AUSTIN, Texas--(BUSINESS WIRE)--May 18, 1999--Bingo and Gaming
International Inc. (OTC BB:BING), an Austin-based distributor of
prepaid phone cards and machines that distribute its prepaid phone
cards, announced today record quarterly net income of $65,848 or
approximately 50% of the annual net income for all of 1998. Net income
for 1998 was reported at $126,646.
Net sales for the first quarter 1999 were equal to 32% of Bingo &
Gaming International's total annual sales for 1998. If sales and
profits continue along these lines, the company anticipates a record
year. The company is currently negotiating to pay off some high cost
debt with bank financing and profits from the first quarter.
"Our first quarter results represent a strong start for Bingo &
Gaming International for 1999," remarked Reid Funderburk, CEO. "We are
pleased with the operating gains that were recorded and are optimistic
about a continuation of this positive trend over the remainder of the
year. We see this as a good sign of what we hope will be a tremendous
year for our company.
Bingo & Gaming International sells, rents, operates and services
it Lucky Strike machines, which resemble Las Vegas-style video gaming
machines. The prepaid phone card vending machines employ a novel
marketing concept which permits consumers to enter a free promotional
sweepstakes offering cash prizes from $1 to $1,000 with every phone
card purchase.
The company's growth strategy includes selectively broadening the
geographic scope of its operations by entering new markets. Pending
legislation and distribution contracts may enable Bingo & Gaming
International to sell its machines in several more states this year
than it has done in the past. The company already has its machines
placed in Texas, Oklahoma, Arizona, Connecticut, Idaho and Illinois.
Most of the machines are located in charitable bingo halls and Indian
bingo facilities, but some are located in bars and bowling alleys.
The statements made by Bingo & Gaming International may be
forward-looking in nature. Actual results may differ materially from
those projected in forward-looking statements. Bingo & Gaming
International believes that its primary risk factors include, but are
not limited to: the need for substantial financial requirements; the
need to develop effective internal processes and systems; changes in
the overall economy; changes in technology; the number and size of
competitors in its markets; changes in the law and regulatory policy;
and the mix of product and services offered in the company's target
markets. Merger Communications (Merger) is a media relations firm
employed by the Company. The statements and opinions presented here
represent the views of the Company, not Merger, as the release is
based on the information provided by the Company. Merger and the
Company believe that all information in this release has been obtained
from sources considered reliable, but can not guarantee that the
statements presented herein are accurate or complete. Merger's
compensation for its media relations services, including preparation
of press releases, consists of a monthly retainer and restricted
stock. Merger may have a long position in the securities of the
companies in which it distributes information to the media, and Merger
may be buying or selling securities in the course of its regular
business.
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CONTACT: Merger Communications, Houston
David Drake, 713/267-2328
daviddrake@earthlink.net
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