PGICD Progressive Gaming International (MM)

Progressive Gaming International Corporation (NASDAQ: PGICD) (�the Company�), a provider of diversified products and services used in the gaming industry worldwide, announced today that it has taken action to reduce annual aggregate selling, general and administrative, research and development and operating expenses by approximately $13 - $15 million, or approximately 25% - 29%. Progressive Gaming International Corporation�s President and Chief Executive Officer, Terrance W. Oliver, commented, �The $13 - $15 million reduction in annual operating expenses positions the Company to achieve improving EBITDA and cash flows at a time when worldwide economic challenges have slowed the adoption rate for gaming industry system placements. Accordingly, while we believe our cost reductions and continued focus on sales addresses this near-term uncertainty, we have, as disclosed last week, suspended our full year guidance for revenue and systems installed base metrics and EBITDA. �Progressive Gaming possesses deep domain knowledge in important gaming industry technologies such as RFID systems applications and distributed open software architecture for mission critical regulated industries. Elements of our advanced systems solutions are installed at nearly all major gaming companies; including the most prominent gaming operators worldwide. Notwithstanding the cost reduction announced today, we remain ready to meet all of the current and future installation needs of our global customers who have committed to Progressive Gaming�s products, systems and solutions. �We are focused on delivering consistent EBITDA and cash flows based on our system technology expertise, strategic partnership and leaner operating structure. In addition, the Board of Directors continues to evaluate alternative measures to enhance the Company�s financial performance and / or increase shareholder value.� The Company has streamlined certain sales, marketing and service functions by leveraging distribution channels and through the planned consolidation of regional offices. Additionally, the Company will not participate in trade shows and instead will focus on direct customer meetings and focus groups. The Company�s executive management has agreed to a reduction of their salaries along with foregoing other fringe benefits. The Company has carefully considered its customer service commitments and engineering commitments when developing its restructuring plan and will remained focused on these key priorities. About Progressive Gaming International Corporation� Progressive Gaming is a trusted leader of enterprise gaming solutions and supplier of integrated casino and jackpot management systems 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. �2008 Progressive Gaming International Corporation�. All rights reserved. Safe Harbor Statements under The Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements, including statements regarding Progressive Gaming�s opportunities related to its recent expanded relationship with IGT and independent applications, and its recent implementation of a reduction of its annual operating expenses. 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 of the Company to meet its covenants requirements contained in agreements with PEM and IGT, the denial, suspension or revocation of privileged operating licenses by governmental and regulatory authorities, competitive pressures and general economic conditions as well as Progressive Gaming�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 Progressive Gaming�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. Progressive Gaming cautions readers not to place undue reliance on any forward-looking statements. Progressive Gaming 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.