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GameTech Reports Q3 Results

RENO, Nevada – (PRESS RELEASE) -- GameTech International, Inc. (Nasdaq: GMTC), a leading designer, developer and marketer of electronic bingo equipment and bingo systems, today announced financial results for the Company's third fiscal quarter and nine month period ended July 31, 2006. Net income totaled $1.3 million for the quarter, or $0.10 per fully diluted share, a significant improvement over net income of $85,000 and $0.01 per fully diluted share for the third quarter of fiscal 2005. Year to date net income for fiscal 2006 reached $3.3 million, or $0.26 per fully diluted share, compared with $389,000, or $0.03 per fully diluted share for the comparable nine month period in 2005.

Third quarter net revenue totaled $12.4 million which approximated the comparable quarter during fiscal 2005 and net revenue for the nine month period ended July 31, 2006 was $37.3 million, slightly below the $37.5 million in the comparable period in fiscal 2005. Company revenue continued to increase in key domestic and international markets, offset by some reductions in accounts and pricing. Total operating expenses decreased significantly for both the three and nine month periods.

On August 30, 2006, GameTech announced that it had entered into an agreement to acquire the business of Summit Amusement & Distributing, Ltd. for $37 million in cash and a contingent payment of up to $2 million in cash if Summit's business achieves certain profitability goals for 2006. Summit is a leading developer and manufacturer of entertainment driven gaming devices, including primarily video lottery terminal equipment and related software. Additional information about the acquisition can be found in GameTech's Form 8-K filed August 30, 2006.

Jay Meilstrup, GameTech's President and Chief Executive Officer stated, "GameTech has continued to show increasing profitability and earnings per share for each of our quarters this year as well as on a year to date basis. We have continued to increase our core business in states such as Michigan, Kentucky, Nevada, New York and other domestic and international markets and we will continue to focus on our customer base and market share. We believe new product initiatives and international market expansion will start to be realized in the fourth quarter. We are excited about the growth opportunities presented by the Summit acquisition, and we will continue to pursue strategic opportunities when they arise."

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