Multimedia Games releases market update

Installed Base / Product Mix Update:

The table below sets forth Multimedia's end-of-period, installed player terminal base by product line or market for the months ended September 30, 2007, August 31, 2007 and September 30, 2006.

                            Total             Mexico
           Reel             Class  Oklahoma  Electronic
  Month     Time  Legacy &   II &  Compact     Bingo    Charity Total
   Ended    Bingo  Other(1)  Other Units(2)    Units     Units   Units
---------- ------ --------- ------ -------- ----------- ------- ------
 9/30/2007  3,840       550  4,390    4,088       2,515   2,569 13,562
 8/31/2007  4,147       546  4,693    4,185       2,681   2,569 14,128
 9/30/2006  7,280       373  7,653    2,408         600   2,519 13,180

(1) Includes 166 traditional electronic bingo games installed in certain international markets.

(2) "Oklahoma Compact Units" represents installations of games pursuant to the approved gaming compact between Native American tribes, racetracks and the State of Oklahoma, including Multimedia's and other vendors' stand-alone games.

Multimedia had 764 Reel Time Bingo units installed at two tribal facilities in California as of September 30, 2007 compared to 1,026 and 1,875 Reel Time Bingo units installed at these facilities as of August 31, 2007 and September 30, 2006, respectively. The Company expects additional removals of its Reel Time Bingo units from the California market during the remainder of calendar 2007.

The Company had units installed at nine locations in Mexico as of September 30, and August 31, 2007 and at four locations as of September 30, 2006. The monthly sequential decline in Mexico Electronic Bingo Units reflects the planned removal of certain Multimedia units to facilitate the placement of another vendor's units at four locations. Pursuant to its agreement with the operator of the facilities in Mexico, Multimedia retains at least 70% of the total placements at each of the nine locations in Mexico opened to date, and Multimedia will provide at least 70% of the units in all future establishments opened by its customer. A tenth location with 216 of Multimedia's electronic bingo units opened last week in Cancun (these units are not included in the table above).

In addition, Multimedia recently entered into an agreement with a second license holder in Mexico, pursuant to which the Company will place at least 1,000 units at this new customer's facilities over the next 12 months.

Oklahoma Market:

Consistent with its goal of optimizing net gaming revenue, the Company continues its strategic transition of its Oklahoma linked, standard sequence bingo games and server-based compact games installed base to one-touch, stand-alone offerings. Recently, the Company began placing its proprietary stand-alone units at Oklahoma tribal gaming facilities. The table below breaks out by product line Multimedia's end-of-period, Oklahoma installed player terminal base for the months ended September 30, 2007, August 31, 2007 and September 30, 2006.

                                       Other      Total
             Total Class Stand-Alone  Compact    Compact
Month Ended    II Units     Units     Units(1)     Units   Total Units
-----------  ----------- ----------- ---------- ---------- -----------
  9/30/2007        2,017       3,848        240      4,088       6,105
  8/31/2007        2,062       3,860        325      4,185       6,247
  9/30/2006        4,205         849      1,559      2,408       6,613

(1) "Other Compact Units" represents server-based games.

Multimedia also reported that it has committed an additional $9.4 million towards the expansion of a key customer's facility in southern Oklahoma. The new commitment increases Multimedia's total funding of the project from $56.3 million to approximately $65.6 million, or from 37.5% to 43.7% of the anticipated total project budget. In return, the Company will now receive an additional 5% of the anticipated floor placements at the expanded facility, resulting in an aggregate of 1,400 unit placements, or approximately 35%, of the total 4,000 unit expansion, which is scheduled to come on line beginning in the second calendar quarter of 2008. To date, Multimedia has advanced approximately $27 million towards the expansion. Multimedia expects to be repaid the entire amount of the funds advanced for the facility expansion directly by the tribal customer. Repayments will be paid from the facility's operating profits and are expected to commence when the expanded facility opens.

New York Video Lottery Market:

In the New York Lottery market, Multimedia provides the central determinant system for video lottery terminals ("VLTs") at racetracks in the state, for which it receives 0.75% of the net gaming win for all units installed on the system. As of September 30, 2007, there were approximately 13,100 VLTs installed at racetracks in the state, consistent with levels at August 31, 2007. By comparison, there were approximately 9,500 VLTs installed at racetracks in the state as of September 30, 2006,

Bank Credit Facility:

The outstanding balance as of September 30, 2007 of the Company's $150 million bank credit facility was approximately $82 million compared with $72 million at August 31, 2007.