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American Wagering Reports Strong Year End Results

Revenue: Revenues for the year ended January 31, 2002 were $12,000,615; this is a decrease of $1,774 or (0.02%), from the year ended January 31, 2001. The decrease is primarily attributed to wagering operations as the events of September 11, 2001 caused the professional football championship game to be postponed from the fourth quarter of the 2002 fiscal year to the first quarter of the 2003 fiscal year; it is anticipated this factor will have a positive impact on the operating results for the next quarter and fiscal year. The decrease in wagering operations was offset by an increase in system operations attributed to the sale of new systems and the T-3 point-of-sale device.

Operating Costs and Expenses: Operating costs and expenses for the year ended January 31, 2002 were $11,255,788; this is a decrease of ($1,067,107), or (8.7%), from the year ended January 31, 2001. The decrease in operating costs and expenses is a result of the Company's numerous cost-cutting efforts and its continuing efforts to focus on its core competencies and businesses.

Operating Income: Operating income for the year ended January 31, 2002 was $744,827; this is an increase of $1,065,333, or 332%, from the year ended January 31, 2001. The increase in operating income is due to the decreases in operating costs and expenses.

Other Income and Expenses: Other income and expenses for the year ended January 31, 2002 resulted in a net expense of ($94,988) primarily from interest payments on long term debt. For the year ended January 31, 2001, other income and expenses resulted in a net income of $955,474 primarily from one-time litigation judgments and settlements.

Income Tax Benefit: For the year ended January 31, 2002, the Company recorded a net gain of $264,815 from an income tax benefit resulting from prior years' operations. For the year ending January 31, 2001, the Company did not have any income tax benefit.

Discontinued Operations: During the year ended January 31, 2001, the Company recorded a net loss of ($170,939) from discontinued operations. During the year ended January 31, 2002, the Company did not have any discontinued operations.

Commenting on the results, Victor Salerno, CEO/COO and Chairman of the Board of American Wagering said, "The past 18 months have seen quite a bit of change for American Wagering. The Company made a commitment to focus on our core businesses of sports wagering and equipment sales/service. As a result of this and the dedication of our staff, the Company was able to significantly reduce its expenses and return to profitability. The overall performance of the Company during the past 18 months has validated our business plan and bodes well for the future."

American Wagering, Inc. owns and operates a number of subsidiaries including:

Leroy's Horse and Sports Place: Leroy's owns and operates 41 sports books licensed by the Nevada Gaming Commission, giving it the largest number of books in the state.

Computerized Bookmaking Systems: CBS is the dominant supplier of computerized sports wagering systems in the state of Nevada and is the creator of Mega$ports, a pari-mutuel sports system.

AWI Keno: AWI Keno is licensed by the Nevada Gaming Commission as an operator of an inter-casino linked keno game. AWI Keno operations are currently on hiatus pending reformatting of the game.

Secured Telephone Operating Platform: STOP is the creator and operator of a system designed to ensure that telephone calls for account wagering originate from within the state of Nevada. STOP currently has three sports book operations utilizing the system.

Mega$ports (ACT): Mega$ports (ACT) operates a sports book on the Internet and via telephone from its headquarters in Canberra, ACT, Australia.

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