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BGI Reports Record Revenue and Earnings for Q3 2001

15 November 2001

AUSTIN, Texas--(Press Release)--Nov. 15, 2001--BGI, Inc. (OTCBB:BGII) today announced record results for the third quarter ended September 30, 2001.

The Company's operations experienced significant revenue growth. Total revenues in the third quarter were $1,482,380 -- an increase of 103% over revenues of $729,155 in the second quarter of fiscal 2001, and an increase of 126% over last year's third quarter revenues of $656,157. Overall revenues for the full fiscal year are expected to increase by approximately 60% in 2001 over total revenues of $3,002,238 in fiscal 2000.

Consistent with management's ongoing focus on cost control, gross margins in the quarter increased to 91.7% of revenues, as compared to 82.1% in Q2. As a result, BGI recorded third quarter net earnings of $758,724 ($0.08 per share(1)) -- a 328% increase over second quarter net earnings of $177,313 ($0.02 per share), and a remarkable improvement over the loss of $194,818 ($0.02 per share loss) in the third quarter of fiscal 2000. The Company expects to maintain positive net earnings in the fourth quarter.

``Our third quarter results are a clear validation that our board and management team have returned BGI to strong profitability,'' said Mr. Reid Funderburk, Chairman and CEO of BGI, Inc. ``Through our focused restructuring efforts and a renewed emphasis on disciplined cost control, our business was profitable in the quarter. We are particularly pleased to have more than doubled our revenues from the previous quarter. With positive cash flow and a leaner, more cost-efficient organization, BGI's profitability has been firmly restored. As a result, the Company is now better positioned to execute its strategies to enhance shareholder value.''

``Over the coming months, we will focus on achieving our stated objectives to expand our installation base, increase customer satisfaction and further strengthen our balance sheet,'' said Mr. Funderburk. ``With the ongoing placement of new Charity Stations in Texas and the recently announced launch of this product in the state of Wyoming, we have entered the fourth quarter with substantial demand and strong sales prospects. We are committed to continued expansion, and the result of this commitment will be further underscored by our fourth quarter growth figures.''

At September 30, 2001, current assets totaled $369,135, which included $256,610 in cash. Current liabilities were $725,586, and long-term liabilities totaled $65,250. The basic number of shares outstanding at September 30th was 9.69 million; the diluted number of shares outstanding was 11.04 million.

Continuing the trend established in Q2, the third quarter was a period of demonstrated market expansion for the Company. BGI's operations gained strength with new Charity Station installations and significant distribution across core markets in Texas. Financial results for the third quarter do not reflect BGI's recently announced expansion into the state of Wyoming.

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