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GPIC reports results

For the third quarter of 2007, the Company reported revenues of $15.2 million compared to revenues of $20.1 million for the third quarter of 2006. Gross profit for the quarter was $4.8 million, or 32% of revenues, compared to $5.6 million or 28% of revenues in the same period a year ago. The decline in revenue was a result of lower sales of chips to casinos in Macau.

Net income for the third quarter was $387,000, or $0.05 per basic and diluted share, compared to $919,000, or $0.12 per basic and $0.11 per diluted share, in the three months ended September 30, 2006.

For the nine months ended September 30, 2007, revenues were $38.9 million compared to revenues of $57.9 million in the first nine months of 2006. Gross profit for the period was $11.0 million, or 28% of revenues, compared to $20.0 million, or 35% of revenues in the comparable period in 2006. The decline in revenues was due to fewer chip sales to casinos in Macau.

Net loss for the nine months ended September 30, 2007 was $662,000, or $0.08 per basic and diluted share, compared to net income of $5.0 million, or $0.63 per basic and $0.62 per diluted share, for the nine months ended September 30, 2006.

As of September 30, 2007, the Company had cash and marketable securities of $8.4 million compared to $10.6 million on December 31, 2006.

As of September 30, 2007, our backlog of unfilled orders, which are expected to be filled in 2007, amounted to approximately $5.5 million for GPI USA and $9.0 million for GPI SAS. As of September 30, 2006, backlog was approximately $4.2 million for GPI USA and $7.4 million for GPI SAS.

Commenting on the results, Gerard Charlier, President and CEO said, "While results from the third quarter have improved from the first half of the year, we are still disappointed in the numbers. Our sales to Macau are down significantly from last year, which was an exceptional year. We are pleased that this year we participated in the openings of the Crown Macau and the Venetian Macau and the Wynn Macau's expansion. Based on our backlog, I believe our fourth quarter will be our best quarter of 2007.

"Longer term, we remain optimistic about the future based on our expectations for the potential in the market for RFID gaming chips worldwide, including our exclusive rights to manufacture and sell RFID gaming chips in the United States."

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