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GAMMA INTERNATIONAL ANNOUNCES FIRST QUARTER LOSS, COMPLETION OF EQUITY OFFERING AND INVESTMENT IN CRUISE SHIP

 BILLERICA, Mass., May 27 /PRNewswire/ -- Gamma International, Ltd. (NASDAQ: GAMM) today released a series of announcements including the reporting of the company's financial results for the first quarter of 1993, the completion of a previously reported equity offering to Mutual Investors Funding Corporation (MIFCO), and the purchase of an interest in a large cruise ship, the S.S. Aquarama, which the company intends to use for future gaming opportunities.
 Gamma reported a net loss for the first quarter of 1993 of $3.9 million compared to a loss of $1.0 million for the same period in 1992. The larger loss is attributed to non-cash charges of $2.9 million including a provision for a write-down of impaired assets ($1.7 million) and increased depreciation and amortization of acquired contracts ($1.2 million) both of which relate to the company's merger with Creative Games Technology, Inc.
 Gamma completed the Creative Games transaction in November 1992. As a result of developments that occurred during the first quarter and subsequent thereto, the company has determined that the recoverability of certain assets acquired from Creative Games is in doubt and, accordingly, has recorded a charge of $1.7 million for the quarter ending March 31, 1993 to reflect this uncertainty.
 On May 20, 1993, the company reached an agreement in principle with Creative Games to adjust the original merger agreement and to discontinue ongoing contractual relationships with the former shareholders. There may, in the future, be further significant adjustments including, upon finalization of this agreement in principle, a reduction in the purchase price and additional provisions related to the values of certain acquired assets due to the impact of ongoing negotiations with the customers of Creative Games.
 The company reported completion, on April 8, of the sale of a $15 million equity offering to Mutual Investors Funding Corporation. The company sold 6 million shares of common stock and 12,000 shares of non- convertible preferred stock having a purchase price of $9 million. Of the total $15 million investment made by MIFCO, approximately $12 million was used to retire indebtedness outstanding to the Bennett Funding Group, Inc. The private equity placement was arranged through Fidelity International Securities Corporation of New York City.
 Gamma also announced that it had entered into an agreement dated April 30, 1993 to purchase, for a price of $3 million, a 15 percent equity interest in Empire Cruise Lines, Ltd., a corporation established to acquire the S.S. Aquarama which the company believes is suitable for use as an entertainment and gaming ship. Under the Empire agreement, the company has agreed to use its best efforts to obtain financing of up to $75 million for equipping and refurbishing the vessel and in addition is entitled to act as the manager of casino operations. The location in which the cruise ship will be utilized has not, as yet, been determined.
 In making these announcements, Richard D. Kidney, chairman, stated, "The first quarter loss of $3.9 million, including non-cash charges of $2.9 million, reflects the company's assessment that it will have difficulty in realizing certain values associated with the Creative Games merger completed in late 1992. The agreement in principle reached with the Creative Games shareholders includes an adjustment of the original purchase price and it is possible that there will be additional charges in the second quarter of 1993 although the amount of those provisions will depend upon the outcome of negotiations with Creative Games customers in Minnesota. We are pleased to report finalization of the equity offering to Mutual Investors Funding Corporation which, together with the renegotiated Creative Games merger, means that the company will have no outstanding debt. We are also enthusiastic about the investment opportunities with the S.S. Aquarama and look forward to utilizing this vessel in a floating casino operation in one of a number of locations within the United States.
 Gamma's shares, warrants and units are traded on NASDAQ under the symbols GAMM, GAMMW and GAMMU, respectively.
 -0- 5/27/93
 /CONTACT: Richard D. Kidney, chairman of Gamma International, Ltd., 508-670-0794; or John Swanson of Swanson Communications, 212-683-4890, for Gamma International/
 (GAMM)


CO: Gamma International, Ltd. ST: Massachusetts IN: SU: ERN

WB-LR -- NY040 -- 2896 05/27/93 11:16 EDT
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Date:May 27, 1993
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