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Bally Gaming and Systems Platform Approved

31 January 2006

LAS VEGAS – (PRESS RELEASE) -- Bally Gaming and Systems, a business unit of Alliance Gaming Corp. (NYSE: AGI), announced today that its newly introduced five-reel mechanical S9000 slot machine has been approved for sale by the Michigan Gaming Control Board and Gaming Laboratories International (GLI). Additionally, the S9000 has been approved by the Nevada Gaming Control Board for a required regulatory field trial at Wynn Las Vegas. Placements of units in Michigan and Nevada began over the past 30 days.

The ALPHA OS(TM), patents pending, driving these approvals is the first operating system in the gaming industry to support both video and mechanical reel-spinning platforms. ALPHA OS distinguishes itself from other industry platforms as an operating system designed for complete separation between the underlying OS and the game applications, providing enhanced efficiency in game development and speed to market. Moreover, ALPHA OS was designed to support server-based gaming initiatives, including download of game results, configuration and game content.

Alliance Gaming CEO Richard Haddrill said, "These approvals allow our Company to enter a new market segment on the casino floor and represents another important milestone in our emerging product plan. The significant investment made in ALPHA OS over the past two years is reflective of our overall increase in R&D to enhance our product offerings. We now have three major products -- M9000, CineVision(TM) and S9000 -- utilizing the ALPHA OS platform with more to come. We are very pleased with the initial customer response to these new products."

Robert Luciano, Chief Technology Officer, added, "Sierra Design Group (SDG) began the development of the ALPHA OS platform in 1998 as a specialized product for applications in server-based markets that were not supported by the primary technology suppliers such as IGT, WMS Gaming and Aristocrat. The platform requirements for server-based markets such as Oklahoma, Washington, Florida, California and Austria are distinct from traditional Class III markets. Now, the requirements of the traditional markets are transforming to similar server-based requirements, which ALPHA OS has supported for many years."

The first commercial operation of ALPHA OS-based products was in Florida in 2002, followed by Washington state and other server-based markets. For these markets, game content licensed from IGT, WMS and other manufacturers was first distributed by SDG utilizing ALPHA OS. Prior to the acquisition of SDG by Bally in March 2004, WMS licensed ALPHA OS from SDG as its operating system for its video platform following an exhaustive competitive selection process. In support of this effort, SDG spent considerable development resources to extend ALPHA OS functionality to satisfy the requirements of traditional gaming markets.

Luciano added, "After completing our contracted work for WMS in mid-2004, Bally vastly expanded the ALPHA OS capability. With hundreds of man years invested in development, ALPHA OS now stands as the best platform in the gaming industry."

The S9000 was first unveiled to customers at G2E in September 2005 and was named "Best Slot Product" by a prestigious panel of judges in the 3rd Annual Global Gaming Business Gaming & Technology Awards. Required regulatory submissions of the S9000 have been made to additional markets such as New Jersey and Mississippi.

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