack locations.

PROJECT LASSO

Lasso Income Statement Comparison

(US$ and shares in millions, except per share data)

2007 Results vs. Budget vs. Research

Note:

Estimates from Wall Street research published April 2, 2007 after the release of selected Q4 2006 data on March 30, 2007.

(a)

Per Lasso management version "2007 Update -

Flat Case".

2007

2006

Change

2007

Actual vs.

Analyst

Actual vs.

Actual

vs. 2006

Budget

(a)

Budget

Estimate

Analyst

Est.

Revenues

$1,171.9

$1,114.2

5.2%

$1,178.5

(0.6%)

$1,243.4

(5.7%)

Gross Margin

22.2%

22.7%

(55) bp

23.4%

(118) bp

G&A Ratio

4.8%

5.2%

(45) bp

4.2%

51 bp

4.3%

44 bp

Operating Margin

9.5%

8.4%

107 bp

9.0%

54 bp

9.5%

1 bp

Operating Income

$111.4

$94.0

18.5%

$105.6

5.4%

$118.1

(5.7%)

Interest Expense

$72.3

$49.1

47.2%

$53.6

34.8%

$55.6

30.0%

Pretax Margin

3.5%

4.2%

(72) bp

4.4%

(87) bp

5.0%

(150) bp

Net Income

$27.3

$34.1

(20.0%)

$35.2

(22.5%)

$42.5

(35.8%)

Diluted EPS

$1.41

$1.55

(9.0%)

$1.60

(11.9%)

$1.90

(25.8%)

Shares Outstanding

19.4

22.0

(11.8%)

22.0

(11.8%)

22.4

(13.4%)

PROJECT LASSO

Lasso Summary Balance Sheet as of March 31, 2008

(US$ in millions)

Current Balance Sheet

Note:

Per Lasso 10-Q for the period ended March 31, 2008.

(a)

Includes $11.0 million in mandatory cash that is physically held

on premises of the Golden Nugget properties per discussions with Lasso management.

As of

03/31/08

12/31/07

Liabilities and Stockholders' Equity

Current Liabilities

Accounts Payable

64.6

74.9

Accrued Liabilities

143.6

137.7

Income Taxes Payable

1.6

0.8

Current Portion of Long-term Notes and Other Obligations

477.2

87.2

Liabilities Related to Discontinued Operations

3.1

4.0

Total Current Liabilities

$ 690.1

$ 304.7

Long-term Notes, Net of Current Portion

407.4

801.4

Other Liabilities

102.9

80.0

Total Liabilities

$ 1,200.4

$ 1,186.1

Stockholders' Equity

Common Stock

0.2

Additional Paid-in Capital

219.4

218.4

Retained Earnings

115.7

115.0

Accumulated Other Comprehensive Loss

(28.0)

(16.6)

Total Stockholders' Equity

$ 307.2

$ 316.9

Total Liabilities and Stockholders’ Equity

$ 1,507.6

$ 1,503.0

As of

03/31/08

12/31/07

Assets

Current Assets

Cash and Cash Equivalents

(a)

45.6

39.6

Accounts Receivable

16.4

24.3

Inventories

34.5

35.3

Deferred Taxes

23.2

21.6

Assets Related to Discontinued Operations

9.4

10.0

Other Current Assets

12.8

12.6

Total Current Assets

$ 142.0

$ 143.5

Property and Equipment

1,252.1

1,250.1

Goodwill

18.5

Other Intangible Assets

39.0

39.1

Other Assets

56.0

51.7

Total Assets

$ 1,507.6

$ 1,503.0

PROJECT LASSO

Description

Initial

Fund Date

Expiration

Date

Amount

Comments

Restaurant Division

$300 Million Bank Syndicate Credit Facility

Dec. 2004

12/28/2009

$ 77.0

LIBOR + 150 bps; interest only

9.5% Senior Notes

Oct. 2007

12/15/2014

395.7

9.5%; interest only; noteholder put option at 101 from

2/28/2009 to 12/15/2011; upon change-of-control,

must repurchase at 101, Tilman Fertitta is excluded

7.5% Senior Notes

Dec. 2004

12/15/2014

4.3

7.5%; interest only; upon change-of-control, must

repurchase at 101, Tilman Fertitta is excluded;

represents portion not tendered in exchange for 9.5%

Senior Notes

Non-recourse Long-term Note Payable

(a)

May 2003

May 2010

10.6

9.39% interest

Seller Note

Nov. 2010

4.0

7.0%; interest paid monthly

Other Long-term Notes

Varied

0.0

$38,331 at various interest rates; principal and interest

paid monthly

Total Restaurant Debt

$ 491.6

Gaming Division

$50 Million Revolving Credit Facility

Jun. 2007

6/30/2013

$ 18.0

LIBOR + 200 bps; interest only

$330 Million First Lien Term Loan

Jun. 2007

6/30/2014

210.0

LIBOR + 200 bps; 1% of principal paid quarterly

beginning 9/30/2009; no prepayment penalty; Tilman

Fertitta excluded from change-of-control acceleration

$165 Million Second Lien Term Loan

Jun. 2007

12/31/2014

165.0

LIBOR + 325 bps; interest only; prepayment allowed

after two years, 2% penalty in year 2, 1% penalty in

years 3 and 4; Tilman Fertitta excluded from change-of-

control acceleration

Total Gaming Debt

$ 393.0

Total Debt

$ 884.6

Cash

(b)

34.6

Net Debt

850.0

Lasso Debt Overview as of March 31, 2008

(US$ in millions)

Debt Overview

Note:

Per Lasso 10-Q as of March 31, 2008.

(a)

Represents the mortgage note for the Holiday Inn.

(b)

Excludes $11.0 million in mandatory cash that is physically held

on premises of the Golden Nugget properties per discussions with Lasso management.

Lasso has a number of debt

facilities at both the

restaurant and gaming

divisions

PROJECT LASSO

Research Analyst

Comments

Rating

EPS

BB&T

Barry Stouffer

May 12, 2008

Investors should note that the range of possible results next year is "wide enough to

drive a truck through." (March 12, 2008)

In our view, Lasso has taken a lack of transparency to new heights, making earnings

forecasting more challenging. The lack of unit growth means that EPS will be highly

sensitive to changes in comps and margins. We believe this variability will be

exacerbated going forward by the Q307 repurchase of roughly 20% of the outstanding

stock and given that interest expense will consume about 70% of FY08 operating

income in our revised EPS model. (November 14, 2007)

We believe a credible argument could be made that Lasso should trade on the lower en

of the industry range based on several factors, including a high degree of leverage, lack

of transparency with respect to the performance of the company's various operations,

well below-average historical return on assets, limited EPS momentum and poor

earnings visibility. (November 14, 2007)

Hold

2008E – $1.02

2008E (prior) – $1.15

2008E (prior) – $1.27

2008E (prior) - $1.39

2009E – $1.15

2009E (prior) - $1.30

CL King

Michael Gallo

May 9, 2008

The primary risk is that Lasso will need to refinance its debt by early 2009 and that the

credit markets remain very challenging. Additionally, Lasso operates in the challenging

consumer and restaurant environment. (April 7, 2008)

Lasso noted that it will not provide any guidance for 2008, given the uncertainty of

rates and timing of a potential refinancing of its Senior Notes. (March 12, 2008)

Neutral

Strong Buy (prior)

2008E – $1.30

2008E (prior) – $1.50

2008E (prior) – $1.70

2009E – $1.25

2009E (prior) – $1.50

Cowen

Paul Westra

March 11, 2008

Given Lasso's uniquely high capital leverage and business focus

(restaurants/entertainment/gaming), we believe that such diverse interests may be

best served in a private entity - at least in the near term or until financial/consumer

markets become more stabilized. (January 28, 2008)

As has been typical over the past two years with Lasso, there were many moving parts

and charges that will be further clarified on today's 4PM EST conference call...Despite

the lack of EPS visibility driven by Lasso's casino reconstructions and debt-refinancings,

we nevertheless continue to believe Lasso shares represent compelling value.

