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BGI Settles Laredo Matter

31 October 2002

AUSTIN, Texas--(Press Release)-- BGI Inc. (OTCBB:BGII) today announced that it has settled its ongoing disputes regarding its business activities in Laredo, Texas, with the District Attorney's Office of Webb County.

In January 2002, the Laredo Police Department seized 72 of the Company's Charity Station machines.

Under the terms of the settlement agreement the Company agreed to pay $57,600 for the release of the machines and agreed to remove the machines from the State of Texas. This settlement does not admit guilt, fraud or any wrongdoing on the part of BGI.

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