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Multimedia Games Acquires Sigma Game Assets

AUSTIN, Texas -- (PRESS RELEASE) -- Multimedia Games, Inc. (Nasdaq: MGAM) announced today that it recently acquired certain assets of Sigma Game Inc. ("Sigma"), in an all-cash transaction for an undisclosed amount. Sigma is a privately-held Las Vegas designer, developer, manufacturer and distributor of, among other products, mechanical reel slot and video gaming machines.

Pursuant to the purchase, MegaBingo, Inc., a wholly-owned subsidiary of Multimedia Games ("Multimedia"), acquired substantially all of Sigma's intellectual property, including patents, trademarks and game themes, as well as at least 350 gaming machines (to be completed to Multimedia's specifications), and the related fabrication molds and tooling equipment. Multimedia plans to deploy these gaming machines in Class III tribal and commercial casinos in various jurisdictions. Subject to regulatory approvals, Multimedia also secured the right to acquire the corporate stock of Sigma, which holds gaming licenses in many domestic gaming jurisdictions, including Nevada and New Jersey.

Clifton E. Lind, Multimedia's President and CEO, commented, "The acquisition of these assets is consistent with our strategy to expand our portfolio of intellectual property, and further diversify into new markets. Sigma has a number of intellectual property patents that we believe will complement our existing technology, and help us to further diversify our sources of revenue as we target Native American Class III and the traditional commercial casino gaming market opportunities. Furthermore, we expect that Sigma's experience operating in a number of markets that we previously have not addressed, its existing revenue-generating license agreements, and its history of creating niche products for other gaming equipment suppliers will support our goals of entering new domestic gaming jurisdictions.

"In addition, we expect that Sigma's popular video poker games will be well received by our customers in applicable markets, including those Oklahoma customers that choose to sign compacts with the state, thereby allowing them offer skill games in their gaming facilities as defined in the legislation. Our ability to offer these titles further broadens the portfolio of compacted games we plan to introduce in this market later this year."

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