Progressive Gaming International Completes Minority Investment in Magellan.

LAS VEGAS -- Progressive Gaming International Corporation (NASDAQ: PGIC), (the Company) a leading provider of diversified technology and content products and services used in the gaming industry worldwide announced today that the Company has completed its minority investment in Magellan Technology Pty Ltd of Australia (Magellan), an affiliate of Siemens Venture Capital GmbH., Infineon Technologies AG (Infineon), Inc. and other Australia-based investors. Infineon, who manufactures Magellan's microchip, is a global leader in RFID microchip manufacturing.

As a part of this minority interest, Magellan has provided the Company with an exclusive global master license for the use of RFID in gaming worldwide. The technology and intellectual property licensed from Magellan are key components in the Intelligent Table System (ITS) and enables the Chip Manager functionality of ITS with bet recognition through the use of 13.56MHz RFID readers and tags.

President and Chief Executive Officer of the Company Russ McMeekin stated: "Over the course of our partnership with Magellan, we believe RFID has evolved to be a global industry standard. Specifically in gaming, casino operators worldwide have provided us with excellent responses after conducting extensive reviews of the functionality and capabilities of 13.56MHz as a part of the ITS solution. We anticipate that this technology will become widely used in the gaming industry worldwide."

President and Chief Executive Officer of Magellan Tim Frost stated: "Our partnership with Progressive Gaming has clearly accelerated our position in the gaming industry making it one of our fastest growing vertical markets. We expect to continue to lead the charge in the development and innovation of RFID worldwide and provide the gaming industry a continuous flow of existing and new technologies that can be used by casino operators to increase their revenues, improve efficiencies and enhance the security and overall integrity of their operations."

McMeekin concluded: "We expect our interest in Magellan to provide an excellent return on investment to our shareholders, not only through the long term commercial aspects of the relationship, but also potentially through a partial liquidity event sometime in the medium term. In addition to Magellan, we expect to continue to evaluate similar opportunities for potential investments in secure wireless and server based wagering in sports, poker and slots."

About Progressive Gaming International

Progressive Gaming International is a leading supplier of Integrated Casino Management Systems Software and Games for the gaming industry worldwide. The Company develops and distributes an expanding array of slot and table games, plus management and progressive jackpot software systems.

Progressive Gaming International is unique in the industry in offering management, progressive systems and games as a modular yet integrated solution. There is a Progressive Gaming International product in virtually every casino in the world. For further information, visit www.progressivegaming.net.

About Magellan Technology Pty Ltd

Magellan Technology Pty Ltd, Sydney, Australia, is a technology developer, manufacturer and licensor of advanced read and write 13.56MHz RFID systems. Magellan designs and offers RFID chips, inlets and a complete reader portfolio for Magellan's Phase Jitter Modulation (PJM) technology, which complies with the International Standard ISO/IEC 18000 Part 3 Mode 2. The PJM technology is more than 10 times faster than other existing HF technologies. PJM products are optimized for applications where many hundreds of tags are stacked tightly or need to be identified reliably in dynamic situations where tags are presented in all orientations. Magellan develops and licenses its PJM technology world wide to interested parties including other manufacturers and system integrators. Further information is available at www.magtech.com.au.

Safe Harbor Statements under The Private Securities Litigation Reform Act of 1995: This release contains certain forward-looking statements of the Company, including statements regarding the capabilities of the Magellan technology and its use in the Intelligent Table System, the evolution of RFID as a global industry standard and the anticipated return on the Company's investment in Magellan. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, risks related to the implementation of the Magellan technology and the ITS, the risk that the Company may not realize the expected return on its investment in Magellan, the risk that regulatory agencies may not provided final approval of these products in the time frame expected, or at all, the status of rights licensed from content providers, risks related to the Company's ability to enforce and develop its intellectual property rights, including rights licensed from third parties, the risk that patents may exist of which the company is not aware, or that existing patents may provide benefits to third parties beyond those anticipated by the company, the Company's ability to meet its capital requirements, relationships with casino operators, the overall industry environment, customer acceptance of the Company's new products, further approvals of regulatory authorities, adverse court rulings, production and/or quality control problems, the denial, suspension or revocation of privileged operating licenses by governmental authorities, competitive pressures and general economic conditions as well as the Company's debt service obligations. For a discussion of these and other factors which may cause actual events or results to differ from those projected, please refer to the Company's most recent annual report on Form 10-K and quarterly reports on Form 10-Q, as well as other subsequent filings with the Securities and Exchange Commission. The Company cautions readers not to place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims any obligation, to update or revise any forward-looking statements to reflect new circumstances or anticipated or unanticipated events or circumstances as they occur.