(November 8, 2007)

Outperform

2008E – $1.40

2008E (prior) – $1.70

SMH Capital

William Hamilton

May 13, 2008

Because of the potential impact and lack of visibility on timing, management refrained

from providing earnings guidance for 2008. (March 12, 2008)

Management has shifted the company's focus away from the lower-end casual dining

and toward a blend of high-end restaurants and gaming. We applaud that move but, in

our opinion, the growth strategy going forward is not very clear and a lack of

transparency clouds visibility. (November 20, 2007)

The conflicting trends between the restaurant and gaming business, along with the lack

of transparency, lead us to believe that there is no compelling reason now to buy or sell

the stock. (August 21, 2007)

Neutral

2008E – $1.24

2008E (prior) – $1.60

2008E (prior) – $1.50

2008E (prior) – $1.73

2009E – $1.35

2009E (prior) – $1.64

Current Research Sentiment

Recent Commentary from Lasso Research Coverage

Note: Per Wall Street Research. Rating and EPS are from the most recent available research report, unless noted as "(prior)".

PROJECT LASSO

47.6%

12.8%

39.6%

Insider Ownership

Top Ten Institutional Holders

Other Holders

Shareholder Class / Owner

Options

Total

% of Total

Direct Insider and Beneficial Ownership

Tilman J. Fertitta

5,731,481

900,000

6,631,481

38.0%

Steven L. Scheinthal

55,800

84,500

140,300

0.8%

Richard H. Liem

38,143

20,000

58,143

0.3%

K. Kelly Roberts

7,856

4,000

11,856

0.1%

Jeffrey L. Cantwell

4,495

13,700

18,195

0.1%

Kenneth W. Brimmer

3,713

8,000

11,713

0.1%

Michael S. Chadwick

3,000

15,600

18,600

0.1%

Michael H. Richmond

3,000

9,600

12,600

0.1%

Joe Max Taylor

3,000

2,800

5,800

0.0%

Total Insider Ownership

5,850,488

1,058,200

6,908,688

39.6%

Top Ten Institutional Ownership

Deutsche Bank Investment Management, Inc.

1,717,073

9.9%

Dimensional Fund Advisors, Inc.

1,557,740

8.9%

Royce & Associates LLC

1,051,000

6.0%

Columbia Management Advisors, Inc.

876,899

5.0%

Barclays Global Investors NA (California)

713,078

4.1%

Peregrine Capital Management, Inc.

652,674

3.7%

Goldman Sachs Asset Management (US)

602,898

3.5%

Vanguard Group, Inc.

480,642

2.8%

American Financial Group Asset Management

356,300

2.0%

Principal Global Investors LLC

290,448

1.7%

Top Ten Institutional Ownership

8,298,752

47.6%

Other Holders

1,995,307

228,319

2,223,626

12.8%

Total Shares Outstanding

16,144,547

(a)

1,286,519

(b)

17,431,066

100.0%

Summary Ownership Profile

Ownership by Major Classification

Note: Per Factset

and Lasso public filings as of June 12, 2008.

(a)

Basic shares from 10-Q for the period ended March 31, 2008.

(b)

Options outstanding per Lasso management as of June 2008.

Lasso’s ownership is highly

concentrated between the

CEO, Tilman J. Fertitta, and

the top ten institutional

shareholders

PROJECT LASSO

Lasso Three-Year Historical Stock Performance

Lasso Three-Year Historical Stock Price / Volume Chart

Note: Factset as of June 12, 2008.

14.00

16.00

18.00

20.00

22.00

24.00

26.00

28.00

30.00

32.00

34.00

$36.00

06/10/05

11/13/05

04/19/06

09/23/06

02/27/07

08/03/07

01/07/08

06/12/08

400

800

1,200

1,600

2,000

(Price)

(Volume in 000s)

Current Bid as of

April 4, 2008 =

$21.00

PROJECT LASSO

14.00

15.00

16.00

17.00

18.00

19.00

20.00

21.00

22.00

23.00

$24.00

12/31/07

01/23/08

02/15/08

03/10/08

04/02/08

04/26/08

05/19/08

06/12/08

400

800

1,200

1,600

2,000

(Price)

(Volume in 000s)

Current bid

announced April

4, 2008 at

$21.00 per

share, a 37.3%

premium to the

prior day stock

price

Initial bid

announced

January 28,

2008

Lasso Year-to-Date Stock Performance

Lasso Year-to-Date Stock Price / Volume Chart

Note: Factset as of June 12, 2008.

PROJECT LASSO

3,594.7

4,051.2

2,475.9

3,675.4

1,543.5

4,523.9

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

< $16.00

$16.00 -

$17.00

$17.00 -

$18.00

$18.00 -

$19.00

$19.00 -

$20.00

$20.00 -

$21.00

> $21.00

(Volume in 000s)

Shares Traded at Various Prices

Shares Traded at Various Prices Since January 28, 2008

Note: Factset

as of June 12, 2008.

III.

Valuation Analysis

Valuation Considerations

PROJECT LASSO

Key assumptions in the projections include:

Flat

same-store

sales

from

2008

2011

(with

flat

corresponding

restaurant-level

margins as well)

Three

new

Saltgrass

Steakhouse

units

per

year

from

2009

2011

•

New units require $3.0 million of capital expenditures and $250,000 of pre-

opening

•

New units generate $3.0 million of revenue and $450,000 of restaurant-level

profit per year (mid-year convention used)

Initial 400-rooms of the new 500-room hotel tower require $158.5 million of capital

expenditures and are completed in April 2010

Interest rate assumptions:

•

Based on the terms of the existing debt

•

No refinancing assumptions: $395.7 million Senior Notes remain at 9.5%

through 2011

–

However, in select analyses we have evaluated the impact of refinancing the

Senior Notes

Effective tax rate of 32.0%

Lasso Management Scenario Assumptions

Note:

Per Lasso management as of June 2008.

PROJECT LASSO

Lasso Management Scenario —

Projected Consolidated Income

Statement

Lasso Income Statement (Q1 2008 -

2011)

(US$ and shares in millions, except per share data)

Note:

Per Lasso management as of June 2008.

(a)

Projected interest expense assumes no refinancing of the 9.5% interest rate Senior Notes at the restaurant level until December 2014 maturity.

(b)

Taxes normalized at 32.0%.

(c)

Includes $11.0 million in mandatory cash that is physically held

on premises of the Golden Nugget properties per discussions with Lasso management.

LTM

Projected

As of 3/31/08

2008

2009

2010

2011

Total Revenues

1,183.1

1,213.4

1,273.5

1,330.0

1,354.0

Costs and Expenses:

Cost of Sales

261.6

271.4

282.2

286.4

289.5

Labor

385.2

393.2

414.0

437.1

445.8

Other Operating

298.9

309.8

324.7

337.2

331.0

Unit-level Profit

237.5

239.0

252.6

269.3

287.6

General and Administrative

51.4

46.9

47.5

Pre-opening

3.7

2.3

0.8

Stock Compensation Expense

4.4

4.0

3.6

EBITDA

178.0

185.8

200.8

217.4

235.8

Depreciation and Amortization

67.3

74.2

76.7

83.8

87.3

EBIT

110.7

111.6

124.1

133.6

148.5

Interest

(a)

79.5

80.0

75.0

79.1

76.4

Pretax Income

31.3

31.6

49.1

54.5

72.1

Taxes (As Reported)

2.8

Net Income from Continuing Operations

28.5

31.6

49.1

54.5

72.1

Taxes

(b)

10.7

10.1

15.7

17.4

23.1

Net Income from Continuing Operations

20.5

21.5

33.4

37.1

49.0

Other

21.7

(Income)/Loss from Discontinued Operations

9.2

1.8

Net Income

(10.4)

19.6

31.5

37.1

$ ��

49.0

EPS from Continuing Operations

1.26

1.31

2.04

2.26

2.99

Average Shares Outstanding

16.4

Growth:

