PokerTek reports results

MATTHEWS, North Carolina -- (PRESS RELEASE) -- PokerTek, Inc. (NASDAQ:PTEK) today announced financial results for the three and six months ended June 30, 2007. Net loss for the second quarter of fiscal 2007 was approximately $2,811,000, or ($0.27) per diluted share, compared with net loss of approximately $2,232,000, or ($0.24) per diluted share, in the second quarter of 2006. Net loss for the six months ended June 30, 2007 was approximately $5,438,000, or ($0.54) per diluted share, compared with net loss of approximately $3,823,000, or ($0.40) per diluted share, in the six months ended June 30, 2006.

Second Quarter Financial Results

Q2 and Current Highlights

• The company's gaming table count increased from 81 PokerPro tables at March 31, 2007 to 104 at June 30, 2007 to 135 today.
• The company announced the Heads-Up Challenge World Series of Poker Edition, its first amusement product, in June 2007 and formally unveiled the product at the World Series of Poker in early July 2007.
• The company completed a private placement of its common stock and convertible warrants to institutional investors in April 2007, resulting in net proceeds to the company of approximately $12.5 million.

Revenues from both license fees and equipment sales relating to the PokerPro(TM) system totaled approximately $916,000 during the three-month period ended June 30, 2007, up from $314,000 in the same period in 2006. Revenues consisted of: aggregate recurring license fees for the three-month period ended June 30, 2007 and the same period in 2006 of approximately $602,000 and $133,000, respectively, which represents a 353% increase; and the remainder from equipment sales to our international distributor, Aristocrat International Pty. Limited, for its use in demonstrations of the PokerPro(TM) system to international licensing bodies and potential customers.

The net loss increased to approximately $2,811,000 from approximately $2,232,000 in the same period in 2006, creating a net loss per common share, basic and diluted, of ($0.27) compared to ($0.24) for the second quarter of fiscal year 2006. The increases in the following factors were the primary components affecting the increased loss for the second quarter of 2007 as compared to the second quarter of 2006: employees' salaries and benefits; depreciation expense; fees related to compliance with licensing and regulatory requirements; expenses related to sales efforts; research and development related to our Heads-Up Challenge product; and legal and professional fees.

"PokerTek continues to make steady progress in our casino business. We have 135 tables installed as of today, up from 14 one year ago," stated Lou White, PokerTek's Chief Executive Officer. "We are also excited about entering the amusement business with the launch of our Heads-Up Challenge product, which we anticipate rolling out to bars and restaurants in the near future."

Year-to-Date Financial Results

Revenues from both license fees and equipment sales totaled approximately $1,507,000, up from approximately $787,000 in the same period in 2006. Revenues consisted of: aggregate recurring license fees for the six-month period ended June 30, 2007 and the same period in 2006 of approximately $1,110,000 and $493,000, respectively; and the remainder from equipment sales to our international distributor, Aristocrat International Pty. Limited, for its use in demonstrations of the PokerPro(TM) system to international licensing bodies and potential customers.

The net loss increased to approximately $5,438,000 from approximately $3,823,000 in the same period in 2006, creating a net loss per common share, basic and diluted, of ($0.54) compared to ($0.40) for the first six months of fiscal year 2006. The increases in the following factors were the primary components affecting the increased loss for the first six months of 2007 as compared to the same period of 2006: employees' salaries and benefits; depreciation expense; fees related to compliance with licensing and regulatory requirements; expenses related to sales efforts; and consulting fees related to product development. A decrease in interest income for the six-month period ended June 30, 2007 as compared to the same period in 2006 also contributed to the increased loss. At June 30, 2007, PokerTek had no debt and approximately $14.7 million in total cash and cash equivalents.

Conference Call