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BALLY GAMING INTERNATIONAL INC. REPORTS 1992 RESULTS

 LAS VEGAS, Feb. 26 /PRNewswire/ -- Bally Gaming International Inc. (NASDAQ: BGII) announced today net income of $5.3 million, or 50 cents per share, for the fiscal year ended Dec. 31, 1992, compared to $5.0 million, or 48 cents per share, in 1991. Revenues for 1992 were $163.8 million, an increase of 7 percent over 1991 revenues of $153.6 million.
 For the fourth quarter, the company reported a net loss of $700,000, or 6 cents per share, compared to net income of $1.3 million, or 13 cents per share, in the comparable 1991 period. Revenues were $40.3 million, compared to $35.7 million in the fourth quarter of 1991, an increase of 13 percent. The results for the fourth quarter of 1992 were adversely affected by a $1.3-million increase in the company's provision for doubtful receivables pertaining to sales of video lottery terminals in the Louisiana market. The increased provision was recorded primarily because this emerging market has developed at a slower-than-expected rate, thereby increasing financial pressure on customers.
 Bally Gaming, the gaming machine manufacturer and distributor based in Las Vegas, reported revenues of $13.8 million, compared to $7.8 million in the fourth quarter of 1991, which represents an increase of 76 percent. An operating loss of $3.3 million was reported for the quarter, compared to an operating loss of $1.9 million for the comparable 1991 period. The decline in operating results was caused by higher selling, general and administrative expenses along with the aforementioned charge of $1.3 million related to the Louisiana market, partially offset by higher revenues and gross margins.
 Bally Wulff, the German wall machine manufacturer and distributor, reported revenues of $27.4 million, compared to $28.8 million in the fourth quarter of 1991, which represents a decline of 5 percent. Operating income was $4.7 million, compared to $5.7 million for the comparable 1991 quarter. The decline in operating income was due primarily to lower sales levels and an increase in selling, general and administrative expenses.
 Richard Gillman, chairman and chief executive officer of the company, stated, "Although the financial results for the fourth quarter were below expectations, we believe the company has made substantial progess during 1992 in its program to improve its competitive position in the U.S. markets. Our comprehensive product development and repositioning effort at Bally Gaming should be completed by mid-1993. We anticipate beginning to recognize the results of this program in the second half of 1993. We encourage our shareholders to be patient in the short term while we continue to build a company to effectively compete in this exciting industry throughout the next decade."
 Bally Gaming International designs, manufactures and distributes gaming and video lottery products through its Bally Gaming Inc. subsidiary based in Las Vegas and its Bally Wulff subsidiaries in Berlin and Hanover, Germany.
 NOTES:
 (A) Bally Gaming International Inc. ("the company") was organized in August 1991 to consolidate the gaming machine manufacturing and distribution operations of Bally Manufacturing Corp. ("Bally"). These operations have previously been conducted by Bally under the names of Bally Wulff ("Wulff"), the German wall machine operation, and Bally Gaming ("Gaming"), the U.S.-based gaming machine operation. The summary results of operations for the 1991 periods reported present the results of combined operations of the Wulff and Gaming operations. Bally completed an initial offering of common stock of the company to the public in November 1991, whereby 3,000,000 shares of the 10,000,000 shares then outstanding were sold at $12.00 per share. Subsequently, the company's underwriters exercised an option to purchase an additional 450,000 shares of common stock from the company for $12.00 per share. Earnings-per-share calculations for the 1991 periods presented assume that 10,450,000 shares were outstanding.
 (B) As previously announced, on July 16, 1992, Bally completed a public offering of 4,547,600 shares of the company's common stock which it owned. The company did not receive any of the proceeds of the offering. Bally now owns approximately 17 percent of the outstanding common stock of the company.
 (C) The higher effective tax rate for the 1992 periods presented reflect that no tax benefits are available on operating losses generated at Bally Gaming as the company is in a net operating loss carry-forward position in the United States. Bally Gaming had previously received benefit from operating losses under a tax sharing agreement with Bally which was terminated in November of 1991.
 BALLY GAMING INTERNATIONAL INC.
 SUMMARY OF OPERATING RESULTS
 Year Ended Dec. 31: 1992 1991
 CONSOLIDATED/COMBINED:
 Revenues $163,781,000 $153,648,000
 Operating income $ 13,930,000 $ 12,390,000
 Interest expense 1,951,000 1,602,000
 Income before income taxes 11,979,000 10,788,000
 Income tax provision 6,725,000 5,784,000
 Net income $ 5,254,000 $ 5,004,000
 Net income per share of common stock $ 0.50 $ 0.48
 Weighted average of common
 shares outstanding 10,572,501 10,450,000
 GAMING:
 Revenues $ 59,156,000 $ 37,385,000
 Operating loss $ (1,388,000) $ (7,085,000)
 WULFF:
 Revenues $108,036,000 $118,104,000
 Operating income $ 15,775,000 $ 19,475,000
 Three Months Ended Dec. 31: 1992 1991
 CONSOLIDATED/COMBINED:
 Revenues $ 40,291,000 $ 35,665,000
 Operating income $ 1,372,000 $ 3,741,000
 Interest expense 543,000 236,000
 Income before income taxes 829,000 3,505,000
 Income tax provision 1,495,000 2,187,000
 Net income (loss) $ (666,000) $ 1,318,000
 Net income (loss) per share of
 common stock $ (0.06) $ 0.13
 Weighted average of common
 shares outstanding 10,622,501 10,450,000
 GAMING:
 Revenues $ 13,844,000 $ 7,848,000
 Operating loss $ (3,306,000) $ (1,940,000)
 WULFF:
 Revenues $ 27,406,000 $ 28,806,000
 Operating income $ 4,710,000 $ 5,681,000
 -0- 2/26/93
 /CONTACT: Gary J. Simpson, senior vice president, of Bally Gaming International, 702-896-7700/
 (BGII)


CO: Bally Gaming International Inc. ST: Nevada IN: CNO SU: ERN

SW -- NYON1 -- 0724 02/26/93 08:56 EST
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Date:Feb 26, 1993
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