Total Revenues

3.5%

5.0%

4.4%

1.8%

EBITDA

4.9%

8.0%

8.3%

8.4%

Net Income from Continuing Operations

(16.8%)

55.4%

11.0%

32.2%

EPS from Continuing Operations

(1.4%)

55.4%

11.0%

32.2%

Margins:

Unit-level Profit

20.1%

19.7%

19.8%

20.2%

21.2%

EBITDA

15.0%

15.3%

15.8%

16.3%

17.4%

Net Income from Continuing Operations

1.7%

1.8%

2.6%

2.8%

3.6%

Balance Sheet:

Cash

(c)

45.6

23.0

26.8

80.7

149.7

Total Debt

884.6

921.5

931.1

919.1

882.1

PROJECT LASSO

Projected

2008

2009

2010

2011

Total Revenues

948.7

983.5

988.0

997.0

Costs and Expenses:

Cost of Sales

256.9

266.4

267.6

270.0

Labor

283.8

294.2

295.5

298.2

Other Operating

230.2

240.4

241.6

244.1

Unit-level Profit

177.7

182.6

183.3

184.6

General and Administrative

(a)

43.9

44.5

Pre-opening

2.3

0.8

Stock Compensation Expense

4.0

3.6

EBITDA

127.6

133.8

134.4

135.8

Depreciation and Amortization

51.4

52.1

52.7

53.2

EBIT

76.2

81.6

81.8

82.6

Interest

(b)

44.2

41.3

38.0

34.3

Pretax Income

32.0

40.4

43.8

48.3

Taxes

(c)

10.2

12.9

14.0

15.5

Net Income from Continuing Operations

21.8

27.4

29.8

32.9

(Income)/Loss from Discontinued Operations

1.8

Net Income

19.9

25.6

29.8

32.9

Growth:

Total Revenues

4.7%

3.7%

0.5%

0.9%

EBITDA

9.9%

4.8%

0.5%

1.0%

Net Income from Continuing Operations

(11.5%)

26.0%

8.6%

10.2%

Margins:

Unit-level Profit

18.7%

18.6%

18.5%

EBITDA

13.5%

13.6%

Net Income from Continuing Operations

2.3%

2.8%

3.0%

3.3%

Balance Sheet:

Cash

3.0

6.8

60.7

128.8

Total Debt

462.9

410.2

400.0

Lasso Management Scenario —

Projected Restaurant Income

Statement

Projected Income Statement (2008 -

2011) —

Restaurant Division

(US$ in millions)

Note:

Per Lasso management as of June 2008.

(a)

$3.0 million of G&A is allocated to the Golden Nugget, updated from previous assumption in May 2008.

(b)

Projected interest expense assumes no refinancing of the 9.5% interest rate Senior Notes at the restaurant level until December 2014 maturity.

(c)

Taxes normalized at 32.0%.

PROJECT LASSO

Lasso Management Scenario —

Projected Gaming Division

Income Statement

Projected Income Statement (2008 -

2011) —

Gaming Division

(US$ in millions)

Note:

Per Lasso management as of June 2008.

(a)

$3.0 million of G&A is allocated to the Golden Nugget, updated from previous assumption in May 2008.

(b)

Taxes normalized at 32.0%.

(c)

Includes $11.0 million in mandatory cash that is physically held

on premises at the Golden Nugget properties.

Projected

2008

2009

2010

2011

Total Revenues

264.7

290.0

342.0

357.0

Costs and Expenses:

Cost of Sales

14.5

15.9

18.8

19.5

Labor

109.4

119.8

141.6

147.6

Other Operating

79.6

84.3

95.6

86.9

Unit-level Profit

61.2

70.0

86.0

103.0

General and Administrative

(a)

3.0

Pre-opening

Stock Compensation Expense

EBITDA

58.2

67.0

83.0

100.0

Depreciation and Amortization

22.8

24.5

31.2

34.1

EBIT

35.4

42.5

51.8

65.9

Interest

35.8

33.7

41.1

42.1

Pretax Income

(0.4)

8.7

10.7

23.7

Taxes

(b)

(0.1)

2.8

3.4

7.6

Net Income from Continuing Operations

(0.3)

5.9

7.3

16.1

(Income)/Loss from Discontinued Operations

Net Income

(0.3)

5.9

7.3

16.1

Growth:

Total Revenues

(0.5%)

9.6%

17.9%

4.4%

EBITDA

(4.5%)

15.1%

23.9%

20.5%

Net Income from Continuing Operations

22.4%

121.9%

Margins:

Unit-level Profit

23.1%

24.1%

25.1%

28.9%

EBITDA

22.0%

23.1%

24.3%

28.0%

Net Income from Continuing Operations

(0.1%)

2.0%

2.1%

4.5%

Balance Sheet:

Cash

(c)

20.0

20.8

Total Debt

458.6

520.9

519.1

482.1

PROJECT LASSO

Current Valuation Multiples

(a)

Stock price as of June 12, 2008. Basic shares from 10-Q for the period ended March 31, 2008.

(b)

Total options outstanding per Lasso management as of June 2008.

(c)

Financial statistics per 10-Q for the period ended March 31, 2008.

(d)

Excludes $11.0 million in mandatory cash that is physically held

on premises of the Golden Nugget properties per discussions with Lasso management.

(e)

Consensus EPS estimates per Reuters.

(f)

EPS estimates per Lasso management as of June 2008. Assumes no refinancing of the 9.5% interest rate Senior Notes at the restaurant level until December 2014 maturity.

The public markets are

currently valuing Lasso as

follows from the publicly

available information:

Lasso’s Current Valuation

(US$ and shares in millions, except per share data)

Current Valuation

Stock Price

(a)

$16.36

Shares Outstanding

(a)

16.1

CSEs

from Options Outstanding

(b)

0.2

Fully Diluted Shares

16.4

Fully Diluted Market Cap

$267.7

Total Debt

(c)

884.6

Total Cash

(c)(d)

34.6

Net Debt

$850.0

Current Enterprise Value

$1,117.7

Financial Statistics and Estimates

Valuation Multiples

LTM Revenue

(c)

$1,183.1

LTM EBITDA

(c)

$178.0

Enterprise Value/LTM EBITDA

6.3x

2008E EPS (Consensus)

(e)

$1.24

2008E P/E (Consensus)

(e)

13.2x

2008E EPS (Mgmt.)

(f)

1.31

2008E P/E (Mgmt.)

(f)

12.5x

2009E EPS (Consensus)

(e)

1.25

2009E P/E (Consensus)

(e)

13.1x

2009E EPS (Mgmt. without Refinancing)

(f)

2.04

2009E P/E (Mgmt. without Refinancing)

(f)

8.0x

PROJECT LASSO

Lasso Valuation and LTM EBITDA Adjustments

Where appropriate, Lasso’s

valuation and EBITDA have

been adjusted for non-

recurring or atypical

expenses per discussions

with Lasso management, as

follows:

Note:

Adjustments per discussions with Lasso management as of June 2008.

(a)

Includes estimated value of corporate real estate which do not currently have operations.

(b)

Includes purchase option value of land underlying an automobile dealership, owned by Lasso, which adjoins their corporate headquarters.

(c)

Includes estimates for numerous pending litigation settlements.

(d)

The May 12, 2008 presentation to the Special Committee assumed EBITDA of $2.8 million from discontinued operations that was included in Lasso’s consolidated EBITDA. Subsequent discussions

with Lasso management indicated that EBITDA from discontinued operations had not been included in corporate EBITDA and thus no adjustment was required.

(e)

Excludes $750,000 of pre-opening expense, which is the recurring pre-opening expense in the projection period. The $2.9 million of non-recurring pre-opening expense had not been previously

included as an adjustment in the May 12, 2008 presentation to the Special Committee.

