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Anchor Gaming Completes Purchase of 4.6 Million Shares

17 October 2000

LAS VEGAS, Nevada – (Press Release) --Oct. 17, 2000 -- Anchor Gaming (Nasdaq: SLOT) today announced that it has completed the acquisition of 4,596,200 shares of stock owned by its Chairman Stanley Fulton and members of his family for a purchase price of $66.60 per share.

The purchase consideration consisted of $240 million in cash and $66 million of promissory notes that Stanley Fulton received for a portion of the shares he sold. Members of the Fulton family have retained ownership of approximately 539,600 shares after this transaction.

Additionally, Stanley Fulton and his son, Michael Fulton, and his daughter, Elizabeth Jones, have resigned their positions on Anchor Gaming's Board of Directors. T.J. Matthews, Anchor's Chief Executive Officer and President, has been appointed Chairman of the Board of Directors. Also named to the Board of Directors was Joe Murphy, Anchor's Chief Operating Officer-Gaming Operations.

The Company today also completed the sale of $250 million of 9.875% senior subordinated notes due October 2008 that were priced to yield 10.000%. Proceeds from the sale of the notes were used principally to fund the stock purchase transaction.

The senior subordinated notes have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. Additionally, the Company announced that it has amended its existing $300 million senior credit facility to increase the maximum borrowings, subject to certain covenants, to $325 million, subject to certain regulatory approvals.

As previously announced, the Company agreed to sell Stanley Fulton substantially all of the assets relating to its Sunland Park Racetrack & Casino, located in New Mexico, and its 25% interest in a Massachusetts horse racing facility. Stanley Fulton has agreed to pay $66 million for such assets by canceling the Company's obligations under the promissory notes. The Company now expects to complete the sale of the racetrack assets by the end of November 2000, subject to regulatory approval.

Anchor Gaming is a diversified gaming technology company with operations around the world. It operates in three complimentary business segments: gaming machines, gaming operations, and gaming systems.

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