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GPIC reports results

For the fourth quarter of 2007, the Company reported revenues of $19.9 million compared to revenues of $16.1 million for the fourth quarter of 2006. Gross profit for the quarter was $7.0 million, or 35% of revenues, compared to $4.4 million or 27% of revenues in the same period a year ago. The increase in revenues was due in part to filling a large order for the opening of the MGM Macau.

Net income for the fourth quarter was $903,000, or $0.11 per basic and diluted share, compared to $115,000 or $0.01 per basic and diluted share in the fourth quarter 2006.

For the year ended December 31, 2007, revenues were $58.8 million compared to revenues of $74.0 million in the year ended December 31, 2006. Gross profit for the year was $18.0 million, or 31% of revenues, compared to $24.4 million, or 33% of revenues in 2006. The decline in revenues was due to fewer chip sales to casinos in Macau, although our significant market share of the chip, plaque, and jeton sales in this region remained stable.

Net income for the year ended December 31, 2007 was $240,000, or $0.03 per basic and diluted share compared to net income of $5.1 million or $0.64 per basic and $0.62 per diluted share for the year ended December 31, 2006.

As of December 31, 2007, the Company had cash and marketable securities of $9.4 million, compared to $10.6 million on December 31, 2006.

As of December 31, 2007, our backlog of unfilled orders, which are expected to be filled in 2008, amounted to approximately $11.1 million. At December 31, 2006, our backlog was $5.5 million.

Commenting on the results, Gerard Charlier, President and CEO, said, "Our fourth quarter was our best quarter of the year in terms of both revenue and profit and allowed us to rise just above breakeven for the entire year. Our results in terms of both revenue and profit fell far behind last year. In particular, our sales to casinos in Macau are down significantly from 2006, which was an exceptional year. We are pleased that this year we participated in the openings of the Crown Macau, the Venetian Macau, and MGM Macau, and the Wynn Macau's expansion.

"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. We are particularly excited about our collaboration with Progressive Gaming International Corporation and International Game Technology in winning an order for over one million Paulson 13.56 MHz RFID casino chips to be delivered to MGM Grand at Foxwoods, the new expansion of the Foxwoods Resort Casino, for its opening in mid-May 2008."

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