BGI Inc. Settles Bexar County Matter.

Business Editors & Entertainment/Gaming Writers

AUSTIN, Texas--(BUSINESS WIRE)--Oct. 21, 2002

BGI Inc. (OTCBB:BGII) today announced that it has settled its ongoing disputes regarding its business activities in Bexar County, Texas with the District Attorney's Office of Bexar County.

During 2001 and early 2002 the Bexar County District Attorney's Office seized eight of the Company's Charity Station machines and $985,435 from the Company's bank accounts. Under the terms of the settlement agreement Bexar County will retain all of the funds seized by it except for $420,478 which will be held in escrow pending the resolution of the Securities and Exchange Commission investigation or earlier release as may be provided under the terms of the escrow arrangement.

Under the terms of the settlement the Company also agreed not to operate any Charity Stations or similar sweepstakes machines in Bexar County until such time as there is a definitive court ruling or legislation confirming that such activities are legal. This settlement does not admit guilt, fraud or any wrongdoing on the part of BGI. The State and BGI acknowledged that the settlement is a compromise to avoid the cost of protracted litigation.

About BGI Inc.

BGI Inc. ( http://www.bgicorp.com ) 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 a 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.

CORPORATE CONTACT:
Lynda Kirby
BGI Inc.
Suite 105, 13581 Pond Springs Road
Phone: [phone]
Fax: [phone]
Web: www.bgicorp.com