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Alliance Gaming Releases Business Update

LAS VEGAS – (PRESS RELEASE) -- Alliance Gaming Corp. (NYSE: AGI) today announced it will reschedule the date of its fourth quarter and year end earnings release from the previously scheduled date of August 9th. The Company anticipates the call to be held the week ending August 26th, 2005. The postponement will enable the Company and its auditors to complete all required year end accounting and auditing requirements. The Company will hold a conference call at the previously scheduled time to provide additional information and to provide a general business update.

Business update

Although the results for the Company's fourth quarter and year end are not yet finalized, the Company can provide the following preliminary results for the quarter ended June 30, 2005:

* Alpha based games sold or on trial in traditional markets totaled approximately 1,900, which is at the higher end of the range of previous management guidance. The Alpha game library continues to grow, and today stands at between 15 and 20 games approved in most major jurisdictions, and is on target with management's announced plans for approximately 30 titles by calendar year end. However, in general, our trends for the sale of games in the domestic markets continue to be at a level below that of the prior two years.

* Revenues from the Bally Systems division will likely be sequentially higher, which is at the higher end of management's expectations.

* Gaming operations revenues continue to show sequential growth driven by additional placements of daily fee games.

Fiscal year 2006 guidance

The Company has completed its fiscal year 2006 planning process and, given the current economic and market conditions and expected new product release dates, is providing guidance for its fiscal year ending June 30, 2006 of diluted adjusted EPS of approximately $.30 to $.50. This guidance does not include the expensing of stock options. The Company expects to increase operating expenses modestly during fiscal year 2006 to further its product offerings, geographic expansion and customer support initiatives. It should also be noted that due to the timing of the G2E industry trade show in September and the expected timing of additional product approvals, earnings are expected to be stronger later in fiscal year 2006. The Company cautions that this guidance is subject to change based on a variety of factors, including but not limited to the general gaming equipment purchasing patterns which have slowed following the influx of TITO games over the last two years, lack of new jurisdiction and property openings, competitive product offerings and the successful delivery of Alpha based game content.

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