BGI Appoints Two New Board Members.

Business Editors

AUSTIN, Texas--(BUSINESS WIRE)--Aug. 23, 2001

BGI, Inc. (OTCBB:BGII) (http://www.bgicorp.com) today announced the appointment of Mr. Andy Marr and Mr. Tim Harris to its Board of Directors.

Mr. Marr is a founding member and managing director of National Capital Management, a privately held investment firm that manages bankruptcy-related debt throughout the United States. He has over seven years of experience in commercial finance, factoring and equity investments, and has also practiced law in the areas of commercial transactions and creditor representation. Mr. Marr received his JD from the University of Tennessee Law School in 1988. Given his extensive legal background and experience in capital markets, Mr. Marr will lend particular expertise to BGI's efforts in broadening its product and customer base through new acquisitions.

Mr. Harris is currently the Executive Vice President of Regious Bank/Texas Heritage Bank. He has held senior positions at several leading financial institutions and has also served as the President of the Hartland Bank's Georgetown Division from 1990 to 1997. Mr. Harris has completed the Executive Development Program at Texas Christian University's M.J. Neely School of Business and was a member of the Graduate Banking School of Southern Methodist University until 1982. In addition to his professional qualifications, Mr. Harris has been active with charitable and volunteer organizations such as the Red Cross, the Cystic Fibrosis Foundation and the Kiwanis Club. He will contribute directly to the development of BGI's overall marketing strategy.

"We've made a tremendous effort over the past several months to secure the right balance of management and executive experience at BGI, and today's announcements are a tangible result of that effort," commented Mr. Reid Funderburk, Chairman and CEO of BGI, Inc. "With his legal and financial background, Andy will bring focus to our acquisition efforts, while Tim's experience with charitable and volunteer organizations will offer new insight and a better understanding of our target markets."

With the appointment of Mr. Marr and Mr. Harris, BGI now has five members on its Board of Directors.

About BGI, Inc.

Based in Austin, Texas, BGI, Inc. is a leading provider of instant cash sweepstakes games in the United States. BGI promotes the sale of prepaid phone cards with its stand alone Lucky Strike prepaid phone card dispensers and provides charitable organizations with alternative fund raising programs with its Charity Station machine. Both products feature an instant win sweepstakes with an alternative method of entry with no purchase or donation necessary. BGI has been publicly traded and fully reporting since December 1994.

"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.