Acres Gaming Holds First Investor Conference Call; Provides Insight for Third and Fourth Quarter.

Business Editors

LAS VEGAS--(BUSINESS WIRE)--March 2, 2001

Acres Gaming Incorporated (Nasdaq: AGAM) reported today on its first investor conference call held yesterday afternoon.

Bud Glisson, chairman of the board and chief executive officer, reviewed the presentation he gave at the annual stockholders' meeting on Feb. 21, 2001.

Reed Alewel, chief financial officer, provided insight into the company's projected revenues and earnings for the quarters ending March 31, 2001, and June 30, 2001. The company expects revenues in each of those quarters to exceed the record $10.2 million reported in the quarter ended Dec. 31, 2000.

Alewel said that, based on preliminary estimates, the earnings for the first two months of the current quarter alone will exceed the $1.5 million of net income reported in the prior quarter and that the earnings for the month of March are expected to follow this improving trend. Fourth quarter earnings are also expected to exceed the amounts reported in the Dec. 30, 2000, quarter.

Over the next year, revenues are expected to continue to fluctuate based on the timing of delivery of products but not as significantly as in the past. Alewel further explained that gross profit margins will also continue to fluctuate based on the mix of products sold.

The company has increased its headcount to 111 employees, a 34 percent increase since June 30, 2000, in order to deliver and support the company's backlog. This headcount increase translates to a run rate that is approximately $250,000 per month higher than the run rate in June 2000. Other operating expenses are expected to remain relatively flat except for legal expenses that fluctuate as the company's litigation progresses.

A replay of the call will be available through today by dialing 1-800/633-8284 and entering the conference ID of 18115606. In addition, the conference call replay will be available on Acres' website for the next 30 days.

Acres Gaming provides products and services to casinos worldwide, using its proprietary Acres Bonusing Technology(TM) to increase player enjoyment and casino efficiency and profitability. Detailed descriptions of the promotions made available by Acres Bonusing(TM) as well as other products offered by Acres, are available at the company's Web site, www.acresgaming.com. The company has offices in Las Vegas and Corvallis, Ore.

The discussion in this news release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended). Forward-looking statements involve risks and uncertainties and various factors could cause actual results to differ materially from those in the forward-looking statements. Forward-looking statements relate to expected financial results. The following factors, among others, could cause actual results to differ from those indicated in the forward-looking statements: the Company's suppliers may not be able to meet required delivery schedules for components of the products; the Company may not be able to install the products on schedule; the Company's products may not operate to the satisfaction of its customers; various components of the Company's products may not be successfully developed or approved by gaming regulators as planned; the impact of competitive products and pricing, lack of market acceptance, changes in federal or state laws or the administration of such laws; the risk of Nasdaq de-listing; and other risks detailed from time to time in the Company's SEC reports including the report on Form 10-K for the year ended June 30, 2000. Actual results may differ materially from the forward-looking statements.