(f)

Excludes $1.0 million in non-recurring EBITDA from the additional day of operations in 2008, leap day. The leap year adjustment increased from $0.8 million in the May 12, 2008 presentation to the

Special Committee to an updated estimate from management’s May 9, 2008 earnings conference call.

(g)

Non-recurring litigation includes $4.5 million of non-recurring legal and litigation costs related to the stock-based compensation review as well as an additional $1.0 million of non-recurring litigation

for excess legal costs incurred by the Company over the applicable periods. The May 12, 2008 presentation to the Special Committee had reflected $7.5 million of non-recurring litigation

adjustments. This figure had included certain costs related to the 2007 debt negotiations, which management subsequently indicated were being amortized below the EBITDA line.

Valuation Adjustments

(US$ in millions)

Item

Adjustments

Possible Excess Value (Status Quo):

Value of Excess Corporate Real Estate

(a)

30.0

Value of Dealership Land

(b)

1.8

Estimated Aggregate Pending Litigation Settlements

(c)

(20.0)

Total Valuation Adjustments

11.8

EBITDA Adjustments

(US$ in millions)

Item

Adjustments

Estimated LTM EBITDA Adjustments (Status Quo):

Discontinued Operations

(d)

Non-recurring Pre-opening

(e)

2.9

Leap Year Adjustments

(f)

(1.0)

Non-recurring Litigation

(g)

5.5

Total LTM EBITDA Adjustments

7.4

PROJECT LASSO

Valuation Adjustments for Potential Refinancing

In select analyses, where

appropriate, the impact of a

potential refinancing has

been considered

To evaluate the impact of a potential refinancing, we have assumed the following:

Refinancing occurs at year-end 2008

Refinance the $395.7 million, 9.5% interest rate Senior Notes

Assume $395.7 million of new debt at a 13.0% interest rate per discussions with

Lasso management and current market debt rates

Tax rate of 32.0%

Excludes impact of fees

Lasso

Income

Statement

Impact

13.0%

Interest

(US$

and

millions,

except

per

data)

Note:

Assumptions per discussions with Lasso management as of June 2008.

Projected

2009

EBIT

124.1

Interest (13.0% Interest on New Senior Notes)

88.2

Pre-Tax Income

35.8

Taxes

11.5

Net Income from Continuing Operations

24.4

EPS (Refinanced)

1.49

EPS (Current Capital Structure)

2.04

% EPS Change

(27.0%)

Average Shares Outstanding

16.4

PROJECT LASSO

Current Adjusted Valuation

(a)

Stock price as of June 12, 2008. Basic shares from 10-Q for the period ended March 31, 2008.

(b)

Total options outstanding per Lasso management as of June 2008.

(c)

Financial statistics per 10-Q for the period ended March 31, 2008.

(d)

Excludes $11.0 million in mandatory cash that is physically held

on premises of the Golden Nugget properties per discussions with Lasso management.

(e)

Valuation adjustments per discussions with Lasso management as of June 2008.

(f)

Includes LTM EBITDA adjustments per discussions with Lasso management as of June 2008.

(g)

Consensus EPS estimates per Reuters.

(h)

EPS estimates per Lasso management as of June 2008. Assumes no refinancing of the 9.5% interest rate Senior Notes at the restaurant level until December 2014 maturity.

(i)

Assumes pro forma interest from the refinancing of the $395.7 million, 9.5% interest rate restaurant debt on December 31, 2008 at 13.0% per discussions with Lasso management.

Including pro forma

valuation adjustments and

LTM EBITDA adjustments,

as well as pro forma

refinancing assumptions for

the restaurant-level debt,

Lasso is currently valued as

follows:

Lasso’s Current Valuation

(US$ and shares in millions, except per share data)

Current Valuation

Stock Price

(a)

$16.36

Shares Outstanding

(a)

16.1

CSEs

from Options Outstanding

(b)

0.2

Fully Diluted Shares

16.4

Fully Diluted Market Cap

$267.7

Total Debt

(c)

$884.6

Total Cash

34.6

Net Debt

$850.0

Valuation Adjustments

(e)

(11.8)

Adjusted Enterprise Value

$1,105.9

Adjusted Financial Statistics and Estimates

Valuation Multiples

LTM Revenue

(c)

$1,183.1

LTM Adjusted EBITDA

185.5

Enterprise Value/LTM EBITDA

6.0x

2008E EPS (Consensus)

(g)

$1.24

2008E P/E (Consensus)

(g)

13.2x

2008E EPS (Mgmt.)

(h)

1.31

2008E P/E (Mgmt.)

(h)

12.5x

2009E EPS (Consensus)

(g)

1.25

2009E P/E (Consensus)

(g)

13.1x

2009E EPS (Mgmt. with Refinancing)

(i)

1.49

2009E P/E (Mgmt. with Refinancing)

(i)

11.0x

2009E EPS (Mgmt. without Refinancing)

(h)

2.04

2009E P/E (Mgmt. without Refinancing)

(h)

8.0x

Valuation Summary

PROJECT LASSO

Premiums paid for 2007 -

2008 YTD transactions with equity values between $250.0 million

and

$1.0 billion

Considered “pre-affected”

price as of January 28, 2008 and current price as of June 12, 2008

Compared to 1-day, 1-week, 1-month and 3-month spot prices

Compared to 1-week, 1-month and 3-month average prices

Based on EBITDA, P/E and

trading multiples for

comparable companies

Premiums Paid Analysis

Valuation Approach

Given Lasso’s disparate

operating divisions, Cowen

primarily relied upon the

following valuation

methodologies:

Sum-of-the-Parts Analysis

Comparable Companies

Discounted Cash Flow

Comparable Acquisitions

Analyzed the restaurant and gaming operations by division using the following methodologies:

Comparable Companies

Comparable Acquisitions

DCFs

Management four-year

unlevered free cash flow

projections

Appropriate discount rate

applied based on WACC

Appropriate terminal value

multiples

Evaluated comparable

acquisition transactions

based on public

information

Primarily focused on

EBITDA multiples

PROJECT LASSO

$6.00

$9.00

$12.00

$15.00

$18.00

$21.00

$24.00

$27.00

$30.00

$33.00

$36.00

Restaurant and Gaming Division

LTM EBITDA

2009E P/E (Mgmt. without Refinancing)

2009E P/E (Mgmt. with Refinancing)

2008E P/E (Mgmt.)

LTM EBITDA

Stock Price

Current Bid = $21.00

Valuation Summary

Sum-of-the-Parts Analysis:

Comparable Companies Analysis

Comparable Acquisitions Analysis

Discounted Cash Flow Analysis

PROJECT LASSO

Valuation Summary (Cont.)

(a)

Assumes net debt of $838.2 million, which includes valuation adjustments per discussion with Lasso management and excludes $11.0

million in mandatory cash that is physically held on premises of

the Golden Nugget properties; allocated based on previous schedules.

(b)

Basic shares from 10-Q for the period ended March 31, 2008. Options outstanding per Lasso management as of June 2008.

(c)

Includes LTM EBITDA adjustments per discussion with Lasso management as of June 2008.

(d)

EPS estimates per Lasso management as of June 2008. Assumes no refinancing of the 9.5% interest rate Senior Notes at the restaurant level until December 2014 maturity.

(e)

Assumes pro forma interest from the refinancing of the $395.7 million, 9.5% interest rate restaurant debt on December 31, 2008 at 13.0% per discussions with Lasso management.

Valuation Summary

(US$ in millions, except per share data)

Lasso

Multiple

Implied

Methodology

Figure

Range

Enterprise Value

Equity Value

(a)

Stock Price

(b)

Sum-of-the-Parts Valuation Analysis

Comparable Companies Analysis

LTM EBITDA

(c)

Restaurant Division

$126.9

5.0x

6.0x

$634.4

$761.2

$166.6

$293.5

$10.21

$17.72

Gaming Division

58.6

7.5x

8.5x

439.4

498.0

58.9

117.5

3.61

7.09

Total

$185.5

5.8x

6.8x

$1,073.8

$1,259.2

$225.5

$411.0

$13.82

$24.82

2008E P/E (Mgmt.)

