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BGI Inc. Settles Rio Grande City Matter

1 November 2002

AUSTIN, Texas--(Press Release)-- BGI Inc. (OTCBB:BGII) today announced that it has settled its ongoing disputes regarding its business activities in Rio Grande City, Texas, with the District Attorney's Office of Starr County.

In June 2002, the Rio Grande City Police Department seized 33 of the Company's Charity Station machines.

Under the terms of the settlement agreement the Company agreed to pay $27,200 for the release of the machines and agreed to remove the machines from Starr County. This settlement does not admit guilt, fraud or any wrongdoing on the part of BGI.

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