Multimedia Games to Supply Player Tracking System to Batavia Downs; Ma

    Business Editors

    AUSTIN, Texas--(BUSINESS WIRE)--March 23, 2005--Multimedia Games, Inc. (Nasdaq: MGAM) announced today that it has been selected by Western Regional Off-Track Betting Corp., the parent company of Batavia Downs, to provide Players Passport(TM), the Company's proprietary player tracking system, for use in conjunction with Batavia Downs' video lottery terminal operations. As part of the agreement, Multimedia Games ("Multimedia") will also supply Batavia Downs with self-service redemption kiosks. The agreement will result in Multimedia's first deployment of its player tracking system and redemption kiosks in a New York video lottery facility. Batavia Downs selected Multimedia's product following a competitive procurement process involving other casino management system providers.
    Clifton E. Lind, Multimedia's President and CEO commented, "Our selection to provide the player tracking system to Batavia Downs reflects both our product's capabilities and our ability to provide dynamic and flexible solutions that meet the needs of individual operators. Since our first deployment of the product just over two years ago, Players Passport, a component of our MGAMe(TM) casino management system, has proven to be a robust and feature-rich player tracking system offering operators a cost-effective alternative to traditional casino management products. With the Batavia contract, our player tracking product has been chosen by sixteen facilities, including fourteen tribal gaming facilities, in a relatively short time, which has served to further diversify our sources of revenue. We are confident that the Batavia Downs installation will further prove the value of this product in the growing video lottery market and in other non-tribal markets."
    "Our selection of Multimedia's Players Passport system will allow us to create a players club program that fits the needs of our facility and enhances the entertainment experience for our customers," said Michael Kane, Vice President Administration of Western Off-Track Betting Corp. "We are looking forward to working with Multimedia Games in two capacities - as the supplier of our player tracking system and redemption kiosk and as the supplier of the central system for our video lottery operations."
    Batavia Downs is a harness racing track, in western New York State that has previously been approved by the New York Lottery to operate video lottery terminals. The track currently expects to begin its video lottery operations in late April or early May with approximately 580 units. Multimedia was previously selected to provide the central system for New York State's video lottery terminal operations for the eight approved race tracks. Currently, there are approximately 5,070 video gaming machines in operation at four race tracks in the state.

    About the Company

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

    Forward-Looking Statements

    This press release contains forward-looking statements about Multimedia 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. Examples of such forward-looking statements include those regarding (a) Multimedia's supplying of the player tracking system and redemption kiosk and their robustness and cost-effectiveness; (b) Multimedia's product's capabilities and value and Multimedia's ability to provide dynamic and flexible solutions; (c) the ability of Western Regional Off-Track Betting Corp. to create a players club program with Multimedia's products that fit the needs of its facility and enhance the entertainment experience for customers; (d) Multimedia's supplying of its central system and other technology to serve its customers needs. Future events involve risks and uncertainties that may cause actual results to differ materially from those currently anticipated. Such risks and uncertainties include, but are not limited to: (i) the risk that Multimedia's technology, which is relatively new and continually evolving, is unable to serve the needs of its video-lottery and other customers, or to scale and expand as anticipated; (ii) the risk that Multimedia's ability to deliver under the agreement may be adversely affected by regulatory developments, technological hurdles, competitive pressures, or other factors that could result in Multimedia's games and terminals not being placed into operation or not performing as anticipated; (iii) the risk that the video lottery and other markets do not materialize or grow as anticipated, or that Multimedia's business may not develop as anticipated therein; (iv) the risks resulting from the difficulty of successfully and cost-effectively entering new markets, particularly markets in which Multimedia has not previously operated; (v) the risk associated with the difficulty of developing and introducing to new and existing markets new and enhanced game content and systems that will be widely accepted both by customers and end users; (vi) the risk of continuing legal and regulatory activities and enforcement actions related thereto; (vii) the risks that competitive pressure creates on Multimedia's business; (viii) the risks of technological or system failures or disruptions, or the inability of Multimedia's technology or systems to scale and expand, including risks associated with the difficulty of installing and maintaining terminals and systems at existing or new facilities; and (ix) the risks associated with creating the organization and expertise necessary to deploy and maintain new games and systems. Other important risks and uncertainties that may affect Multimedia's business are detailed from time to time in the "Certain Risks" and "Risk Factors" sections and elsewhere in Multimedia's filings with the Securities and Exchange Commission. Multimedia undertakes no obligation to update information in this filing except as required by law.

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CONTACT: Multimedia Games, Inc. Clifton Lind, 512-334-7500 or Jaffoni & Collins Incorporated Joseph N. Jaffoni or Richard Land, 212-835-8500 mgam@jcir.com

KEYWORD: TEXAS NEW YORK INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS ELECTRONIC GAMES/MULTIMEDIA GAMING MARKETING AGREEMENTS SOURCE: Multimedia Games, Inc.

Copyright Business Wire 2005