Multimedia Games Declares 2-for-1 Stock Split; Additional Central Determinant System-Based Products Go Live.

Business Editors

AUSTIN, Texas--(BUSINESS WIRE)--Feb. 2, 2004

Multimedia Games, Inc. (Nasdaq: MGAM) today announced that its Board of Directors has declared a 2-for-1 split of the Company's Common Stock. Earlier today, shareholders approved a proposal to increase the number of authorized common shares from 25 million to 75 million. The stock split will be in the form of a stock dividend of one additional share of the Company's Common Stock for each share held. New shares will be distributed on February 27, 2004 to shareholders of record as of the close of business on February 16, 2004. Based upon the total number of outstanding shares of Common Stock as of December 31, 2003, the stock split will increase the outstanding shares of Common Stock to approximately 27.0 million shares.

Commenting on the stock split, Clifton Lind, President and CEO of Multimedia Games ("Multimedia") said, "The Board believes the stock dividend will enhance the liquidity of Multimedia shares and make them attractive to a broader range of investors. The Board's decision to effect a stock dividend recognizes the Company's strong historical performance, as well as the significant long-term growth opportunities that we believe lie ahead."

Multimedia also announced today that shareholders at its Annual Meeting of Shareholders approved all other matters brought before the meeting, including the election of all six directors, the 2003 Outside Directors' Stock Option Plan, and the appointment of BDO Seidman, LLP as the Company's independent accountants.

Mr. Lind also commented on business developments that have occurred since the Company's announcement of its fiscal 2004 first quarter results, "Since providing an update to investors early last week, Multimedia has continued its revenue diversification initiatives. Last Wednesday, our central determinant system for the New York Lottery's 'racino' video lottery market was activated when the first racetrack, Saratoga Gaming and Racing, opened to broad demand for its approximately 1,300 video lottery terminals. This represents the third new product we have introduced in the last six weeks.

"Also, last Thursday, we implemented a second Tribal Instant Lottery Game ("TILG") system, and installed 138 TILG units at another of California's largest tribal hotel/casinos. We are pleased that this placement of TILG units marks the second instance of a California tribal casino and its gaming commissioners' embracing our innovative TILG offering as a way of meeting the growing demand at their facilities. The installation was the result of the conversion of our Class II player stations already installed at the facility. This new TILG system, which runs on our Gen4 operating system, is a one-touch game that is based on a simulated scratch-off lottery. TILG units that we have deployed earlier this fiscal year in another California tribal casino continue to perform at levels better than our Class II network average."

Lind concluded, "Both the New York central system and the TILG units are excellent examples of Multimedia's ability to develop and deploy innovative products that are based on our industry- leading central determinant system technology. This technology has proven to be tangible evidence of our ability to continue offering our existing customers and new customers gaming solutions that best fit their needs, regardless of how specialized they might be."

About Multimedia Games, Inc.

Multimedia Games, Inc. is the leading supplier of interactive electronic games and player stations to the rapidly growing Native American gaming market. The Company's games are delivered through a telecommunications network that links its player stations with one another both within and among gaming facilities. Multimedia Games designs and develops networks, software and content that provide its customers with comprehensive gaming systems. The Company also offers systems and products for the growing racino, charity and commercial bingo markets. The Company's ongoing development and marketing efforts focus on new Class II gaming systems and products, Class III video lottery systems for use by Native American tribes throughout the United States, and products for charity bingo opportunities. Additional information may be found at www.multimediagames.com.

This press release contains forward-looking statements that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are generally accompanied by words such as "will," "would," "could," "expect," "plan," "hope," and words of a similar nature that convey future meaning. Future events involve risks and uncertainties that may cause actual results to differ materially from those we currently anticipate. Such risks and uncertainties include, but are not limited to: (i) the risk that our business may not develop as we anticipate in the charity, Tribal Instant Lottery Game or racino video lottery markets; (ii) the risk that long-term growth opportunities we currently identify may not in fact develop into meaningful sources of revenue or earnings for MGAM; (iii) continuing risk that legal developments, such as new federal circuit court or U.S. Supreme Court decisions, could impair or virtually eliminate the ability of our tribal customers to offer electronic games in the Class II market; (iv) the risk of an impaired competitive position for our games as a result of changes we made in order to obtain a Class II certification letter from the NIGC; (v) the risk that our new Gen4 system may encounter technological or other difficulties during its initial deployment; (vi) risks that our development projects with our tribal customers may not lead to placement of our games with such customers; (vii) risks that markets such as California, that we believe represent opportunities for our products, may not emerge as we anticipate; (viii) the risk of future regulatory enforcement action against versions of our games that have not been certified by the NIGC; (ix) the impact of economic conditions on both the play of our games in our customers' facilities, and on our customers' willingness to lease additional games from us; (x) new risks and challenges we confront as we expand into non-Native-American gaming activities; (xi) risks associated with a high level of customer and geographic concentration; and (xii) the risks that our customers' purchases of our products might decline in light of these or other developments. Other important risks and uncertainties that may affect our business are detailed from time to time in the "Certain Risks" and the "Risk Factors" sections and elsewhere in our filings with the Securities and Exchange Commission. We undertake no obligation to update information in this release.