Bally Technologies, Inc. Reports Record Annual Diluted EPS for Its Fiscal Year Ended June 30, 2009 of $2.22 on Revenues of $883 Million.

LAS VEGAS -- Bally Technologies, Inc. (NYSE: BYI)

* DILUTED EPS INCREASED 20 PERCENT TO A RECORD OF $2.22 PER SHARE; FOURTH QUARTER DILUTED EPS INCREASED 7 PERCENT TO A FOURTH QUARTER RECORD OF $0.58 PER SHARE

* GAMING OPERATIONS REVENUES INCREASED 17 PERCENT OVER LAST YEAR TO A RECORD $275 MILLION

* OPERATING MARGIN IMPROVED TO A RECORD 24 PERCENT FROM 22 PERCENT IN THE PRIOR YEAR

* CASH FLOW FROM OPERATIONS INCREASED 143 PERCENT OVER LAST YEAR TO A RECORD $165 MILLION

* INITIATES FISCAL 2010 DILUTED EPS GUIDANCE IN THE RANGE OF $2.25 TO $2.50

Bally Technologies, Inc. (NYSE: BYI), a leading global gaming technology supplier, announced today record fourth quarter and fiscal year diluted earnings per share ("Diluted EPS") of $0.58 and $2.22 on revenue of $205 million and $883 million for the three months and year ended June 30, 2009, respectively. Fiscal year 2009 Diluted EPS of $2.22 was within the Company's original guidance of $2.10 to $2.50 provided on May 12, 2008.

"Despite the continued challenging economy which has negatively impacted our customers' capital spending, our diversified business model drove yet another very profitable quarter," said Richard M. Haddrill, the Company's Chief Executive Officer. "We also continued to build our recurring revenues to 48 percent of total revenues in the fourth quarter versus 39 percent in the same period last year."

"We continued to strengthen our balance sheet in the fourth quarter as we further reduced debt by $61 million while still repurchasing $7 million of our stock and increasing our cash balance by $10 million," added Robert C. Caller, the Company's Chief Financial Officer. "Improved gross margins and control of expenses allowed us to drive our fourth quarter operating margin to 25 percent during the quarter from 23 percent in the same period last year."

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Three Months Ended June 30, 2009 Compared with Three Months Ended June 30, 2008

* Diluted EPS increased to a fourth quarter record of $0.58 as compared with $0.54 in the same period last year.

* Net income increased to a fourth quarter record $33 million as compared with $31 million in the same period last year.

* Adjusted EBITDA increased to a fourth quarter record $77 million as compared with $75 million in the same period last year.

* Total revenues decreased to $205 million as compared with $247 million in the same period last year.

* Operating income decreased to $51 million as compared with $56 million in the same period last year.

* Operating margin increased to 25 percent as compared with 23 percent in the same period last year.

* Selling, general, and administrative ("SG&A") expenses decreased to 26 percent of total revenue as compared with 27 percent in the same period last year.

* Research and development ("R&D") expenses increased to 9 percent of total revenue as compared with 7 percent in the same period last year.

Year Ended June 30, 2009 Compared with Year Ended June 30, 2008

* Diluted EPS increased to a record $2.22 as compared with $1.85 last year.

* Net income increased to a record $126 million as compared with $107 million last year.

* Adjusted EBITDA increased to a record $299 million as compared with $272 million last year.

* Free Cash Flow increased by 163 percent to $131 million as compared to $50 million last year.

* Total revenues decreased to $883 million as compared with $900 million last year.

* Operating income increased to a record $215 million as compared with $199 million last year.

* Operating margin increased to a record 24 percent as compared with 22 percent last year.

* SG&A expenses decreased to 26 percent of total revenue as compared with 27 percent last year.

* R&D expenses increased to 9 percent of total revenue as compared with 7 percent last year.

During the fourth quarter of fiscal 2009, the Company repurchased approximately 266,000 shares of its common stock for approximately $7 million. During fiscal 2009, the Company repurchased more than 1.5 million shares of its common stock for approximately $38 million, leaving approximately $62 million remaining under its current share-repurchase authorization.