(d)

Restaurant Division

$21.8

13.0x

17.0x

$750.8

$837.9

$283.1

$370.2

$17.29

$22.43

Gaming Division

(0.3)

13.0x

17.0x

376.8

375.7

(3.7)-

(4.9)

(0.23)

(0.29)

Total

$21.5

13.0x

17.0x

$1,127.6

$1,213.6

$279.4

$365.3

$17.06

$22.13

2009E P/E (Mgmt. with Refinancing)

(e)

Restaurant Division

$19.8

11.0x

15.0x

$685.5

$764.6

$217.7

$296.9

$13.30

$18.00

Gaming Division

4.6

11.0x

13.0x

431.0

440.1

50.4

59.6

3.08

3.61

Total

$24.4

11.0x

14.6x

$1,116.4

$1,204.8

$268.1

$356.5

$16.39

$21.61

2009E P/E (Mgmt. without Refinancing)

(d)

Restaurant Division

$27.4

11.0x

15.0x

$769.6

$879.3

$301.8

$411.6

$18.29

$24.71

Gaming Division

5.9

11.0x

13.0x

445.9

457.8

65.4

77.3

3.96

4.64

Total

$33.4

11.0x

14.6x

$1,215.5

$1,337.1

$367.2

$488.9

$22.25

$29.35

Comparable Acquisitions Analysis

LTM EBITDA

(c)

Restaurant Division

$126.9

5.5x

6.5x

$697.8

$824.7

$230.1

$356.9

$14.04

$21.46

Gaming Division

58.6

7.5x

8.5x

439.4

498.0

58.9

117.5

3.59

7.06

Total

$185.5

6.1x

7.1x

$1,137.2

$1,322.7

$288.9

$474.4

$17.64

$28.52

Discounted Cash Flow Analysis

LTM EBITDA

(c)

Restaurant

Division

(Exit

Multiples

5.3x

6.3x,

Midpoint

Discount

Rate

Range)

$126.9

5.2x

5.9x

$661.0

$748.2

$206.6

$293.7

$12.67

$17.92

Gaming

Division

(Exit

Multiples

7.5x

8.5x,

Midpoint

Discount

Rate

Range)

58.6

8.5x

9.6x

498.8

565.0

83.1

149.3

5.15

9.22

Total

$185.5

6.3x

7.1x

$1,159.8

$1,313.2

$289.7

$443.1

$17.82

$27.14

PROJECT LASSO

Comparable Restaurant Analysis —

Market Statistics

Market Analysis of Restaurant Companies

(US$ in millions, except per share data)

(a)

Market Value plus net debt plus minority interest.

(b)

EPS estimates and Secular Growth Rates (SGR) per Wall Street Research.

Price

52 Week

Enterprise

Enterprise Value

(a)

/ LTM

PE Ratios

(b)

5-Year

PE % of SGR

(b)

Company Name

6/12/2008

Low

High

Mkt

Cap

Value

(a)

Rev

EBITDA

2008E

2009E

SGR

(b)

2008E

2009E

Benihana

$7.88

$7.50

$25.11

$120.2

$155.4

0.5x

4.3x

10.2x

8.3x

17.0%

60.2%

48.8%

Brinker

19.73

14.65

31.55

1,997.7

2,820.7

0.7x

5.4x

11.7x

10.2x

15.0%

78.1%

67.9%

California Pizza Kitchen

13.24

9.32

23.00

335.4

393.0

0.6x

5.5x

21.0x

16.6x

12.0%

175.1%

137.9%

CEC Entertainment

31.80

19.81

39.47

791.5

1,098.4

1.4x

5.9x

13.4x

12.0x

12.0%

111.8%

99.8%

McCormick & Schmick's

9.00

30.98

133.4

153.4

0.4x

6.3x

13.8x

11.3x

15.0%

92.3%

75.0%

O'Charley's

10.89

9.88

22.89

238.8

376.6

0.4x

4.8x

22.7x

14.0%

162.1%

Ruby Tuesday

7.21

5.70

27.05

372.8

978.0

0.7x

5.7x

15.2x

13.2x

15.0%

101.2%

88.0%

Min

0.4x

4.3x

10.2x

8.3x

12.0%

60.2%

48.8%

Mean

0.7x

5.4x

14.2x

13.4x

14.3%

103.1%

97.1%

Median

0.6x

5.5x

13.6x

12.0x

15.0%

96.8%

88.0%

Max

1.4x

6.3x

21.0x

22.7x

17.0%

175.1%

162.1%

PROJECT LASSO

Price

52 Week

Enterprise

Enterprise Value

(a)

/ LTM

PE Ratios

(b)

5-Year

PE % of SGR

(b)

Company Name

6/12/2008

Low

High

Mkt Cap

Value

(a)

Rev

EBITDA

2008E

2009E

SGR

(b)

2008E

2009E

Ameristar Casinos

$18.13

$15.29

$38.00

$1,037.3

$2,578.2

2.2x

9.3x

14.3x

12.4x

10.0%

142.8%

124.2%

Boyd Gaming Corp.

15.72

14.75

54.22

1,379.9

3,584.2

1.8x

7.1x

11.9x

11.0x

17.0%

70.1%

64.7%

Isle of Capri Casinos

6.93

5.93

25.79

244.0

1,696.6

1.6x

9.5x

27.7x

13.0%

213.2%

Monarch Casino and Resort

12.52

12.30

31.41

221.8

206.0

1.3x

5.3x

16.5x

12.3x

15.0%

109.8%

81.8%

Pinnacle Entertainment

12.09

11.92

31.34

724.8

1,463.1

1.5x

28.1x

15.0%

187.4%

Riviera Holdings

14.50

13.98

39.12

182.6

383.1

1.9x

9.2x

Trump Entertainment Resorts

2.58

2.29

16.10

106.0

1,687.3

1.7x

12.8x

15.0%

Min

1.3x

5.3x

11.9x

11.0x

10.0%

70.1%

64.7%

Mean

1.7x

8.9x

14.2x

18.3x

14.2%

107.5%

134.3%

Median

1.7x

9.3x

14.3x

12.4x

15.0%

109.8%

124.2%

Max

2.2x

12.8x

16.5x

28.1x

17.0%

142.8%

213.2%

Market Analysis of Select Casino and Gaming Companies

(US$ in millions, except per share data)

Comparable Casino and Gaming Analysis —

Market Statistics

(a)

Market Value plus net debt plus minority interest.

(b)

EPS estimates and Secular Growth Rates (SGR) per Wall Street Research.

PROJECT LASSO

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

8.0x

9.0x

10.0x

11.0x

12.0x

13.0x

6/08

10/06

2/05

6/03

10/01

2/00

6/98

Lasso

Comparable Restaurants

Comparable Casino and Gaming

(Multiple)

10-year Casino Average (8.3x)

10-year Restaurant Average (8.1x)

10-year Lasso Average (6.5x)

Historical EBITDA Multiples

Analysis of 10-Year Historical LTM EBITDA Trading Multiples

Lasso has traded at an

average of 6.5x EBITDA

over the past 10 years

Note: Factset as of June 12, 2008.

Comparable Restaurants include: Benihana, Brinker International,

California Pizza Kitchen, CEC Entertainment, McCormick & Schmick’s, O’Charley’s and Ruby Tuesday.

Comparable Casino and Gaming includes: Ameristar Casinos, Boyd Gaming, Isle of Capri Casinos, Monarch Casino & Resort, Pinnacle Entertainment, Riviera Holdings and Trump Entertainment.

PROJECT LASSO

Enterprise Value/

Date

Ent.

LTM

Announced

Closed

Target

Acquirer

Val.

