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To: ROSARIO who wrote (70)	4/23/1998 6:03:00 PM
From: tgs59	Read Replies (1) of 400

Rosario, I appreciate you jumping over to ask your question. I hope you will invite others from the AGTI thread to come read what I have to post on this thread. Trend Gaming Systems, the GMTC distributor, and GMTC began placing units here in Texas beginning in August, 1996. All of our initial installations were placed with a 30% participation lease. However we are like the computer industry, in that as production increases we move the price down. We have had several price decreases since those initial installations. (30% - 27% - 25%). With each decrease, we have increased our revenue through increased unit placements. The price our customers pay depends on the length of their contract term. At present our customers that commit to a multi-year term can benefit from a 20% lease rate. Those that commit to a one year term pay a higher lease rate. As the market leader we have and intend to be proactive in our markets, as opposed to reactive. We have received multi-year commitments from the vast majority of our current customer base and have just landed significant new commitments from new halls. Some of these halls did not have any type of electronic bingo, though most of these are replacing a competitor with our equipment. Over the next month we expect many new commitments. Our goal is to expand the market and we are extremely confident of our ability to accomplish this task. During 1997, Trend had approximately 55% of the market here in Texas. We intend to significantly improve over that mark during 1998. Trend has been able to accomplish a major marketing effort, but this would not be possible without the quality of product and customer service dedication of GMTC. GMTC is unique in its ability to provide continuing product and customer service development. We are now submitting our new product release for approval in Texas. This product raises the bar for all others to be measured against. Current customers and prospective customers simply want to know when we will be able to install this new product release in their facility. 1. State of the art product 2. Unparalleled customer support and service 3. Aggressive and competitive pricing This adds up to increased revenue and market share. This will of course be obvious as we continue through the year. I should point out that as we have done our previous price reductions, during 1997, we have seen quick spurts of revenue growth. Someone seems to have given you erroneous information as to reducing revenues by 33% in one fell swoop. As I have stated we have been making incremental reductions to our customers over the 20 months we have had units placed in Texas. This is also the norm throughout the country. I do not know of any Native American facility that even starts out at 30%, given the number of sessions they play and the player pricing involved. The FortuNet units is the most competitive product line out of all of the various competitors. AGTI has been approved for a couple of months and simply is not a factor here in Texas. Of course why would they be a factor here when they haven't been able to compete in the markets outside of TX. I will be posting on a regular basis to give updates on our progress here in TX. I would be most pleased to assist those interested in the bingo industry as they analyze potential investments. While I am extremely pro GMTC, I will give you references for any information that I provide. I look forward to lively discussion. tgs59 (tgs1@flash.net)

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