GameTech reports Q3 results

RENO, Nevada -- (PRESS RELEASE) -- GameTech International, Inc. (Nasdaq: GMTC), a leading designer, developer and marketer of computerized bingo and gaming equipment, systems, and services, today announced financial results for the Company's third fiscal quarter and nine-month period ended July 31, 2007. Net income totaled $1.1 million for the quarter, or $0.08 per fully diluted share, which is down from $1.3 million and $0.10 per fully diluted share for the third quarter in fiscal 2006. Results for the quarter were impacted by a significant increase in interest expense related to the Summit acquisition as well as related amortization expense. Year-to-date net income for fiscal 2007 reached $3.4 million, or $0.26 per fully diluted share, compared with $3.3 million or $0.26 per fully diluted share for the comparable nine-month period in 2006.

Company Highlights:

-- Net income for the third quarter of fiscal 2007 was $1.1 million, compared with $1.3 million for the same period in fiscal 2006; net income for the first nine months of fiscal 2007 was $3.4 million compared with $3.3 million in the same period in fiscal 2006, an increase of 0.3%.

-- Net income per fully diluted share reached $0.08 for the third quarter and $0.26 for nine months, compared with $0.10 and $0.26 for the same periods in fiscal 2006.

-- Revenue for the third quarter of fiscal 2007 was $16.6 million compared with $12.4 million for the same period in fiscal 2006. Revenue for the first nine months of fiscal 2007 was $42.1 million compared with $37.3 million for the same period in fiscal 2006.

-- EBITDA for the third quarter of fiscal 2007 was $5.6 million compared with $4.7 million for the same period in fiscal 2006. EBITDA for the first nine months of fiscal 2007 was $14.6 million compared with $13.0 million for the same period in fiscal 2006.

-- During the quarter, Donald Tateishi was named Chief Financial Officer and Nick Greenwood was named VP of Sales and Product Marketing.

Third quarter revenue totaled $16.6 million compared with $12.4 million for the comparable quarter during fiscal 2006. Revenue for the nine-month period ended July 31, 2007, was $42.1 million compared with $37.3 million for the comparable period in fiscal 2006. The increase in revenue for the three and nine-month periods ended July 31, 2007 was primarily due to a full quarter of results from the acquisition of Summit Amusement & Distributing, LTD., a manufacturer of video lottery terminals. While bingo revenue was impacted by the loss of certain accounts in the domestic market, they were offset in part by increases in the Michigan, Louisiana, Oklahoma, and the United Kingdom markets.

Jay Meilstrup, GameTech's President and Chief Executive Officer stated, "The third quarter saw continued revenue growth in some of the larger domestic bingo markets, as well as in the United Kingdom. Helping to offset erosion in some of the more mature domestic bingo markets will be continued expansion into new domestic and international markets, such as the recently announced contract with MECCA Bingo in the United Kingdom which represented the single largest contract in GameTech's history. Our Summit division's results for the quarter were impacted by delays in the Louisiana market that did not allow the opportunity to realize the full potential of the market in the third quarter. We continue to look forward to capitalizing on the both near-term and long-term opportunities for our Summit division in both existing and new gaming markets. Additionally, GameTech continues to develop its technical capabilities in wireless to serve the newly developing wireless mobile gaming market. For the balance of the fiscal year and into 2008, we anticipate developing new business from the introduction of new products in both the bingo and video lottery terminal markets as well as pursuing strategic opportunities as they arise."