IGT, Action Game Wins Lawsuit

27 September 2004

LAS VEGAS – (PRESS RELEASE) -- Alliance Gaming Corp. (NYSE: AGI) announced that a Federal District Court jury reached a verdict in a patent infringement case filed by Action Gaming, Inc. and International Game Technology, Inc. ("plaintiffs"). The jury awarded the plaintiffs $7.361 million in damages related to a single, optional feature offered in certain multi-hand poker games provided solely by United Coin, a former subsidiary of the Company. The verdict was not against Bally Gaming and is therefore, not anticipated to impact any gaming machines or systems sold by Bally Gaming. Further, the verdict is subject to various post-trial motions after entry of judgment, which in turn is subject to appeal.

The Company will take a charge against its first quarter earnings for the amount of the judgment entered, which net of tax will adversely impact the Company's results by approximately $0.09 per share.

Alliance Gaming is a diversified gaming company with headquarters in Las Vegas. The Company is engaged in the design, manufacture, distribution and operation of advanced gaming devices and systems worldwide, operates a gaming machine route in Louisiana and operates Rainbow Casino in Vicksburg, Miss. Additional information about the Company can be found at www.alliancegaming.com.


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