(a)

Revenue

EBITDA

11/6/2007

2/20/2008

Cameron Mitchell Restaurants

Ruth's Chris Steak House

92.0

0.9x

7.0x

8/23/2007

Yard House

TSG Consumer Partners

190.0

1.7x

9.5x

8/16/2007

10/1/2007

RARE Hospitality

Darden Restaurants

1,368.3

1.3x

11.4x

7/16/2007

11/29/2007

Applebee's

IHOP

2,071.0

1.5x

9.2x

7/5/2007

10/22/2007

Champps Entertainment

F&H Acquisition Corp. (Fox & Hound)

70.9

0.3x

5.8x

6/18/2007

9/4/2007

Friendly Ice Cream Corp.

Freeze Operations (Sun Capital)

337.2

0.6x

8.1x

11/6/2006

6/14/2007

OSI Restaurant Partners (Outback)

Bain Capital, Catterton, Company Founders

3,432.2

0.9x

9.3x

5/7/2007

8/20/2007

Smith & Wollensky

Patina Restaurant Group

97.4

0.8x

13.2x

12/7/2006

3/5/2007

Hard Rock Café (sub of Rank Group PLC)

Seminole Tribe of Florida

965.0

1.9x

9.9x

10/30/2006

12/6/2006

Logan's Roadhouse

Bruckman, Rosser, Sherrill & Co.

486.0

1.2x

10.4x

10/10/2006

10/16/2006

Joe's Crab Shack

J.H. Whitney Capital Partners

192.0

0.6x

6.4x

8/18/2006

1/12/2007

Lone Star Steakhouse

Lone Star Funds

556.3

0.8x

12.3x

8/8/2006

8/10/2006

Real Mex Restaurants

Sun Capital

350.0

0.6x

6.2x

5/22/2006

6/29/2006

Main Street Restaurant Group

The Briad Group

150.3

0.6x

8.2x

12/9/2005

3/8/2006

Dave & Buster's (DAB)

Wellspring Capital Management

383.0

0.8x

6.1x

10/4/2005

2/27/2006

Fox & Hound Restaurant Group (FOXX)

Newcastle Partners and Steel Partners

179.6

1.1x

8.2x

4/29/2005

9/22/2005

Worldwide Restaurant Concepts (SZ)

Pacific Equity Partners

220.2

0.6x

8.8x

1/20/2005

3/7/2005

Charlie Brown's

Trimaran Partners

140.0

0.9x

7.0x

1/11/2005

2/23/2005

Uno Restaurant Holdings

Centre Partners

191.6

0.6x

5.6x

6/16/2004

4/13/2005

Quality Dining Inc. (QDIN)

Investor Group

129.6

0.6x

5.4x

9/30/2003

3/10/2004

Garden Fresh (LTUS)

Centre Partners / Fairmont Capital

135.8

0.6x

5.4x

5/8/2003

6/30/2003

Vicorp Restaurants

Wind Point Partners

225.5

4.9x

10/29/2002

1/28/2003

Ninety Nine Restaurants & Pub

O'Charley's (CHUX)

160.0

0.8x

6.2x

9/11/2002

10/4/2002

Saltgrass Steak House

Landry's Restaurants (LNY)

75.0

0.8x

5.8x

6/9/2001

8/22/2001

McCormick & Schmick's (Division of AVDO)

BRS & Castle Harlan

123.5

0.8x

6.8x

2/15/2001

5/14/2001

Vicorp Restaurants (VRES)

Goldner Hawn Johnson & Morrison / BancBoston / Fairmont

171.4

0.5x

4.1x

11/16/2000

7/17/2001

Il Fornaio (ILFO)

Bruckmann, Rosser, Sherrill & Co

74.5

0.6x

6.0x

10/25/2000

7/31/2001

Uno Restaurant Corp. (UNO)

Aaron Spencer (Chairman) and Other Management

166.7

0.7x

5.4x

9/26/2000

12/1/2000

Rainforest Café (RAIN)

Landry's Restaurants (LNY)

59.1

0.2x

2.6x

6/5/2000

10/2/2000

Buffets (BOCB)

Caxton-Iseman

566.1

0.6x

4.9x

Mean (All)

0.8x

7.3x

Median (All)

0.8x

6.6x

Mean (2005 - Current)

0.9x

8.6x

Median (2005 - Current)

0.8x

8.2x

Mean (2000 - 2004)

0.6x

5.2x

Median (2000 - 2004)

0.6x

5.4x

Comparable Restaurant M&A Transactions

(a)

Represents total consideration including the assumption of liabilities and residual cash (enterprise value) when available.

Comparable Restaurant M&A Transactions

(US$ in millions)

PROJECT LASSO

Enterprise Value/

Date

Ent.

LTM

Announced

Closed

Target

Acquirer

Val.

(a)

Revenue

EBITDA

5/29/2008

TBD

Trump Marina Hotel Casino

Coastal Marina

316.0

1.4x

12.0x

6/15/2007

TBD

Penn National Gaming

Fortress Investment Group and Centerbridge Partners

8,717.1

3.8x

14.3x

4/23/2007

2/20/2008

Icahn Enterprises (American Casino, Stratosphere)

Whitehall Street Fund (Goldman)

1,200.0

3.1x

13.9x

4/3/2007

11/6/2007

Gateway Casinos Income Fund

New World Gaming Partners

854.4

18.8x

12/4/2006

11/7/2007

Station Casinos

Fertitta Colony Partners

8,675.9

19.3x

12/19/2006

1/28/2008

Harrah's Entertainment

Apollo Management and TPG

27,753.3

2.9x

11.9x

9/11/2006

Stanley Leisure

Genting International

1,265.9

3.0x

16.4x

8/31/2006

11/2/2006

London Clubs International

Dagger Holdings (Harrah's)

592.0

2.5x

19.1x

5/17/2006

1/3/2007

Sands Regent

Herbst Gaming

138.1

1.6x

9.2x

4/13/2006

1/3/2007

Aztar Corp (Tropicana Casino)

Wimar Tahoe Corp. (Blackstone)

2,735.4

3.0x

12.8x

4/10/2006

2/1/2007

Stockman's Casino

Full House Resorts

25.5

2.3x

10.0x

2/14/2006

7/31/2006

Isle of Capri Casinos (Two Casinos)

Legends Gaming

240.0

1.5x

6.8x

6/20/2005

10/25/2005

Argosy Casino (Baton Rouge)

Columbia Sussex Corp.

150.0

1.7x

7.4x

2/4/2005

9/27/2005

Golden Nugget Casino

Landry's Restaurants

316.1

1.6x

13.4x

11/3/2004

10/3/2005

Argosy Gaming

Penn National Gaming

2,149.8

2.1x

8.1x

7/15/2004

6/13/2005

Caesars Entertainment

Harrah's Entertainment

9,356.5

2.0x

8.6x

6/4/2004

4/26/2005

Mandalay Resort Group

MGM Mirage

7,659.0

2.9x

10.3x

2/6/2004

7/1/2004

Coast Casinos

Boyd Gaming

1,282.2

2.2x

8.9x

9/10/2003

7/1/2004

Horseshoe Gaming Holding Corp.

Harrah's Entertainment

1,450.0

1.8x

8.3x

8/7/2002

3/3/2003

Hollywood Casino Corp.

Penn National Gaming

782.1

1.7x

8.5x

9/19/2000

12/19/2002

Stratosphere Corp.

Icahn Associates Corp.

77.4

0.6x

6.4x

4/24/2001

8/1/2001

Harveys Casino Resorts

Harrah's Entertainment

625.4

1.4x

6.0x

3/6/2000

5/31/2000

Mirage Resorts

MGM Grand

6,559.7

2.8x

14.3x

Mean

2.2x

11.5x

Median

2.1x

10.3x

Mean (Sub-$1.0 Billion Enterprise Value)

1.6x

10.7x

Median (Sub-$1.0 Billion Enterprise Value)

1.6x

9.2x

Mean (2005 - Current)

2.4x

13.2x

Median (2005 - Current)

2.4x

13.1x

Mean (2000 - 2004)

2.0x

8.8x

Median (2000 - 2004)

2.0x

8.5x

Comparable Casino and Gaming M&A Transactions

(a)

Represents total consideration including the assumption of liabilities and residual cash (enterprise value) when available.

