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Saratoga Gaming and Raceway VLTS Activated

RENO, Nevada -- (Press Release)--Feb 4, 2004 -- On January 28, 355 video gaming machines from Sierra Design Group (SDG), a premiere electronic gaming development company, were activated at Saratoga Gaming and Raceway in Saratoga Springs, New York. This is the first site to become active in the New York Lottery's network of racetrack gaming sites. SDG increases its VLT installation base with the Saratoga Gaming and Raceway opening, building on SDG's technical leadership and experience in the Washington market where SDG holds over 75% market share.

"SDG congratulates Saratoga Gaming and Raceway on the opening of its new gaming operation. SDG's distinction as the leader in the Washington market has enabled us to deliver excellence in games, systems and service to this newly emerging New York VLT market," said Donne Grable, Vice President of VLT Operations at SDG.

In 2002, SDG was awarded the largest share of games in a competitive bid with the New York Lottery. Saratoga Gaming and Raceway operates 355 games from SDG's extensive VLT game library that includes its own game titles, as well as those from other leading gaming vendors. The games selected for Saratoga Gaming and Raceway include 41 different titles including player favorites like Aristocrat's Penguin Pays® and Enchanted Forest®, and SDG's New York Gold™, and 777 Jackpot™.

"We are excited to offer our patrons games from SDG. Our new state-of-the-art facility, coupled with top-earning games like these from SDG is sure to provide an exciting and entertaining venue for our patrons," noted Jamie Hartman, Gaming General Manager, Saratoga Gaming and Raceway.

SDG generates revenue through the sale of systems and gaming machines for video lottery markets, the Class II electronic bingo market, specialized products for traditional gaming markets (Raining Diamonds Game Series), and through its Casino Design Services group. SDG's gaming machine platform is, by design, a multi-manufacturer gaming product with an open architecture for widespread use in Class II, VLT and traditional markets. This gaming platform and system was the first to enable a truly integrated player tracking, progressive, and cashless operation on a single network with games from multiple manufacturers.

In November 2003, SDG entered into a definitive agreement whereby Alliance Gaming Corp. (NYSE:AGI) would acquire 100% of the stock of SDG. This acquisition is expected to be completed in early 2004.

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