Shuffle Master, Progressive Gaming
sign deal
Press Release

Shuffle Master Inc. (NASDAQ Global Select Market:SHFL) ("Shuffle Master") and Progressive Gaming International Corporation (NASDAQ:PGIC) ("Progressive") jointly announced today that they have entered into a non-binding letter of intent, which contains an exclusivity period, for the sale of Progressive's worldwide Table Game division assets to Shuffle Master. The transaction, which is expected to close on or before August 31, 2007, is contingent upon the completion, during the exclusivity period, of a definitive agreement, final due diligence and other customary closing conditions.

Upon completion of the transaction, Shuffle Master, the world's leading provider of specialty table games, would own the worldwide rights and contracts for all of Progressive's proprietary table game titles including Caribbean Stud® and Texas Hold 'Em® Bonus Poker.

In addition, the companies are expected to negotiate a technology license whereby Shuffle Master will integrate Progressive's Casinolink® Jackpot System's™ ("CJS") progressive jackpot system module for use with certain versions of Shuffle Master's progressive proprietary table games. The CJS module generates jackpot awards and heightened player awareness and play levels in the same manner as slot machine progressive systems.

Dr. Mark Yoseloff, Chairman and Chief Executive Officer of Shuffle Master commented, "We are doubly excited by the opportunity presented by this transaction. Firstly, we are pleased to potentially bring Caribbean Stud and the other Progressive titles into the Shuffle Master family. Secondly, the technology initiative represented by this agreement would provide us with a state-of-the-art system with which we can offer exciting progressive jackpots on certain of our already popular proprietary table games."

Russel McMeekin, President and Chief Executive Officer of Progressive Gaming International Corporation, commented, "We believe the sale of our Table Game division and the related integration of Progressive's Casinolink® Jackpot System™ ("CJS") module with Shuffle Master's progressive versions of its proprietary table games, would bring excellent near and long-term financial value to Progressive. The sale of our table game assets to Shuffle Master would place our flagship brands in the hands of the premier worldwide supplier of proprietary table games which we believe will ensure the continued growth of these assets on a global basis. Accordingly, the current and potential growth of the combined installed base of specialty table games is expected to create a meaningful opportunity for placement of our CJS module for table games on a global basis, which would create another long-recurring revenue benefit to Progressive. Upon closing this transaction, Progressive will have successfully transitioned itself to a company with a sole focus on providing advanced systems for the gaming industry with a business model based on recurring revenue that is well positioned to benefit from a streamlined cost structure."