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Alliance Gaming Extends Agreement With Multimedia Games

19 September 2001

LAS VEGAS, Nevada –(Press Release) --Sept. 19, 2001-- Alliance Gaming Corp. (Nasdaq: ALLY) announced today that it has extended its licensing agreement with Multimedia Games Inc. (Nasdaq: MGAM) to include both the distribution of additional devices from Alliance's Bally Gamingand Systems unit into new markets and the supplying of creative content for Multimedia's Class II games.

Under terms of the original agreement signed in April 2001, MGAM secured distribution rights for Bally Gaming products in the Washington tribal casino market, with Bally Gaming receiving a royalty and a guarantee that MGAM will purchase a minimum number of products from Bally Gaming over a 36-month period.

The extension of the agreement gives Multimedia access to Bally Gaming's catalog of game themes for use in Class II bingo games. In addition, Bally Gaming will continue to provide gaming machine cabinets and hardware that Multimedia will outfit with its system components to create a finished gaming device.

``We have already been capitalizing on the compatible technologies our companies share and we are pleased this extension of our agreement with Multimedia will take Bally games into new markets,'' said Paul Lofgren, Senior Vice President and General Manager of the Bally Gaming unit. ``Multimedia enjoys longstanding relationships with Native American casino interests throughout the country and Bally stands to gain from this foundational legacy that Multimedia has created.''

``The Bally machines and game themes are already very popular with players,'' said Gordon Graves, MGAM's CEO and Chairman of the Board. ``With this agreement, the Company will now be able to choose from a library of thousands of games. Use of Bally's player stations also enables MGAM to quickly fill large orders in the rapidly expanding Native American market.''

``Bally equipment and game themes are recognized throughout the world,'' said Gary Loebig, MGAM's Executive Vice President of Sales and Marketing. ``We believe Bally-themed games will add to the players' overall gaming experience and satisfaction in Native American gaming halls.''

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