At June 30, 2009, the Company's debt leverage ratio was 0.7. During the fourth quarter of fiscal 2009, in addition to regularly scheduled debt payments, the Company repaid the $50 million outstanding on its revolving credit facility and its $5 million of outstanding capital-lease obligations. The Company fixed the LIBOR rate through the September 2012 maturity of its term loan at 1.89 percent. Consequently, the term loan rate will continue to be fixed at 4.64 percent as long as the Company's debt leverage ratio remains below 1.0.

Unaudited summary financial information for Bally Gaming Equipment and Systems for the three months and years ended June 30, 2009 and 2008 is presented below:

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"Our Gaming Operations business generated record revenues during the fourth quarter even though we are just beginning to benefit from recent new product releases including our Digital Tower Series games and Jumbo cabinets. In addition, we are now starting to release additional content including spinning-wheel games and our DualVision[TM] two-player cabinet," said Gavin Isaacs, the Company's Chief Operating Officer. "Despite a continued sluggish global economy and replacement cycle, we were able to return to our normal ship-share levels during the fourth quarter. We remain optimistic that our customers will begin to increase spend on their floors beginning in calendar 2010, and that our expanding product pipeline in both video and steppers will allow Bally to continue to gain market share."

"We remain very positive about the current state of our systems business, including our newer products, our competitive position, and our expanding backlog and sales pipeline," said Ramesh Srinivasan, the Company's Executive Vice President - Bally Systems.

Highlights of Certain Results for the Three Months Ended June 30, 2009

Gaming Equipment

* Revenues decreased to $78 million as compared with $114 million in the same period last year.

* New gaming device sales decreased to 5,043 units as compared with 7,360 units in the same period last year due to a continued sluggish North America replacement market.

* New unit sales to international customers were 1,042 units, or 21 percent of total new-unit shipments, as compared with 1,350 units in the same period last year.

* ASP of new gaming devices increased to $14,245 per unit, primarily as a result of product mix.

* Gross margin increased to 49 percent from 45 percent in the same period last year, primarily due to the increase in ASP, lower material costs, higher conversion kit sales, and lower international goods and service tax.

Gaming Operations

* Revenues increased to a record $71 million as compared with $69 million in the same period last year, primarily driven by an increase in premium revenue units and an increase in revenue per unit.

* Gross margin increased to a record 73 percent from 68 percent in the same period last year, primarily as a result of significant increases in both rental and participation revenue and lower costs.

Systems

* Revenues decreased to $47 million as compared with $54 million in the same period last year as a result of the relative softness in technology-related capital investment decisions made in the first nine months of fiscal 2009.

* Gross margin decreased to 73 percent from 75 percent in the same period last year.

* Maintenance revenues increased to a record $14 million as compared with $12 million in the same period last year.

Highlights of Certain Results for the Year Ended June 30, 2009

Gaming Equipment

* Revenues decreased to $357 million as compared with $410 million last year.

* New gaming device sales decreased to 22,108 units as compared with 26,397 units last year due to the sluggish North America replacement market.

* New unit sales to international customers increased to a record 5,260 units, or 24 percent of total new-unit shipments, as compared with 5,134 units last year.

* ASP of new gaming devices, excluding OEM sales, increased to a record $14,259 per unit as compared with $13,294 per unit last year.

* Gross margin increased to a record 47 percent from 45 percent in the same period last year, primarily due to the increase in ASP, lower material and production costs, and reduced inventory obsolescence charges.

Gaming Operations

* Revenues increased to a record $275 million as compared with $236 million last year, driven by an increase in the installed base of premium games and an increase in revenue per unit.

* Gross margin increased to a record 71 percent from 66 percent last year, primarily as a result of significant increases in both rental and participation revenue.

Systems

* Revenues increased to a record $212 million as compared with $206 million last year, driven by the continued acceptance of our products by both new and existing customers.

* Gross margin remained constant at 73 percent in both periods.

* Maintenance revenues increased to a record $51 million, as compared with $42 million in the same period last year.

