Progressive Gaming International Bolsters Table Management Solutions

21 December 2004

LAS VEGAS -- (PRESS RELEASE) -- Progressive Gaming International (the Company) (Nasdaq:MIKN), a leading provider of diversified products and services used in the gaming industry worldwide, announced today that it entered into two agreements that expand its existing table management system and related patent portfolio.

The Company has signed a definitive agreement to acquire the table game management system, PitTrak, including its existing customer base from Hotel Systems Pty. Ltd. of Sydney, Australia. In addition, the Company has acquired from Otho Hill, a leading gaming innovator, the exclusive rights to five additional patents adding to its existing portfolio of over 15 patents in 12 countries related to the development and distribution of an image-based recognition (IBR) card recognition shoe.

Acquisition of PitTrak

The PitTrak acquisition is for an undisclosed amount of cash and is expected to close during the first quarter of fiscal 2005. PitTrak has virtually the same functionality as TableLink® and will provide the Company with an existing installed base of over 400 tables and access to sell its table management solutions worldwide.

Managing Director and Vice President of the Company's International Division, Neil Crossan stated: "PitTrak is an excellent product with a strong reputation in the international markets. This strategic acquisition provides us the ability to expand the footprint of our table management systems to every casino in the world, especially in rapidly growing territories such as Macau. Key PitTrak development and support personnel are expected to join the Company's team in similar capacities."

IBR Card Recognition Shoe Patents

The additions to the Company's patent portfolio for an IBR card recognition shoe provides the Company with the exclusive rights to novel methods and systems for monitoring cards when dealt and processing card data to evaluate and track game play. The IBR shoe is expected to combine optical scan technology and signal processing capability to provide for monitoring of cards that have been dealt to the patron and for cards that remain in the shoe.

The scope of these patents is believed to extend to systems and software for aiding the dealer or casino in tracking play through card monitoring, deck penetration, card control and betting/card monitoring to aid in player tracking compensation. In addition, these patents cover systems for casino security by monitoring player betting behavior, game statistics and proficiency in relation to dealt cards. These systems are intended to increase casino revenue, reduce fraud and provide improved game play tracking and monitoring data to improve casino operation and game presentation.

President and Chief Executive Officer Russ McMeekin stated: "The completion of these key initiatives is expected to increase our installed base to over 1,400 tables under management and strengthens our patent portfolio for table management systems. We believe the combination of a growing installed base, a solid patent portfolio, a great suite of products and a terrific distribution network provides us with the right ingredients to meet the demands of our customers and the market leverage to support our goal of achieving 10,000 tables under management worldwide over the next five years."

Financial Summary

Chief Financial Officer Michael A. Sicuro stated: "These transactions are a part of several corporate development initiatives that are intended to replace the lower margin revenues from the realignment of the sign business with higher margin, recurring revenues from technology-based products. We expect the PitTrak acquisition to be neutral to mildly accretive in 2005 and very accretive in 2006 and beyond. We expect to fund this acquisition primarily though cash generated from operations."