Progressive Gaming and Derek Webb Settle All Outstanding Litigation

Progressive Gaming and Derek Webb Settle All Outstanding Litigation

Progressive Gaming International Corporation, (NASDAQ: PGIC) (the “Company”), announced today it has entered into a settlement agreement with Derek Webb and Prime Table Games concerning all outstanding litigation in the Derek Webb, et al (“Webb”) v. Mikohn Gaming Corporation matter, a case that was initiated nearly ten years ago. Under the terms of the settlement agreement, Webb will receive $20 million in cash within one day of execution of the settlement agreement and the reimbursement of Webb’s legal fees within 30 business days of execution of the settlement agreement.

Russel McMeekin, President and Chief Executive Officer for the Company, stated, “The conclusion of this case represents the final step in resolving the last significant legacy matter the Company has faced. We believe this removes any distraction from Progressive Gaming’s significant success as it has emerged as a leading systems technology provider for the global gaming industry. We concluded that a settlement now will eliminate the cost and management resources involved in an extended legal process, and allow the Company and its personnel to move forward with an undivided focus on further expanding our slot management and table management systems installed based and to pursue high-margin revenue growth. With recent evidence of the Company’s operational strength and record installations highlighted in our third quarter results, the sale of our Table Games Division and substantial progress in strengthening our balance sheet, we believe we will be in a better position to end 2007 strongly and enter 2008 well positioned to benefit from our recurring revenue business model.”

On October 26, the Company reported that following a ruling by the United States District Court for the Southern District of Mississippi to not grant Progressive’s post-trial motions in the Webb case, that it would move forward with the appeals to the appropriate federal appellate court and planned to post a $20 million bond by November 8, 2007 in conjunction with the appeal of the case.

The Company will fund the settlement payments from available cash on hand. In the three months ended September 30, 2007 Progressive Gaming recorded a charge related to the Webb vs. Mikohn case of $43.7 million. This charge included the total judgment and legal fees. As a result of the settlement, Progressive Gaming expects to revise its September 30, 2007 financial statements to reflect a reduction in the loss from discontinued operations by $19.0 million which will reduce the Company’s loss per share after discontinued operations by $0.50.

About Progressive Gaming International Corporation®

Progressive Gaming is a leading supplier of integrated casino and jackpot management system solutions for the gaming industry worldwide. This technology is widely used to enhance casino operations and drive greater revenues for existing products. Progressive Gaming is unique in the industry in offering casino management and progressive systems in a modular yet integrated solution. Products include multiple forms of regulated wagering solutions in wired, wireless and mobile formats. There are Progressive Gaming products in over 1,000 casinos throughout the world. For further information, visit www.progressivegaming.net

Safe Harbor Statements under The Private Securities Litigation Reform Act of 1995: This release contains certain forward-looking statements, including statements regarding expectations for the Company ending 2007 strongly and entering 2008 well-positioned to benefit from its recurring revenue business model, the Company’s intent to use cash on hand to fund the Webb settlement payments, and expected revisions to the loss from discontinued operations included in previously announced financial results for the third quarter of 2007. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, the risk that the Company may not be able to obtain financing necessary to fund its pending redemption of $15 million of high yield debt on November 19, 2007, the risk that revisions to the Company’s loss from discontinued operations may deviate from expected amounts, risks related to the Company’s ability to enforce and develop its intellectual property rights, including rights licensed from third parties, the risk that patents may exist of which the Company is not aware, or that existing patents may provide benefits to third parties beyond those anticipated by the Company, the Company’s ability to meet its capital requirements, relationships with casino operators, the overall industry environment, customer acceptance of the Company’s new products, further approvals of regulatory authorities, adverse court rulings, production and/or quality control problems, the denial, suspension or revocation of privileged operating licenses by governmental authorities, competitive pressures and general economic conditions as well as the Company’s debt service obligations. For a discussion of these and other factors which may cause actual events or results to differ from those projected, please refer to the Company’s most recent annual report on Form 10-K and quarterly reports on Form 10-Q, as well as other subsequent filings with the Securities and Exchange Commission. The Company cautions readers not to place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims any obligation, to update or revise any forward-looking statements to reflect new circumstances or anticipated or unanticipated events or circumstances as they occur.

Contacts

Progressive Gaming International Corporation
Heather A. Rollo, 702-263-2583
Chief Financial Officer
or
Jaffoni & Collins Incorporated
Richard Land / Dave Jacoby, 212-835-8500
pgic {at} jcir(.)com