Alliance Gaming Extends Licensing Agreement With Multimedia Games for Bally Products in New Markets.

Business Editors & High-Tech/Gaming Writers

AUSTIN, Texas--(BUSINESS WIRE)--Sept. 19 2001

Multimedia Games Inc. (Nasdaq:MGAM) announced today that Alliance Gaming Corp. (Nasdaq:ALLY) has extended its licensing agreement with MGAM to include both distributing additional devices from Alliance's Bally Gaming and Systems unit into new markets, and supplying creative content for Multimedia's Class II games.

Under terms of the original agreement, signed in April 2001, MGAM secured distribution rights for Bally Gaming products in the Washington tribal casino market, with Bally Gaming receiving a royalty and a guarantee that MGAM will purchase a minimum number of products from Bally Gaming over a 36-month period.

The extension of the agreement gives Multimedia access to Bally Gaming's complete catalog of game themes for use in Class II bingo games. In addition, Bally Gaming will continue to provide gaming machine cabinets and hardware that Multimedia will outfit with its system components to create a finished gaming device.

"We have already been capitalizing on the compatible technologies our companies share and we are pleased that this extension of our agreement with Multimedia will take Bally games into new markets," said Paul Lofgren, Senior Vice President and General Manager of the Bally Gaming unit. "Multimedia enjoys longstanding relationships with Native American casino interests throughout the country and Bally stands to gain from this foundational legacy that Multimedia has created."

"The Bally machines and game themes are already very popular with players," said Gordon Graves, MGAM's CEO and Chairman of the Board. "With this agreement, the Company will now be able to choose from a library of thousands of games. Use of Bally's player stations also enables MGAM to quickly fill large orders in the rapidly expanding Native American market."

"Bally equipment and game themes are recognized throughout the world," said Gary Loebig, MGAM's Executive Vice President of Sales and Marketing. "We believe Bally-themed games will add to the players' overall gaming experience and satisfaction in Native American gaming halls."

Bally Gaming and Systems, a wholly owned business unit of Las Vegas-based Alliance Gaming Corporation, designs, manufactures, operates and distributes advanced gaming devices and systems worldwide. Additional information on Bally Gaming and Systems can be found at www.ballygaming.com.

Alliance Gaming is a diversified gaming company with headquarters in Las Vegas. The Company is engaged in the design, manufacture, operation and distribution of advanced gaming devices and systems worldwide, and is the nation's largest gaming machine route operator and operates two casinos. Additional information about the Company can be found at www.ally.com.

MGAM provides system services to gaming establishments. These services include designing and developing video lottery and interactive bingo games and TV game shows, delivering them over Betnet(tm), MGAM's proprietary broadband communication network, and providing interconnected electronic terminals for presenting these games to players. Betnet(tm) is a multi-channel network using intranets, local area networks, the Internet, closed-circuit satellite TV and telephone lines. Additional information may be found at www.multimediagames.com.

These comments, including any statements predicated upon or preceded by the words "potential," "believe," "expect" and "should" are considered "forward-looking statements" within the meaning of federal and state securities laws. Such statements are subject to a number of uncertainties that could cause the actual results to differ materially from those expected, including, but not limited to, those described under "Item 1. Description of Business Risk Factors," contained in the Company's Annual Report on Form 10-K for the fiscal year ended Sept. 30, 2000, which are incorporated herein by this reference.