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GameTech Reports Mixed Results

RENO, Nevada – (PRESS RELEASE) -- GameTech International, Inc. (Nasdaq: GMTC), a leading supplier of electronic bingo equipment, today announced financial results for the Company's third fiscal quarter and the nine-month period ended July 31, 2004. Revenues for the quarter were $12.9 million, an increase of $140,000 over revenues for the third quarter of 2003. Net income for the quarter was approximately $33,000, or less than $0.01 per diluted share, down $219,000 from the prior year's third quarter net income of $252,000, or $0.02 per diluted share. For the nine-months ended July 31, 2004, revenues were $38.9 million compared to $39.3 million for the comparable period of fiscal 2003. Net income for the nine-months ended July 31, 2004 amounted to $76,000, or $0.01 per diluted share, compared to $999,000, or $0.08 per diluted share for the comparable period of 2003.

According to Clarence Thiesen, chief executive officer, the Company's revenue has not reached anticipated levels due to delays in the installation of the Company's new Traveler(TM) terminal. "We have been simultaneously encouraged by the outstanding reception of this new innovation in the marketplace and disappointed by the slower than expected rollout of the Traveler(TM) terminal," Thiesen said. "We are concentrating our efforts on accelerating this rollout of the Traveler(TM) terminal and other new products and services while continuing our aggressive R&D efforts which have been the focus for the Company. We expect that future product releases will drive improvements in operating results."

Thiesen emphasized that products and services introduced to the market in addition to the Traveler(TM) terminal are also receiving positive customer reception. "Customer response to the Company's new products and services has been positive. New products include Pay-N-Play(TM), the fast-action, credit-based pari-mutuel like bingo system as well as the latest version of the Company's bingo management system, AllTrak(TM). We also anticipate strong response to Bingo Enhanced Tabs System(TM), the Class II pull-tab game engine that can be played on the GameTech bingo unit before, during and after bingo sessions, which is currently in beta testing," said Thiesen. "The succession of new and improved products and services over the past year has been the result of our emphasis on better serving our customers by anticipating their needs through investment in R&D."

The Company's third quarter operating expenses increased by $290,000, or approximately 2 percent over the comparable quarter in 2003. R&D costs continued to increase and depreciation grew resulting from purchase of new product for installation in customer locations. Although legal costs decreased over the comparable quarter in 2003, the Company expects legal costs to increase in the fourth quarter due to the scheduled trials of two lawsuits aimed at protecting the Company's market share and intellectual property rights.

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