Bingo and Gaming International Regains Exclusive Operating and Sales Rights to Lucrative Oklahoma Territory.

AUSTIN, Texas--(BUSINESS WIRE)--Aug. 10, 1999--

Bingo and Gaming International Inc. (OTC BB:BING), an Austin-based distributor of prepaid phone cards and machines that distribute its prepaid phone cards, announced today that it has signed a contract that returns to the company exclusive operating rights for its Lucky Strike machines in the state of Oklahoma. The deal with Prestige Distributing, the company that formerly operated the company's machines in the state, turns all sales, service and operations rights back over to Bingo and Gaming International as of Aug. 1, 1999. Oklahoma has traditionally been one of the most lucrative markets for the company and should become even more so now.

This is a significant move for Bingo and Gaming International because 74 of its 325 company-owned machines are located in Oklahoma. The company usually recognizes higher net profits on the machines it operates directly. In addition, BGI plans to increase route operations that permit more rapid collection of cash receipts.

"Prestige Distributing provided the boost the company needed to rapidly penetrate a large market and obtain name recognition for its product as well as promote solid relationships with the retail locations. Our leap into Oklahoma as an operator should put Bingo and Gaming in position to generate even more profits from the existing business in that territory," predicts Reid Funderburk, CEO of Bingo and Gaming International.

Bingo and Gaming International sells, rents, operates and services Lucky Strike prepaid phone card vending machines. These machines employ a novel marketing concept, which permits consumers to enter a free promotional sweepstakes offering cash prizes from $1 to $1,000 with every phone card purchase. The company also operates as a lessor of charity bingo facilities.

The company's growth strategy includes selectively broadening the geographic scope of its operations by entering new markets. Pending legislation and distribution contracts may enable Bingo & Gaming International to sell its machines in several more states this year than it has done in the past. The company already has its machines placed in Arizona, California, Connecticut, Idaho, Illinois, North Dakota, Ohio, Oklahoma, Pennsylvania and Texas. Most of its machines are located in charitable bingo halls and Indian bingo facilities, but some are located in bars and bowling alleys.

For more information, contact Theresa Rasmussen or Patricia Cunningham of Merger Communications at 713/267-2328.

The statements made by Bingo & Gaming International (BGI) may be forward looking in nature. Actual results may differ materially from these projected statements. BGI 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 systems; changes in the overall economy; changes in technology; the number and size of competitors and the mix of product and services offered in its markets; and changes in the law and regulatory policy. Merger Communications (Merger) is a media relations firm employed by BGI. The statements and opinions presented here represent the views of BGI, not Merger, as the release is based on the information provided by BGI. Merger and BGI believe that all information herein has been obtained from sources considered reliable, but can not guarantee that the statements presented herein are accurate or complete. Merger's compensation for its media relations services, including preparation of press releases, consists of a monthly retainer and stock. Merger may have a long position in the securities of the companies in which it distributes information to the media, and Merger may be buying or selling securities in the course of its regular business.