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GameTech enters credit facility25 August 2008RENO, Nevada –- (PRESS RELEASE) -- GameTech International, Inc. ("GameTech(R)") (Nasdaq: GMTC), a leading designer, developer and marketer of electronic bingo and gaming equipment, systems, and video lottery terminals, announced today it has entered in to a $40 million syndicated credit facility with U.S. Bank N. A., as Agent and Participating Lender, and Bank of the West, as the other Participating Lender. The credit facility is being used by GameTech to refinance existing corporate debt, purchase an existing 100,000 square foot facility in southwest Reno, Nevada, to construct additional improvements to the facility to enable it for use as GameTech's new Corporate Headquarters, and provide a credit line that may be used for general corporate purposes. On the topic of the debt refinancing, President and CEO Jay Meilstrup states, "Our decision to change lenders has both community and financial benefits. We are excited about building a relationship with two well established financial institutions that have a major presence within Northern Nevada and the gaming industry. Their expertise and advice in this transaction enabled us to structure a deal that not only provides the funds to purchase the real property and construct the improvements for our new Corporate Headquarters, but also enabled us to refinance our existing debt and end up with an all-in effective rate that is over 3-percentage points less than the current cost of our existing debt with Ableco Finance LLC." "Owning our Corporate Headquarters, which will provide approximately 30,000 square feet of office space and over 70,000 square feet of manufacturing/warehouse space, is another step in implementing our strategy to expand the VLT and slot machine business segments for GameTech. It will also increase our capacity to house bingo equipment, thus being able to respond quickly to the growing needs of our domestic and international customers", stated Mr. Meilstrup. Additional information about the facility purchase and financing will be contained in GameTech's Form 8-K to be filed with the SEC. |