PDS Gaming Merger Plan Approved

UNITED STATES – (PRESS RELEASE) -- PDS Gaming Corporation (Nasdaq:PDSG), a company that finances, leases and remarkets gaming equipment to the casino industry, announced yesterday that its shareholders have voted, at a special shareholders meeting held in the afternoon, to approve the Agreement and Plan of Merger by and among the Company, PDS Holding Co ., Inc. ("PDSH") and PDS Acquisition Sub, LLC relating to the Company's previously announced "going private" transaction. The Agreement and Plan of Merger and the underlying transaction are described in the Company's August 24, 2004 definitive Proxy Statement as filed with the Securities and Exchange Commission ("SEC").

Consummation of the "going private" transaction is subject to the satisfaction of a number of conditions, including, without limitation, the receipt of all necessary consents from third parties, the approval of such transaction by gaming regulatory agencies and the receipt by PDSH of the necessary financing.

PDS Gaming Corporation is headquartered in Las Vegas, Nevada and provides customized finance and leasing solutions to the casino industry in the United States.