Butler National reports update

18 September 2007

ATHE, Kansas -- (PRESS RELEASE) -- Butler National Corporation (OTC Bulletin Board: BUKS) a recognized provider of professional management services in the gaming industry, announces activities related to the Kansas Expanded Lottery Act.

On April 19, 2007, the State of Kansas enacted the Kansas Expanded Lottery Act. This law authorized state-owned gaming in Kansas within four designated gaming zones. These gaming zones are Northeast, Southeast, South Central and Southwest Kansas.

We have invested approximately $400,000 in the past five months related to the development of possible investments in Kansas Owned Gaming Facilities. These expenditures include contracts to purchase land, options to purchase land, civil engineering services, architect services, market studies, financial feasibility studies, legal services, administrative expenses associated with filing an application, and administrative services in some of the designated Kansas Gaming Zones.

We expect to file an application with the State of Kansas to be approved as the manager for one gaming zone. We also expect to make some potential investments related to the other approved gaming zones.

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