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GAMMA REPORTS SECOND QUARTER LOSS

    BILLERICA, Mass., Aug. 5 /PRNewswire/ -- Gamma International, Ltd. (NASDAQ: GAMM) today announced that it expects to report a loss of approximately $6.8 million for the quarter ending June 30, 1993, compared to a loss of $1.3 million for the same period in 1992.
    The loss is principally due to a one time non-cash provision of $5.5 million reflecting a writedown of the value of assets acquired in the 1992 acquisition of Creative Games Technologies, Inc.
    The company stated that it has reached an agreement in principle with one of Creative Games' tribal customers and a final agreement with a second tribal customer regarding settlement of past due receivables and a provision for terminating the equipment leases which will result in a lower level of income to the company than would have been the case with the original lease contracts.  The second quarter special loss provision reflects the lower value of the lease contracts based on these settlement agreements with the tribes.
    Richard Kidney, chairman stated, "This special loss provision reflects our assessment of the current value of the Creative Games lease contracts based on the new agreements we have reached with our tribal customers.  These new agreements have been negotiated in good faith by all parties and represent a significant reduction in the level of payments scheduled under the original lease contracts.  We expect that no further adjustments will be required in the future.  With the resolution of this problem we can now direct our resources towards new opportunities in the gaming industry."
    The company also reported that the board of directors has set the date of the 1993 annual meeting of shareholders for Sept. 14, 1993, in Atlantic City, N.J.  Aug. 13, 1993 has been established as the record date for voting shares at the meeting.
    Gamma's shares, warrants and units are traded on NASDAQ under the symbols GAMM, GAMMW and GAMMU, respectively.
    -0-             08/05/93
    CONTACT:  Richard D. Kidney, chairman of Gamma International, Ltd., 508-670-0794, or John Swanson of Swanson Communications, 212-683-4890, for Gamma International Ltd.
    (GAMM) CO:  GAMMA INTERNATIONAL, LTD. IN:  CNO SU:  ERN ST:  NY


-- NY088 -- X362 08/05/93
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Publication:PR Newswire
Date:Aug 5, 1993
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