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GPIC Reports Loan for Expansion

LAS VEGAS, Nevada – (PRESS RELEASE) -- Gaming Partners International Corporation (Nasdaq: GPIC) today reported that its French subsidiary, GPI SAS, has closed a euro 1.5 million (approximately $1.92 million) working-capital loan to finance production expansion. The five-year, fixed-rate note payable in quarterly installments was obtained from GPIC's bank in France at a favorable 3.4 percent interest rate per annum with the maintenance of a minimum balance of euro 0.5 million. The loan is secured by the company's marketable securities on deposit at the bank, the balance of which is presently in excess of several million Euros.

The company, a leading manufacturer and supplier of casino table game equipment under the Paulson, Bud Jones and Bourgogne et Grasset brands said the loan proceeds are being used for purchasing additional manufacturing equipment to meet sharply increased demand for the company's RFID-embedded gaming chips. Gaming Partners previously announced that it has received substantial orders for its RFID products from several new casinos in Macau, including the Wynn and Galaxy Star World properties. At that time, Gaming Partners also disclosed that it would procure additional equipment to expand manufacturing capacity.

"Based on year-to-date sales and signed orders anticipated to be delivered in 2006, revenues from RFID gaming chips already are expected to exceed $16 million -- an increase of approximately 3.5 times over last year," said Gerard P. Charlier, the company's president and chief executive officer. "This working capital loan, acquired at such a low interest rate, enables our GPI SAS business unit to finance additional equipment -- and more, if necessary -- without compromising the company's short-term cash-flow, which can remain available for other future operational purposes."

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