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American Bingo Reports South Carolina Gaming Developments

14 June 2000

AUSTIN, Texas, June 13 (Press Release) -- American Bingo & Gaming Corporation (Nasdaq: BNGO - news), (to be renamed Littlefield Corporation and its trading symbol to become LTFD effective 15 June 2000) reports the following regulatory developments in regard to its South Carolina video gaming operations.

1. A lawsuit [Complaint for Declaratory and Injunctive Relief - Non-Jury] has been filed: Westside Quik Shop, Inc.; Phelix C Byrd, Ree M Byrd, and Winner's Pot of Gold Hot Spot, Inc. (Plaintiffs)


Robert M Stewart, Sr., in his official capacity as Chief of the State Law Enforcement Division; and, Charles M Condon, in his official capacity as Attorney General for the State of South Carolina (Defendants) in Greenville County, South Carolina [Court of Common Pleas, 13th Judicial Court, CA No. 2000-CVP-23-2987] that seeks to temporarily and permanently enjoin the State of South Carolina from taking any enforcement actions against the Plaintiffs as a result of the recent changes in video gaming legislation (Act 125).

The Plaintiffs are well represented in this lawsuit—generally referred to as a "takings" lawsuit—by local counsel, Hearn, Brittain & Martin, PA of Conway, South Carolina, and nationally recognized experts on takings legal issues, law firms: Winston & Strawn and Marzulla & Marzulla both of Washington, DC.

The granting of either a temporary or permanent injunction against the enforcement of the impending cessation of video gaming in South Carolina would effectively extend the life of the video poker industry in South Carolina.

It would not be unreasonable to expect that the State of South Carolina would expedite the review and disposition of this matter by the State of South Caroline Supreme Court and that subsequently plaintiffs would seek redress of their complaint in Federal Court.

The South Carolina Law Enforcement Division has notified all video gaming licensees in South Carolina of the following:

" ... On July 1, 2000, all video poker machines in operation and capable of being played will be seized and persons housing those machines on their premises will be subject to criminal charges carrying penalties of one (1) year or $500 or both."

" ... All video poker machines or parts thereof in South Carolina after midnight, July 8, 2000, will be seized and those persons housing machines on their premises will be subject to criminal charges carrying penalties of one (1) year of $500 or both."

American Bingo has taken all necessary steps to comply with the law and has obtained premises outside the State of South Carolina to which to transport its video gaming machines prior to 1 July 2000. Shipments have already been initiated for almost one half of the Company's machines. All transportation has been accomplished in accordance with all applicable laws including the Johnson Act.

In commenting on recent regulatory developments Jeffrey L Minch, the President of American Bingo offered the following:

"The legal challenge to the cessation of video gaming in South Carolina appears to be persuasive and compelling. In order to discharge its fiduciary obligations to its shareholders, American Bingo will support this effort if appropriate and should the chance present itself. The Company currently has taken no actions thus far. "In any event, we will comply with the laws of the State of South Carolina whatever they may be or become."

American Bingo will become Littlefield Corporation effective 15 June 2000 and its trading symbol, "BNGO", will become "LTFD" on the same date. Its bingo operations will become Littlefield Entertainment and its gaming operations will become Littlefield Gaming.

American Bingo is engaged in the development and operation of charitable bingo halls. Qualified charities are able to fund their worthy causes by offering consumers entertainment in the form of bingo games—subject to strict regulatory oversight—for which the charities pay rent to American Bingo for the use of the facility subject to long standing leases. American Bingo has relationships with over 60 such charities.

Charities playing in American Bingo halls received approximately $3,200,000 in 1999 to fund their noble causes.

American Bingo is the only public company attempting to strategically consolidate this $12,000,000,000 arcane, niche industry and is currently the largest public company operating charitable bingo halls in the United States. American Bingo operates twenty (20) bingo halls in Texas, Alabama and South Carolina and is currently developing two (2) new bingo halls in Alabama that will commence operations in 2000.

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