Multimedia Games secures order from Washington tribe

AUSTIN, Texas -- (PRESS RELEASE) -- Multimedia Games, Inc. (Nasdaq: MGAM) ("Multimedia") announced today that it has entered into a contract with the Spokane Tribe of Indians in Washington State for the sale of 600 of the Company's mGAME™ electronic player terminals, ancillary products and 600 game themes. In aggregate, the sales contract is valued at approximately $9.5 million not including recurring back office and related fees, and Multimedia expects to deliver the player terminals, game themes and associated hardware in its fiscal 2008 third quarter ending June 30, 2008. Multimedia expects to recognize the revenue from this order over the four year term of the contract. The player terminal contract was awarded following a competitive procurement process.

Clifton E. Lind, Multimedia's President and Chief Executive Officer, commented, "We are pleased and honored to be chosen by the Spokane Tribe to provide the products and services covered by this agreement. This is particularly true because one of our corporate priorities in fiscal 2008 is to capitalize on the sales opportunities in Washington State. With orders for 1,170 player terminals in the first half of the fiscal year, Multimedia is building on its existing strong market presence, and we believe we will achieve further success in this market with additional unit sales, system sales and service contracts during the remainder of fiscal 2008 and in fiscal 2009. With the availability of our mGAME cabinet line, Multimedia has the hardware, the game framework and the content to address this opportunity, and we are well positioned to realize new sales revenue as well as ongoing participation in a modest daily recurring revenue stream based on additional sales and placements."

As previously disclosed in November 2007, Multimedia entered into two contracts for the sale or refurbishment of player terminals and ancillary products in Washington State, one for 520 units and another for 50 player terminals, all of which have been installed. The Company recognized revenue of $714,000 on the sale of the 50 units in its fiscal 2008 first quarter ended December 31, 2007, and will recognize an additional $3.9 million in revenue related to the 520 units over the five year term of the contract.