MGAM News:
newsalert.com
TULSA, Okla.--(BUSINESS WIRE)--March 5, 1997--Multimedia Games, Inc. (NASDAQ:
MGAM) announced today plans to launch a new low-cost version of its popular interactive bingo
game, MegaMania(TM).
The new version of the game will cost ten cents per card rather than twenty-five cents per card.
The total prize payout odds will improve slightly, but the average jackpot prize, which is presently won
about twice per day, will be about $7,000. The maximum prize is expected to be about $22,000. All
other prizes will be reduced by a factor of 60 percent as compared to the $.25 version of the game.
MegaMania(TM) sales have increased by 62 percent in the past 60 days. Gordon Sjodin, MGAM
executive vice president, said, "We have increased the number of halls playing MegaMania(TM) in the
past quarter by 33 percent. However, recent market studies indicate that only about 15 percent of the
hard-core bingo players can afford to play the present game, and as a result we expect a much higher
percentage of new players will play the ten cent version."
The company also announced it has submitted another ten games to the National Indian Gaming
Commission for approval. These games incorporate changes being made to the MegaMania(TM) game
in response to suggestions made by the National Indian Gaming Commission (NIGC). Larry
Montgomery, MGAM president said, "The changes to MegaMania(TM) are expected to eliminate any
question that our high speed interactive video games meet all requirements to be classified as bingo
games, as defined by the Indian Gaming Regulatory Act, (IGRA). It also appears, based upon market
tests, that these changes will increase player appeal. We do not think it will take long to make these
changes. However, until they are made we have suspended the production of additional
MegaMania(TM) electronic player station units."
These comments should be considered a "forward-looking statement" within the meaning of Federal and
state securities laws as to the company's expectations for the increase of player appeal. Such statement
is subject to a number of uncertainties that could cause the actual results to differ materially from those
expected, including but not limited to, those described under "Item 1. Description of Business - Risk
Factors" contained in the Company's Annual Report on Form 10-KSB for the fiscal year ended
September 30, 1996, which are incorporated herein by this reference.
Multimedia Games, Inc. through its wholly owned subsidiary, MegaBingo, Inc. has exclusive contracts
with over 50 Indian nations to provide linked games that are integrated among multiple halls. Multimedia
Games, Inc. is the nation's leading provider of linked high-stakes bingo games, electronic based
interactive bingo games and associated data processing services and products to the Indian gaming
industry.
CONTACT: Multimedia Games, Inc.
Gordon Graves or Fred Roll, 800/726-2464
REPEATS: New York 212-752-9600 or 800-221-2462; Boston 617-236-4266 or
800-225-2030; SF 415-986-4422 or 800-227-0845; LA 310-820-9473
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