Press Release

SOURCE: GameTech International, Inc.

GAMETECH REPORTS FINANCIAL RESULTS FOR THE FOURTH QUARTER AND FISCAL YEAR ENDED OCTOBER 31, 2001

RENO, Nev. (Dec. 21, 2001) – GameTech International, Inc. (Nasdaq-NM: GMTC), a leading supplier in the electronic bingo industry, today announced financial results for the fourth quarter and fiscal year ended October 31, 2001.

            Fourth quarter revenues were $11.8 million, compared with $12.0 million in the comparable prior fiscal year quarter. Revenues for fiscal 2001 amounted to $48.5 million, compared with $49.7 million for fiscal 2000.  A major contributing factor to the revenue decline was increased competitive pricing pressures in the market place.

            The company incurred a net loss for the three months ended October 31, 2001 of $4.0 million, equal to $0.37 per diluted share, compared with a net loss of $1.4 million, or $0.13 per diluted share, for the year ago fiscal quarter.  For fiscal year 2001, the net loss totaled $4.4 million, equal to $0.41 per diluted share, compared with net income of $3.7 million, or $0.30 per diluted share, in the previous fiscal year.

            Results for the fourth quarter and fiscal year were impacted by certain significant charges. These charges consisted of the write-off of excess inventory; accounts receivable write-offs and reserves; executive and employee retirements and separations; legal settlements; distributor issues; centralization of R&D personnel; higher unit refurbishment expenses; and other charges. A major portion of these charges, particularly in the fourth quarter, consisted of the write-off of excess inventory. The write-offs were taken on uninstalled, black and white portable handheld units as a result of excess supply in view of the increasing acceptance of color units in the marketplace and the full-scale  

introduction by the Company of the new TED ² C color portable handheld unit. In addition, the current fiscal periods also reflected increased depreciation due to a greater number of installed bingo units and a revised estimate of useful lives for uninstalled units, and higher unit  refurbishment expenses.

            Clarence Thiesen, who assumed the post of Chief Executive Officer on October 1, 2001, pointed out that, the Company’s cash and marketable securities increased by more than $5 million during the past fiscal year.  At October 31, 2001, cash and marketable securities amounted to $13.0 million, compared with $9.8 million at July 31, 2001 and $7.9 million one year earlier at October 31, 2000.  He emphasized that the Company’s cash flow is projected to remain strong in the upcoming year.    

            Thiesen continued:  “GameTech has gone through a time consuming and costly transition during which we have worked hard to address past problems and build a solid foundation for the future.  As a result, our company is now in a much stronger position to execute our strategies. We are focused on restoring profitability and increasing revenues, reducing product and overhead costs and strengthening R&D to capitalize on our opportunities going forward.”

               “We believe the TED ² C color product, with its enhanced graphics, features and capabilities, will bring new excitement to the electronic bingo market and open significant growth opportunities for GameTech. The Company’s solid balance sheet, healthy cash flow and stable base of recurring revenues provide us with the financial strength and flexibility to successfully manage this key product transition and to implement other new product development initiatives.”

            He added that, during the past year, the Company consolidated engineering and R&D, solidified and improved its systems, initiated additional expansion into

international markets and, as previously mentioned, “began a major introduction of   the Company’s state-of-the-art TED ² C.”  He further said that R&D has been placed

under “new leadership” and staff continues to be added in “this key area despite our focus on cost constraints.”  In addition to enhancing existing products, the Company is seeking to develop “exciting and appealing new offerings, and is very actively examining new game concepts and proposals.”

            GameTech International, Inc. is a leading supplier of a comprehensive line of electronic bingo equipment, including hand-held bingo units, fixed base units and turnkey accounting and management software. The company supports its bingo operator customers with products that typically increase play, revenues and profits, and software customized to enhance management and operations, all backed by unparalleled customer service and support.