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GameTech to Acquire Summit Amusement & Distributing, Ltd.

RENO, Nevada – (PRESS RELEASE) -- GameTech International, Inc. (Nasdaq: GMTC), a leading developer and manufacturer of electronic bingo equipment and bingo systems, announced today that it has entered into a definitive agreement with privately-held Summit Amusement & Distributing, Ltd. to acquire substantially all of the assets of Summit. The consideration for the assets consists of $37 million in cash payable at closing, and a contingent payment of up to $2 million if the acquired business achieves certain profitability goals for 2006.

Headquartered in Billings, Montana, Summit is a leading developer and manufacturer of entertainment driven gaming devices, including primarily video lottery terminal equipment and related software. Summit's primary markets currently include Montana, Louisiana, South Dakota, West Virginia and Native American casinos located in various areas in the United States. Summit has approximately 50 employees.

Jay Meilstrup, GameTech's President and Chief Executive Officer, commented, "We at GameTech are very pleased to announce this acquisition. We believe that Summit's business is highly complementary to GameTech's existing business, and that the acquisition will provide GameTech with the opportunity to significantly expand its product offerings and market presence. We are also very optimistic about the opportunities we believe exist to grow Summit's business."

Summit reported sales in 2005 of approximately $25 million and pre-tax income in 2005 of approximately $4 million.

The transaction is subject to a number of customary closing conditions. In addition, GameTech must obtain licenses to operate the acquired business and complete its contemplated financing for the acquisition, and under certain circumstances must pay Summit a $1 million termination fee if it is unable to obtain the required permits and financing. GameTech anticipates financing the acquisition with a $10 million revolving line of credit and a $30 million term loan. The transaction is expected to close in the first fiscal quarter of 2007.

GameTech International, Inc. is a leading developer and marketer of a comprehensive line of electronic bingo equipment, including hand-held bingo terminals, fixed-base terminals, and turnkey accounting and management software systems. GameTech supports its bingo operator customers with products that typically increase play, revenue and profits, and with software customized to enhance management and operations, all backed by unparalleled customer service and support.

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