Asensio & Company Announces Investment Opinion on Multimedia Games.

Business Editors

The following is an investment opinion issued

by Asensio & Company, Inc.

NEW YORK--(BUSINESS WIRE)--Nov. 4, 2003

A recently published analyst report calculates Multimedia Games, Inc.'s (NASDAQ: MGAM, $38.64) potential annual gross earnings at Casino San Pablo, which is located on Indian land 20 miles from downtown San Francisco, of up to $21.9 million. Given Multimedia's regulatory problems and the competition's superior technology, we see no reason for the Lytton Band of Pomo Indians to contract with Multimedia other than based on price and their indebtedness to Multimedia. However, even assuming Multimedia gets 100% of the Lytton's Class II business, and that the Lytton agree to play Multimedia's New Generation not-NIGC-classified machines instead of the approved but slower-playing version of Reel Time Bingo, we believe that San Pablo's contribution will be between $2.5 million and $4.4 million before capital and operating costs. Furthermore we question the credit worthiness of Multimedia's $21 million loan and the wisdom of investing additional millions placing Class II machines at Casino San Pablo when the Lytton can pursue Class III gaming. We are not alone. Sonoma Investors General Partnership ("Sonoma"), the Lytton's long time financial partners, and the Rumsey Tribe, which operates the Cache Creek Indian Class III casino located 90 miles north of San Francisco, did not make the loan. In fact, Sonoma sold out completely.

Proceeds from Multimedia's loan to the Lytton were used to pay-off Sonoma. Simultaneously with Multimedia's loan the land was transferred to the Secretary of the Interior to hold in trust for the Lytton thereby converting the property into sovereign Indian land. Sam Katz, the Philadelphia Republican mayoral candidate and the leader of Sonoma, sold out. He has been involved with this controversial land deal since at least 1996. Mr. Katz's group had not allowed the land to be converted to Indian Territory.

The acceptance of the Lytton's land into trust that occurred on October 9, 2003 was backdated to before October 17, 1988. This backdating is necessary to allow the Lytton to avoid the difficult and expensive process of complying with current laws restricting "reservation shopping," which is exactly what the Lytton have done. Legislation has been introduced that, if passed, would reverse the backdating and subject the Lytton to existing regulations.

Multimedia used all its available cash and some borrowings to fund the Lytton loan. The Lytton's creditworthiness and land status is questionable. We believe that Multimedia's willingness to resort to this irregular transaction is indicative of its poor circumstances. Namely Multimedia's business is reliant on games that the NIGC Chairman has stated do not meet all of the characteristics or requirements of an NIGC-classified Class II game, has failed to convert all its games in the field to legal models, and faces new technically superior competition, which unlike Multimedia is unencumbered by regulatory problems.

We believe investors do not serve themselves by playing down the importance of Multimedia's serious regulatory problems and International Game Technology's (NYSE: IGT, $33.06) entry into the small Class II market. As we have stated, we believe Multimedia's competitive advantage was its willingness to assume regulatory risks. We believe that the market and regulatory environment has changed in a manner adverse to Multimedia and that investors have been told the exact opposite.

On October 02, 2003 Asensio & Company, Inc. initiated coverage of Multimedia Games, Inc. with a Strong Sell and Short Sell opinion. A summary of the basis of our opinion is found in the last paragraph of that report published on www.asensio.com. All of our reports are covered by the terms and conditions of the mandatory user agreement located at http://www.asensio.com/TermsOfUse.aspx. The statements below are a part of the mandatory user agreement whose entirety is incorporated herein by reference. These statements, and all of the statements contained in the mandatory user agreement, are intended to strictly limit our potential liability to you and your possible legal rights to the fullest extent of the law. Readers are advised to carefully read the entirety of the mandatory user agreement and strictly adhere to the directions given therein.

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