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Alliance Gaming, Crown Gaming Sign Distributorship Agreement

29 August 2002

LAS VEGAS – (Press Release) -- Alliance Gaming Corp. (Nasdaq: ALLY) today announced that its Bally Gaming and Systems business unit has entered into a distributorship agreement with England-based Crown Gaming Limited that positions Bally Gaming to capitalize on the proposed expansion of gaming in the United Kingdom with one of the UK's largest suppliers of gaming and amusement machines.

Under terms of the multi-year agreement, Crown Gaming, a wholly owned subsidiary of Crown Leisure Limited, will be the exclusive distributor of Bally machines in the UK territories of England, Scotland, Wales, Northern Ireland and the Isle of Man.

While limited-payout slot machines are currently legal in the UK, it is widely expected that Las Vegas-style slot machines will eventually be legalized, including wide-area progressive games. An independent review board, chaired by Sir Alan Budd, issued a report in July 2001 recommending sweeping changes to existing gaming laws in the UK. A follow-up report by the Department of Culture, Media and Sport generally supported the Budd Report recommendations and it is expected that the Government and Parliament could enact new legislation as early as 2004, opening the door to expansive new casino development, especially in England.

"The UK is potentially an extremely strong growth market for us and we feel this agreement with Crown Gaming gives us a partnership that allows for the greatest possible penetration of Bally games," said Robert Miodunski, President and Chief Executive Officer of Alliance Gaming. "We already have a sales presence in England, but Crown has the additional relationships and the distribution channels we need to make an impact now in anticipation of the expected regulatory changes."

Based in Preston, England and established in 1976, Crown currently operates approximately 15,000 gaming and amusement devices throughout the UK, including operations in West London, Leeds, West Midlands, Bristol, Durham, Nottingham, Essex and Glasgow.

"We are very pleased to be the exclusive distributor of Bally products in the UK," said Paul Roden, Gaming Director for the Crown Leisure Group. "Clearly, the Bally name has a tremendous following in gaming jurisdictions throughout the world and we feel that both Crown and Bally will benefit greatly from our expertise in this market."

Alliance Gaming is a diversified gaming company with headquarters in Las Vegas. The company is engaged in the design, manufacture, distribution and operation of advanced gaming devices and systems worldwide, is the nation's largest gaming machine route operator, and operates two casinos.

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