Progressive Gaming, DEQ Systems Sign Deal

LEVIS, Quebec – (PRESS RELEASE) -- Progressive Gaming(NASDAQ:PGIC) and DEQ(TSX VENTURE:DEQ.V) announced a joint cross licensing agreement aligning their table game side betting and jackpots strategies. This non-exclusive agreement grants DEQ a global license to sell their G3 table system for multiple side bets, variable pay tables and jackpots in the U.S. and several other countries where Progressive Gaming's patents are recognized.

Russ McMeekin, Progressive Gaming's CEO and President stated: "We are pleased to be expanding our relationship with DEQ and anticipate that this agreement will be rewarding for both companies. DEQ and their products have been well respected globally and we anticipate that they will continue to thrive. The G3 table system's ability to offer multiple side bets and variable pay tables has been a proven success and we look forward to bringing this technology to our customer base."

Earle G. Hall, DEQ's CEO stated: "Our vision for the G3 table system is to become the world standard for electronic side betting. The Progressive Gaming patents give us the possibility to reach this goal as we now have the capacity to integrate our technology using their patents on any approved table game in the world."

This agreement will give DEQ the right to manufacture the G3 table system in a progressive jackpot configuration in Canada for shipping worldwide. In those jurisdictions where DEQ has not or does not intend to distribute side betting systems, Progressive Gaming may choose to distribute the G3 product for DEQ on a non exclusive basis. DEQ shall also have the right to sublicense the acquired PGIC rights licensed to existing and future distributors of DEQ's technology and to other table game content companies. This agreement will take effect on September 1st 2006.