Spectre Gaming reports results

15 November 2006

MINNEAPOLIS, Minnesota – (PRESS RELEASE) -- Spectre Gaming, Inc. (OTC Bulletin Board: SGMG) today announced financial results for the three and nine months ended September 30, 2006. Revenue from continuing operations was approximately $67,000 for the three and nine months ended September 30, 2006 compared to $0 for the three and nine months ended September 30, 2005. The increase in revenue from continuing operations was due to the Company beginning to install and generate revenue from its AWP machines in the third quarter of 2006.

Net loss attributable common shareholders was approximately $3,775,000, or ($0.27) per diluted share, compared to $2,813,000, or ($0.21) per diluted share for the three months ended September 30, 2006 and 2005, respectively. Net loss attributable common shareholders was approximately $10,221,000, or ($0.74) per diluted share compared to $5,923,000, or ($0.45) per diluted share for the three months ended September 30, 2006 and 2005, respectively. The losses for the periods represent primarily the lack of revenues to offset expenses the Company incurred to develop its AWP system, as well as losses associated with discontinued operations, financing costs and non-cash stock option expense recorded in accordance with Statement of Financial Accounting Standards No.123R in 2006.

"We are pleased with the substantial progress the Company has made in executing on its business plan," stated D. Bradly Olah, Spectre's Chief Executive Officer. "The third quarter of 2006 represented a milestone for the Company as it began its first commercial installations of its amusement-with- prize ('AWP') games and began to generate its first revenue since exiting the Class II and Class III markets in 2005. Demand continues to be strong for our AWP games. As mentioned, installations of our games began in the third quarter with our largest installation going live on September 26, 2006. To date, we have installed approximately 850 devices and continue to move at a pace we believe to be unmatched by any competitors in the AWP market. Our skill games continue to do well in Florida, which is beginning the busy season, as all the 'snowbirds' return to their winter vacation homes. Revenue for the first six weeks of the current quarter already exceeds revenue for the entire third quarter by 280%. Our relationship with the Disabled American Veterans ('DAV') continues to grow as we now have two DAV chapter locations operating with our machines and are in discussions regarding opening additional chapter locations in the very near future. The DAV has and continues to be a very good working partner with leadership very enthusiastic about our future. We have now begun operating in the Texas market with early indications that this market could potentially be one of the largest in the country. We have over 500 machines scheduled for implementation over the next 45 days, including approximately 100 currently operating, 260 installed and ready to go live and an additional 217 with one of our Texas partners awaiting placement.

"With the most recently announced introduction of 'Titan,' Spectre's unique and proprietary platform, we now have the vehicle in place to continue to deliver what we believe to be the most advanced and robust technology in the marketplace. We believe this will give Spectre the advantage of producing and implementing a cost-effective hardware solution better suited for the AWP market than what is currently available.

"Management remains confident that Spectre is the leader in the underserved AWP market and will continue to expand as we stay on course with our aggressive installation plan over the coming years. In addition, the Company will continue to pursue opportunities and has received inquiries for its products in other jurisdictions, both domestically and internationally."