Comparable Casino and Gaming M&A Transactions

(US$ in millions)

PROJECT LASSO

Discounted Cash Flow Overview —

Restaurant Division

There are two key components to the restaurant division DCF

The present value of the stream of unlevered cash flows in the projected period

The terminal value based on EBITDA in the out-year of the projected period

Projections used for the DCF model were those provided by Lasso management

Using the CAPM formula and a set of comparable restaurant companies/Lasso’s

projected beta according to Barra’s Betas, we calculated Lasso’s restaurant division

cost of capital as approximately 13.5%

Pre-tax

cost

debt

12.0%

(a)

Risk-free

rate

4.2%

(b)

Re-levered comparable company beta of 1.88

Equity

risk

premium

7.1%

(c)

Size

premium

4.4%

(c)

presented

the

DCF

with

discount

rates

ranging

from

12.5%

14.5%

presented

the

DCF

with

exit

multiples

5.25x

6.25x

EBITDA

A discounted cash flow

(DCF) model for the

restaurant division was

utilized to calculate its

intrinsic value to Lasso

(a)

Represents a blended interest rate between Lasso’s restaurant credit facility and the estimated refinancing of the Senior Notes at 13.0%.

(b)

U.S. 10-year Treasury Yield as of June 12, 2008.

(c)

Per Ibbotson Associates data.

PROJECT LASSO

Discounted Cash Flow Analysis —

Restaurant Division

(US$ in millions, except per share data)

Discounted Cash Flow Analysis —

Restaurant Division

Note: Valuation as of June 30, 2008.

(a)

EBITDA includes both recurring and non-recurring pre-opening as an expense.

(b)

Reflects taxes for a non-levered firm with a tax rate of 32.0% per Lasso projection model.

(c)

EBIAT reflects earnings before interest and after taxes.

(d)

Valuation adjustments per discussions with Lasso management as of June 2008.

(e)

Per discussions with Lasso management. Reflects projected restaurant-level cash and debt as of June 30, 2008.

(f)

LTM EBITDA as of March 31, 2008. Adjustments per discussions with Lasso management as of June 2008.

Projected

Fiscal Year Ending December,

2H 2008

2009

2010

2011

Revenue

472.5

983.5

988.0

997.0

EBITDA

(a)

60.9

133.8

134.4

135.8

EBIT

34.9

81.6

81.8

82.6

Less: Taxes

(b)

11.2

26.1

26.2

26.4

EBIAT

(c)

23.7

55.5

55.6

56.2

Plus: Depreciation and Amortization

26.0

52.1

52.7

53.2

Plus: Stock Compensation Expense

1.9

3.6

Less: Capital Expenditures

(18.2)

(22.0)

Decrease/(Increase) in Working Capital

(18.0)

3.8

0.9

1.2

Unlevered Free Cash Flow

15.5

92.9

90.7

92.1

Discount Rate

12.5%

13.5%

14.5%

Terminal EBITDA Multiple

5.3x

5.8x

6.3x

5.3x

5.8x

6.3x

5.3x

5.8x

6.3x

2011E EBITDA

$135.8

Terminal Value

712.9

780.7

848.6

712.9

780.7

848.6

712.9

780.7

848.6

PV of Terminal Value

472.0

517.0

561.9

457.6

501.2

544.8

443.8

486.1

528.3

PV of Near-term Free Cash Flows

208.5

203.4

198.5

Implied Enterprise Value

$680.5

$725.4

$770.4

$661.0

$704.6

$748.2

$642.3

$684.5

$726.8

Plus: Valuation Adjustments

(d)

11.8

Plus: Cash & Equivalents

(e)

3.0

Less: Total Debt

(e)

469.2

Implied Equity Value

$226.1

$271.0

$316.0

$206.6

$250.2

$293.7

$187.8

$230.1

$272.4

Implied Equity Value per Share

$13.85

$16.56

$19.23

$12.67

$15.30

$17.92

$11.54

$14.09

$16.64

Implied Enterprise Value as a

5.4x

5.7x

6.1x

5.2x

5.6x

5.9x

5.1x

5.4x

5.7x

Multiple of LTM Adjusted EBITDA

(f)

PROJECT LASSO

Discounted Cash Flow Overview —

Gaming Division

There are two key components to the gaming division DCF

The present value of the stream of unlevered cash flows in the projected period

The terminal value based on EBITDA in the out-year of the projected period

Projections used for the DCF model were those provided by Lasso management

Using the CAPM formula and a set of comparable casino and gaming

companies/Lasso’s

projected beta according to Barra’s Betas, we calculated Lasso’s gaming division cost of

capital as approximately 12.5%

Pre-tax cost of debt of 9.0%

Risk-free rate of 4.2%

(a)

Re-levered comparable company beta of 1.96

Equity risk premium of 7.1%

(b)

Size premium of 9.7%

(b)

We presented the DCF with discount rates ranging from 11.5% -

13.5%

We presented the DCF with exit multiples of 7.5x –

8.5x EBITDA

A discounted cash flow

(DCF) model for the gaming

division was utilized to

calculate its intrinsic value

to Lasso

(a)

U.S. 10-year Treasury Yield as of June 12, 2008.

(b)

Per Ibbotson Associates data.

PROJECT LASSO

Discounted Cash Flow Analysis —

Gaming Division

(US$ in millions, except per share data)

Discounted Cash Flow Analysis —

Gaming Division

Note: Valuation as of June 30, 2008.

(a)

Reflects taxes for a non-levered firm with a tax rate of 32.0% per Lasso projection model.

(b)

EBIAT reflects earnings before interest and after taxes.

(c)

Excludes $11.0 million in mandatory cash that is physically held

on premises of the Golden Nugget properties per discussions with Lasso management.

(d)

Per discussions with Lasso management as of June 2008. Reflects

gaming-level cash and debt as of June 30, 2008.

(e)

LTM EBITDA as of March 31, 2008 adjustments per discussions with

Lasso management as of June 2008.

Projected

Fiscal Year Ending December,

2H 2008

2009

2010

2011

Revenue

128.7

290.0

342.0

357.0

EBITDA

24.9

67.0

83.0

100.0

EBIT

13.2

42.5

51.8

65.9

Less: Taxes

(a)

4.2

13.6

16.6

21.1

EBIAT

(b)

9.0

28.9

35.3

44.8

Plus: Depreciation and Amortization

11.7

24.5

31.2

34.1

Plus: Stock Compensation Expense

Less: Capital Expenditures

(48.4)

(99.4)

(44.7)

(12.0)

Decrease/(Increase) in Working Capital

4.9

2.8

4.2

(5.5)

Unlevered Free Cash Flow

(22.8)

(43.2)

25.9

61.4

Discount Rate

11.5%

12.5%

13.5%

Terminal EBITDA Multiple

7.5x

8.0x

8.5x

7.5x

8.0x

8.5x

7.5x

8.0x

8.5x

2011E EBITDA

$100.0

Terminal Value

750.0

800.0

850.0

750.0

800.0

850.0

750.0

800.0

850.0

PV of Terminal Value

512.4

546.5

580.7

496.6

529.7

562.8

481.5

513.6

545.7

PV of Near-term Free Cash Flows

3.2

2.1

1.1

Implied Enterprise Value

$515.6

$549.8

$583.9

$498.8

$531.9

$565.0

$482.6

$514.7

$546.8

Plus: Cash & Equivalents

9.0

Less: Total Debt

(d)

424.7

Implied Equity Value

$100.0

$134.1

$168.3

$83.1

$116.2

$149.3

$66.9

$99.0

$131.1

Implied Equity Value per Share

$6.19

$8.30

$10.36

$5.15

$7.20

$9.22

$4.15

$6.13

$8.11

Implied Enterprise Value as a

8.8x

9.4x

10.0x

8.5x

9.1x

9.6x

8.2x

8.8x

9.3x

Multiple of LTM EBITDA

(e)

PROJECT LASSO

Selected Premiums Analysis

Note:

Per SDC and Factset as of June 12, 2008. Includes all completed

M&A transactions of public companies with equity values between

$250.0 million and $1.0 billion.

