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Spectre Gaming Completes Sale of Shares

EL CAJON, California – (PRESS RELEASE) -- Spectre Gaming, Inc. (OTC Bulletin Board: SGMG) announced today that it has completed the sale of $7,420,000 of its Series B Convertible Preferred Stock. The private placement was subscribed to by institutional investors and high net worth individuals. The Series B Convertible Preferred Stock is convertible into common stock of the Company based upon $1.60 per common share. The Company also issued the Series B investors 5-year warrants to purchase 4,637,500 additional shares of common stock at a price of $1.84 per share. Merriman Curhan Ford & Co. acted as the sole manager on the transaction.

"This offering represents a major step toward improving our balance sheet, achieving our growth objectives and strengthening our capital base," stated Russell Mix, Chief Executive Officer. "This transaction helps us to aggressively pursue our Amusement-With-Prize ("AWP") business. Within the past three weeks we have announced contracts expected to generate a minimum of 500 installations of the games, and now we can expand our reach even faster."

Mix continued, "We are pleased with the attention and support Spectre received from a variety of new institutional investors in this private placement. We have added a number of strong and well-respected investors as Spectre shareholders which we believe will improve our visibility in the investment community."

In May of 2005, the Company entered into an exclusive multi-year license agreement with Alliance Gaming Corporation (NYSE: AGI), through its Bally Gaming and Systems business unit, that grants certain rights to proprietary software as well as, subject to ongoing conditions, Bally game titles developed by Bally that the Company intends to deliver to the AWP marketplace. The market for AWP is legal in some form in at least 45 states with an estimated 300,000 machines already in operation. The Company believes that it will deliver compelling products to this underserved marketplace.

The shares sold in the private placement have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The Company has agreed to file a registration statement covering the shares and the shares underlying the warrants within 30 days. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities.

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