BGI Announces Machine Seizures.

Business Editors & Gaming Writers

AUSTIN, Texas--(BUSINESS WIRE)--Jan. 31, 2002

BGI Inc. (OTCBB:BGII) today announced that it has become aware that a total of 72 of the Company's Charity Station machines leased by the Company to charities and located at two locations in Laredo, Texas, together with the currency contained in the machines, were seized late last night by local authorities from the locations in which the machines were being operated.

The Company believes that the seizures were made at the request of the Texas State Lottery Commission acting in conjunction with the Texas Attorney General's Office. The Company also became aware that 20 of its Charity Station machines located in Forth Worth, Texas, together with the currency that was in the machines, were previously seized by the Forth Worth Police Department from the location in which the machines were being operated.

The Company also noted that the operator of another location in Laredo, Texas, where 29 of its Charity Station machines were located, has voluntarily closed that location and, in response to requests by local regulators, the operator of a location in Del Rio, Texas, in which 30 of the Company's Charity Station machines were located has voluntarily closed that location.

The Company has been advised that operators at other locations where its Charity Station machines are located are in the process of determining whether or not to continue their operations in light of the uncertain regulatory climate.

No action has been taken against the Company with respect to the machines seized in either Laredo or Fort Worth and no notice has been issued to the Company to show cause why the seized machines or proceeds contained in the machines should be forfeited. The Company believes it has meritorious basis for reclaiming both its machines and proceeds and intends to vigorously pursue all legal remedies available to it.

BGI Inc. is a gaming company that designs, distributes and markets sweepstakes-driven gaming products. The Company's primary product -- the Charity Station -- combines entertaining, interactive games with various sweepstakes incentives, and are extensively used by non-profit organizations as an alternative means of fund raising. These unique products are placed by the Company's charity customers in non-profit venues, social clubs and other non-casino venues. BGI Inc. was founded in 1994 and has offices in Austin, Texas. The Company currently trades on the OTC Bulletin Board under the symbol BGII.

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: These statements made by BGI Inc. (BGII) may be forward-looking in nature, particularly as related to the business plans of the Company within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934, and are subject to the safe harbor created by these sections. Actual results may differ materially from projected statements. BGI Inc. believes that its primary risk factors include, but are not limited to the need for substantial financial requirements; the need to develop effective internal processes and system; changes in the overall economy; continued and future strategic alliances; changes in technology; the number and size of competitors and the mix of products and services offered in its markets; and changes in the law and regulatory policy and the enforcement of such laws and policies.