(a)

Includes all transactions in which the management of the target company is taking an equity interest in the target company as part of the acquisition, as defined by SDC.

(b)

Reflects pre-affected price prior to initial offer.

Selected Premiums Analysis —

Completed M&A Transactions

Spot Prices

Premiums Prior to Closing Price (Quartile)

1-Day

1-Week

1-Month

3-Months

First

Third

First

Third

First

Third

First

Third

All Transactions from 2007 -

2008 YTD with $250.0 mm -

$1.0 bn

Equity Values

11.1%

35.9%

14.0%

39.7%

15.2%

41.1%

13.2%

42.7%

Transactions from 2007 -

2008 YTD with $250.0 mm -

$1.0 bn

Equity Values (Cash)

11.6%

39.2%

13.2%

44.3%

15.7%

41.1%

14.5%

45.2%

Transactions from 998 –

2008 YTD with $250.0 mm -

$1.0 bn

Equity Values (Going Private)

(a)

9.9%

31.5%

11.6%

32.7%

14.4%

33.3%

13.7%

46.9%

Implied

Premium

$21.00

Current

Bid

Spot

Prices

Prior

June

12,

2008:

1-Day ($16.00)

31.3%

1-Week ($16.78)

25.1%

1-Month ($15.52)

35.3%

3-Months ($17.98)

16.8%

Implied

Premium

$21.00

Current

Bid

Spot

Prices

Prior

January

28,

2008

(b)

1-Day ($16.67)

26.0%

1-Week ($14.79)

42.0%

1-Month ($19.87)

5.7%

3-Months ($27.75)

(24.3%)

Average Prices

Premiums Prior to Average Price (Quartile)

1-Week

1-Month

3-Months

First

Third

First

Third

First

Third

All Transactions from 2007 -

2008 YTD with $250.0 mm -

$1.0 bn

Equity Values

11.2%

32.7%

13.7%

34.6%

15.6%

34.5%

Transactions from 2007 -

2008 YTD with $250.0 mm -

$1.0 bn

Equity Values (Cash)

10.4%

34.1%

13.6%

36.5%

15.7%

36.3%

Transactions from 1998 –

2008 YTD with $250.0 mm -

$1.0 bn

Equity Values (Going Private)

(a)

10.7%

33.5%

16.9%

31.0%

16.3%

33.3%

Implied

Premium

$21.00

Current

Bid

Average

Prices

Prior

June

12,

2008:

1-Week ($16.54)

27.0%

1-Month ($16.11)

30.3%

3-Months ($16.39)

28.1%

Implied

Premium

$21.00

Current

Bid

Average

Prices

Prior

January

28,

2008

(b)

1-Week ($15.94)

31.8%

1-Month ($16.67)

26.0%

3-Months ($21.39)

(1.8%)

IV.

Appendix

Weighted Average Cost of

Capital

PROJECT LASSO

Weighted Average Cost of Capital Analysis —

Restaurant Division

(a)

U.S. 10-Year Treasury Yield as of June 12, 2008.

(b)

From Ibbotson Associates 2007 Risk Premia Over Time Report.

(c)

Predicted Betas from Barra's Betas as of May 2008.

(d)

Book value of debt used to approximate market value; assumed to be zero for calculation purposes if company is in a net cash position.

(e)

Equity market value as of June 12, 2008.

(f)

Unlevered Beta = (Levered beta / (1+(1-

tax rate) x (Net Debt to Equity Ratio))).

(g)

= r

+ ß

* (r

) + SP.

(h)

K = (W

* K

) + (W

* K

). K

equals after tax cost of debt.

Key Assumptions

Lasso

Risk Free Rate

(a)

4.2%

Net Debt to Total Cap. (W

)

29.41%

60.00%

Equity Risk Premium

(b)

7.1%

Equity to Total Cap. (W

)

70.59%

40.00%

Marginal Corp. Tax Rate

40.0%

Pre-Tax Cost of Debt

12.0%

Lasso Marginal Corp. Tax Rate

32.0%

Size Premium

(b)

4.4%

Target Beta Calculations

(US$ in millions)

Levered

Net

Net Debt for

Equity

Net Debt

Unlevered

Net Debt to

Comparable Company

Equity Beta

(c)

Debt

(d)

Beta Calc

Value

(e)

to Equity

Beta

(f)

Total Cap.

Restaurants:

Benihana

1.08

$35.2

$120.2

29.2%

0.92

22.6%

Brinker

1.28

823.0

1,997.7

41.2%

1.03

29.2%

California Pizza Kitchen

1.03

57.6

335.4

17.2%

0.94

14.6%

CEC Entertainment

1.16

306.9

791.5

38.8%

0.94

27.9%

McCormick & Schmick's

1.33

20.0

133.4

15.0%

1.22

13.0%

O'Charley's

0.99

137.8

238.8

57.7%

0.73

36.6%

Ruby Tuesday

1.49

605.2

372.8

162.3%

0.75

61.9%

Mean

1.19

51.6%

0.93

29.4%

Relevered

Beta

1.88

Cost of Equity Capital (K

)

(g)

21.94%

After Tax Cost of Debt (K

)

8.16%

WACC (K)

(h)

13.67%

PROJECT LASSO

Weighted Average Cost of Capital Analysis —

Gaming Division

(a)

U.S. 10-Year Treasury Yield as of June 12, 2008.

(b)

From Ibbotson Associates 2007 Risk Premia Over Time Report.

(c)

Predicted Betas from Barra's Betas as of May 2008.

(d)

Book value of debt used to approximate market value; assumed to be zero for calculation purposes if company is in a net cash position.

(e)

Equity market value as of June 12, 2008.

(f)

Unlevered Beta = (Levered beta / (1+(1-

tax rate) x (Net Debt to Equity Ratio))).

(g)

= r

+ ß

* (r

) + SP.

(h)

K = (W

* K

) + (W

* K

). K

equals after tax cost of debt.

Key Assumptions

Lasso

Risk Free Rate

(a)

4.2%

Net Debt to Total Cap. (W

)

57.60%

70.00%

Equity Risk Premium

(b)

7.1%

Equity to Total Cap. (W

)

42.40%

30.00%

Marginal Corp. Tax Rate

40.0%

Pre-Tax Cost of Debt

9.0%

Lasso Marginal Corp. Tax Rate

32.0%

Size Premium

(b)

9.7%

Target Beta Calculations

(US$ in millions)

Levered

Net

Net Debt for

Equity

Net Debt

Unlevered

Net Debt to

Comparable Company

Equity Beta

(c)

Debt

(d)

Beta Calc

Value

(e)

to Equity

Beta

(f)

Total Cap.

Casino and Gaming:

Ameristar Casinos

1.37

$1,540.9

$1,037.3

148.5%

0.73

59.8%

Boyd Gaming Corp.

1.74

2,204.2

1,379.9

159.7%

0.89

61.5%

Isle of Capri Casinos

1.49

1,452.5

244.0

595.3%

0.33

85.6%

Monarch Casino and Resort

1.16

(15.7)

0.0

221.8

0.0%

1.16

0.0%

Riviera Holdings

1.37

738.2

724.8

101.8%

0.85

50.5%

Pinnacle Entertainment

1.95

200.5

182.6

109.8%

1.17

52.3%

Trump Entertainment Resorts

1.78

1,522.1

106.0

1435.7%

0.19

93.5%

Mean

1.55

364.4%

0.76

57.6%

Relevered

Beta

1.96

Cost of Equity Capital (K

)

(g)

27.81%

After Tax Cost of Debt (K

)

6.12%

WACC (K)

(h)

12.63%

Landrys Restaurants (LNY) Inactive SC 13E3Going private transaction