Alliance Gaming Results Expected to Be Lower Than Estimates; Insiders Expand Ownership.

LAS VEGAS--(BUSINESS WIRE)--Oct. 29, 1998--Alliance Gaming Corp. (Nasdaq:ALLY) Thursday announced that anticipated results for the quarter ended Sept. 30, 1998, will be 8 cents to 10 cents lower than analysts' consensus estimates of breakeven.

In addition, management estimates results for the quarter ending Dec. 31, 1998, will also be below consensus estimates of a 3 cents per share profit by approximately 4 cents to 6 cents. For both quarters the lower results are attributable to a lower number of gaming machine units sold worldwide, and continuing delays in the rollout of new high-margin products.

The company expects to release actual results for the September 1998 quarter on Nov. 10, 1998.

"We had anticipated a small profit in the first half of fiscal 1999, but due to lower-than-expected demand for gaming units on a worldwide basis, and a somewhat reduced EBITDA margin on non-Gambler Bonus machines in our Nevada Route business, actual six-month results are now estimated to be a loss of 9 cents to 13 cents," stated Morry Goldstein, president and chief executive officer.

"Our management remains focused on implementing our business strategy and introducing new products while aggressively managing costs. Our outlook for the second half of fiscal 1999 has not changed, as we anticipate an improvement in all business sectors.

"Our board of directors and management are strongly committed to the success of our strategy," continued Goldstein, "as evidenced by the continued pattern of insider buying of our common stock over the past year by our board members and senior management.

"During the months of August and September 1998, these individuals purchased an aggregate of over 450,000 shares, representing an investment of over $1.3 million. While our short-term results are not as favorable as anticipated, the board and management continue to be excited about and stand behind the prospects for our company."

Alliance Gaming is a diversified gaming company with headquarters in Las Vegas. The company is engaged primarily in the design, manufacture and distribution of advanced gaming devices and systems worldwide, and is the nation's largest gaming machine route operator and operates two regional casinos.

The information contained in this news release may contain "forward-looking" statements within the meaning of section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the safe harbor created thereby. Such information involves important risks and uncertainties that could significantly affect results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements herein. Future operating results may be adversely affected as a result of a number of risks detailed from time to time in the company's filings with the Securities and Exchange Commission.