GameTech Severs Relationship With Trend Gaming Systems, L.L.C.

RENO, Nev., Aug. 28 -- GameTech International, Inc., a leading supplier in the electronic bingo industry, today announced the termination of its distribution agreement with Trend Gaming Systems, L.L.C. ("Trend"), the Company's largest distributor in the Texas bingo market.

GameTech issued the termination notice subsequent to an action by the Federal District Court, District of Arizona, to dismiss with prejudice Trend's Application for a Temporary Restraining Order and Preliminary Injunction seeking to restrain the Company from terminating Trend.

Clarence Thiesen, GameTech's Chief Executive Officer, commented: "We are pleased with the Court's decision to allow us to enforce our contractual rights with Trend, although it is regrettable that circumstances made the termination necessary. Trend's operations in Texas account for approximately 16 percent of GameTech's total revenue.

"While we anticipate some short-term disruption in our Texas business as a result of the termination, we believe this action positions our Company to substantially improve our customer service and market position in this major bingo market. Our team is giving top priority to the process of transitioning the distribution of our products through other Texas distributors."

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 increase play, revenues and profits, and software customized to enhance management and operations, all backed by unparalleled customer service.

Certain statements contained in this document may be deemed to be forward looking statements under federal securities laws, and GameTech intended that such forward looking statements be subject to the safe harbor created thereby. Such forward-looking statements include but are not limited to expectations of the financial growth and operating results of the Company. GameTech cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by the forward looking statements contained herein. Such factors include, but are not limited to (a) changes in the markets for the Company's products; (b) the failure of new products to deliver commercially acceptable performance; (c) changes in the regulatory environment for the Company's products and the ability of the Company and its products to be licensed; (d) the ability of GameTech's management, individually or collectively, to guide the Company in a successful manner; and (e) the ability of the Company to successfully transition the distribution of its products through other distributors in Texas in light of the termination of the Company's contractual relationship with Trend in Texas. Additional information on these risk factors that could potentially affect the Company's financial results may be found in documents filed by the Company with the Securities & Exchange Commission.