Class Action Suit Filed Against Mikohn Gaming

5 December 2005

NEW YORK -- (PRESS RELEASE) -- The law firm of Milberg Weiss Bershad & Schulman LLP announces that a class action lawsuit was filed on November 28, 2005, on behalf of purchasers of the securities of Mikohn Gaming Corporation (d/b/a Progressive Gaming International Corporation)("PGIC" or the "Company") (NasdaqNM: PGIC) between February 22, 2005 through October 19, 2005, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act").

If you bought the securities of PGIC between February 22, 2005 and October 19, 2005 and sustained damages, you may, no later than January 31, 2006, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Milberg Weiss Bershad & Schulman LLP, or other counsel of your choice, to serve as your counsel in this action.

The action, numbered 05-CV-01410, is pending in the United States District Court for the District of Nevada against PGIC, Russel H. McMeekin (CEO) and Michael A. Sicuro (CFO) A copy of the complaint filed in this action is available from the Court or can be viewed on Milberg Weiss's website.

The complaint alleges that PGIC is a supplier of Integrated Casino Management Systems software and games for the gaming industry. The complaint further alleges that defendants issued quarter after quarter of strong financial results, and issued strong forecasts for future quarters. For example, for the third quarter of 2005, Defendants assured investors that PGIC would report earnings per share of between $0.08 and $0.10. This strong growth projection was crucial to enable Defendants to close on a highly-anticipated strategic acquisition of a related gaming company, VirtGame Corporation, which acquisition was scheduled to close in the second quarter of 2005, and to complete a secondary offering of common stock announced on August 31, 2005.

The Complaint alleges that defendants knew that VirtGame shareholders would vote on the acquisition in September 2005. As a result, they knew it was vital to the closing of the acquisition to keep the stock price artificially inflated and to avoid the disclosure of any adverse information during this time. Therefore, Defendants engaged in accounting fraud by failing to comply with Generally Accepted Accounting Principles ("GAAP"). In particular, Defendants failed to disclose the impact of the Financial Accounting Standards Board's Accounting Standard ("SFAS") 153 which applies to exchanges of non-monetary assets. Despite the fact that SFAS 153 was issued in December 2004, and took effect in June 2005, Defendants failed to include any discussion of the impact of its application in PGIC's public filings.

On October 20, 2005, Defendants shocked the market by revealing that because the Company failed to properly account for two non-monetary transactions in accordance with SFAS 153, the Company expected to report a loss of $.09 a share rather than a gain of $.08-$.10, as Defendants had previously represented. According to Defendants, the accounting treatment had to be changed after the national office of the Company's auditor, BDO Seidman, informed the Company that it had to comply with SFAS 153 and could not recognize the revenues in the third quarter from these two transactions. In response to this shocking news, the price of PGIC stock plunged by nearly 30% on unusually large trading volumes of over 6.6 million shares traded.