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GAMMA INTERNATIONAL EXPECTS FOURTH QUARTER LOSS

 BILLERICA, Mass., Jan. 18 /PRNewswire/ -- Gamma International, Ltd. (NASDAQ: GAMMA), today announced that it expects a fourth quarter loss of as much as $4.5 million consisting of an operating loss of approximately $2 million and up to an additional $2.5 million reflecting a planned restructuring of operations, the writedown of certain assets, and costs associated with uncompleted financing transactions. This compares with a loss in the third quarter of $1.7 million and a loss in the fourth quarter of 1991 of $1.4 million.
 The company also stated that there would be a net negative adjustment of approximately $1.3 million to stockholders' Equity resulting from an accounting reclassification of a fee paid to the Bennett Funding Group, Inc, in connection with the $50 million project financing and stock purchase agreement entered into on April 28, 1992. After the fourth quarter loss and this adjustment, Gamma will have Stockholders' Equity of approximately $7.5 million. The company is amending its previously filed quarterly reports for June 30, 1992 and Sept. 30, 1992 to reflect the reclassification and to supplement disclosures with respect to the fourth quarter loss.
 Richard Kidney, president, stated, "In announcing the anticipated loss, we are identifying costs and expenses associated with the planned restructuring which will be initiated early in 1993. We are also writing down certain assets and recognizing committed expenditures in areas where we do not now anticipate significant future revenues.
 "During the year ended Dec. 31, 1992, Gamma invested a good deal of time and money in identifying, analyzing and evaluating a wide range of business opportunities within the gaming industry. For those opportunities which we are investing in, there have been many additional expenditures for start up expenses, and accounting, legal and regulatory costs.
 "We are looking to 1993 as a year of considerable improvement with increased revenues as new projects commence operations and with careful control of expenses. We are also encouraged by recent developments in the regulatory environment of several states which will create a number of new opportunities for our existing products and services.
 Gamma's shares, warrants and units are traded on NASDAQ under the symbols GAMM, GAMMW and GAMMU, respectively.
 -0- 1/18/93
 /CONTACT: Richard D. Kidney, president of Gamma International, Ltd., 508-670-0794; or John Swanson of Swanson Communications, 212-683-4890, for Gamma International/
 (GAMMA)


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

TS-LR -- NY053 -- 5923 01/18/93 13:52 EST
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Publication:PR Newswire
Date:Jan 18, 1993
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