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Alliance Gaming Coverage Initiated at 'Buy'

4 September 2001

LAS VEGAS – Sept. 4, 2001 --Brokerage firm Wells Fargo Van Kasper initiated coverage of Las Vegas-based Alliance Gaming Corp. Friday with a "buy" rating.

The firm's gaming analyst, David Barteld, set a 12-month price target of $25 for the stock, a 27 percent premium over current levels.

Barteld anticipates the company will report 37 percent growth in earnings per share in fiscal year 2002, and should continue earnings growth of more than 20 percent over the next several years.

"We believe that the stability of the (slot) route and casino operations' cash flow, combined with the growing recurring revenue base established by the growth of the revenue participation (slot) business, should provide investors with a more consistent and stable earnings base going forward," Barteld wrote.

Alliance's business lines include Bally Gaming & Systems, its slot machine manufacturing division; slot route operations in Nevada and Louisiana; casinos in Nevada and Mississippi; and Bally Wulff, which sells gaming machines in Germany.

Alliance stock rose 68 cents Friday to close at $19.71.

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