DEQ, Paltronics sign deal

15 May 2007

LAS VEGAS, Nevada -- (PRESS RELEASE) -- DEQ Systems Corp. (TSXV: DEQ), a worldwide provider of gaming technology products and Paltronics Inc., a world-leading manufacturer of centralized casino gaming system solutions and display technology today announced that they have entered into a strategic alliance.

Paltronics will license DEQ's table game bonusing patent portfolio and incorporate DEQ's patented and exclusive bonusing features into its One Link(R) table game bonusing systems.

Under terms of this alliance Paltronics will make an up-front payment of US $500,000 to guarantee the first year's royalties to DEQ. A royalty schedule for three years has been agreed upon for current Paltronics' product replacement and new product rollout that includes any or all of DEQ's patented and exclusive bonusing features.

DEQ's cutting edge table game bonusing features include multiple credit betting and denomination flexibility, side bet bonusing games with progressive and random jackpot prizes, mystery bonusing, electronic credit bank, electronic rake and baccarat tracking and scoring as well as multimedia animation and sound effects.

Paltronics will combine selected DEQ features with its One Link Table Systems and its One Link Media systems(R), augmenting its table offerings by adding a wide range of additional benefits to its centralized One Link(R) system.

"DEQ's bonusing and wagering patents are revolutionary as evidenced by the blue chip industry operators that have adopted them. These patents create new incremental revenue for the casinos, offer fresh approaches to table games and more exciting ways to play, said Angelo Palmisano, president and chief executive officer of Paltronics, Inc. "With table games on the rise and an increasingly international client base, this is the ideal time for Paltronics to enter into an alliance with a company of DEQ's caliber. DEQ's patent portfolio is a perfect compliment to our jackpot and media system product line," he added.

Earle G. Hall, president and chief executive officer of DEQ stated, "Paltronics and DEQ share a similar philosophy and that makes us ideal business partners. By leveraging our combined strengths, we will deliver a state-of-the-art bonusing solution with media and management features unlike any the industry has seen to date. We are very proud to welcome this former competitor as our leading business partner in our quest to bring the slot machine bonusing philosophy to the table game segment of the market."


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