Introduction

Dear Current and Prospective Boyd Gaming Suppliers:

It has been four years since we launched the Boyd Electronic Sourcing Portal "BeST" to the public. Since that time we have continued to build and enhance the system which now includes a new and improved registration tool, incorporation of an electronic bidding feature as well as posting Company credit references. BeST is intended to provide transparency about Boyd Gaming as well as a valuable "on-boarding" tool to facilitate the inclusion of capable new suppliers into the procurement process.

We are all impacted by the current economic conditions and this has caused both Boyd Gaming and its suppliers to be innovative in looking at ways to create additional value by taking cost out of the supply chain. Cost reductions are not only on the products and services we buy, they are also related to the processes surrounding our "procurement to pay" function. We are continuing to look at a variety of processes including ordering frequency, payment terms, inventory levels, accuracy of our item descriptions, visibility of supplier costs, opportunities for consolidation and branding of B-Connected into the products and service we procure.

In 2010, positive progress is continuing to be made related to our supplier diversity initiatives. Boyd Gaming is as committed as ever to working with a diverse supply base by providing opportunities for small and diverse businesses. Boyd Gaming is one of the few gaming companies that provide reporting of our supplier diversity spend consistent with industry guidance provided through the American Gaming Association. Boyd reports only those suppliers that have provided third-party verification, usually in the form of a certificate by organizations such as the National Minority Supplier Development Council; www.nmsdc.org or agencies which can be found at www.americangaming.org/diversity/vendors/certifications.cfm.

We continue to provide in the BeST portal under Supplier Diversity, "Useful Links" to other certifying organizations. Proof of status as a Minority or Women owned business enterprise "M/WBE" by third parties is critical to ensure the integrity of our reporting by having true and accurate designations. M/WBE suppliers can directly upload certificates into their profile and are encouraged to keep certificates current as they expire. In 2010 we will be putting additional focus to work with M/WBE suppliers to attain third party certification. If you have any questions regarding the certification process, please refer to the FAQ section or send a note to diversitymatters@boydgaming.com.

For those of you that may be interested in doing business with Boyd Gaming, we would encourage you learn about the Company and where we do business. Through the BeST portal and at boydgaming.com, there is information that can perhaps help you and help us define specific areas of opportunity. The next step is to complete the Supplier Application and it important to be accurate in completing the required information. Completing the supplier application does not guarantee contracts nor does it commit Boyd Gaming to do business with your company. Any inaccurate, misleading or false information may disqualify you from any future bid opportunities.

Again, thank you for your interest in Boyd Gaming.

Rick Darnold Vice President, Strategic Sourcing