Fiscal 2010 Business Update

The Company initiated fiscal 2010 guidance for Diluted EPS of $2.25 to $2.50. This guidance is based upon less than optimal visibility into the fiscal year due to the current weak global economy and sluggish North American gaming machine replacement market, offset by the Company's new product introductions and an expected improvement in customer spending beginning in calendar 2010. This guidance does not consider any potential benefit from any recently announced or potential new jurisdictions in North America or international markets. As a result of normal seasonal trends and the expectation of a modest improvement in customer spending in calendar year 2010, the Company expects its Diluted EPS in the second half of fiscal 2010 will exceed the first half, with the first half representing approximately 40-45 percent of the total and the second quarter being stronger than the first quarter.

The Company has provided this range of earnings guidance for fiscal 2010 to give investors general information on the overall direction of its business at this time. The guidance provided is subject to numerous uncertainties, including, among others, overall economic and capital market conditions, the market for gaming devices and systems, competitive product introductions, complex revenue-recognition rules related to the Company's business, and assumptions about the Company's new product introductions and regulatory approvals.

Non-GAAP Financial Measures

The following table reconciles the Company's net income, as determined in accordance with generally accepted accounting principles ("GAAP"), to Adjusted EBITDA:

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Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, including asset charges and share-based compensation) is a supplemental non-GAAP financial measure used by the Company's management and by some industry analysts to evaluate the Company's ability to service debt, and is used by some investors and financial analysts in the gaming industry in measuring and comparing Bally's leverage, liquidity, and operating performance to other gaming companies. Adjusted EBITDA for the year ended June 30, 2009 includes a $3 million insurance reimbursement from previous claims related to the 2005 U.S. Gulf Coast hurricanes. Adjusted EBITDA should not be considered an alternative to operating income or net cash from operations as determined in accordance with GAAP. Not all companies calculate Adjusted EBITDA the same way and the Company's presentation may be different from those presented by other companies.

The following table reconciles the Company's cash flows from operating activities, as determined in accordance with GAAP, to Free Cash Flow:

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Free Cash Flow, as calculated by cash flows from operating activities less capital expenditures, is a supplemental non-GAAP financial measure used by the Company's management to evaluate the Company's ability to generate excess cash that can be used for investments, debt repayment, stock repurchases, and other activities. Free Cash Flow should not be considered in isolation or as an alternative to cash flow from operating activities as determined in accordance with GAAP. Not all companies calculate Free Cash Flow the same way, and the Company's presentation may be different from those presented by other companies.

Earnings Conference Call and Webcast

As previously announced, the Company is hosting a conference call and webcast today at 4:30 p.m. EDT (1:30 p.m. PDT). The conference-call dial-in numbers are 866-271-5140 or 617-213-8893 (International); passcode "Bally". The webcast can be accessed by visiting BallyTech.com and selecting "Investor Relations." Interested parties should initiate the call and webcast process at least five minutes prior to the beginning of the presentation. For those who miss this event, an archived version will be available at BallyTech.com until September 11, 2009.

About Bally Technologies, Inc.

With a history dating back to 1932, Las Vegas-based Bally Technologies designs, manufactures, operates, and distributes advanced gaming devices, systems, and technology solutions worldwide. Bally's product line includes reel-spinning slot machines, video slots, wide-area progressives, and Class II, lottery, and central determination games and platforms. As the world's No. 1 gaming systems company, Bally also offers an array of casino management, slot accounting, bonusing, cashless, and table-management solutions. The Company also owns and operates Rainbow Casino in Vicksburg, MS. Additional Company information, including the Company's investor presentations, can be found at BallyTech.com.

This news release may contain "forward-looking" statements within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and is subject to the safe harbors created thereby. Forward looking-statements are subject to change and involve risks and uncertainties that could significantly affect future results, including those risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. Although the Company believes any expectations expressed in any forward-looking statements are reasonable, future results may differ materially from those expressed in any forward-looking statements. The Company undertakes no obligation to update the information in this press release except as required by law and represents that the information speaks only as of today's date.

-- BALLY TECHNOLOGIES, INC. --

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