Revenue for the third quarter of fiscal 2008 was $13.4 million compared with $16.6 million for the same period in fiscal 2007. The decrease in revenue for the quarter is attributed to the soft economy which has impacted the gaming industry nationwide, compounded by pricing pressures due to increased competition in the bingo equipment segment, and software release delays in the VLT segment due to either approval from gaming authorities or a softness in certain markets. "The challenges in the credit and capital markets have caused us to review our investments in auction rate securities.," Jay Meilstrup, GameTech's President and Chief Executive Officer stated. "As of July 31, 2008, the estimated market value of our investments in auction rate securities stood at $2.8 million, which reflects an impairment charge of $0.1 million for the quarter and $1.1 million for the nine months ended July 31, 2008. Although these securities continue to pay interest according to their stated terms, we have recorded these impairment charges based upon an analysis of the securities and other-than-temporary factors for the quarter and nine months ended July 31, 2008, respectively.

"Our revenue opportunities remain strong, as we continue to emphasize growing our core business and integrating Summit. We look forward to capitalizing on the potential to expand the placement of our bingo products and services, along with expanding the distribution of the video lottery product from Summit, into new domestic and international markets. And with the recent approval of the California Keno game, we have the added opportunity to introduce our Class III gaming product in the western region. In addition, GameTech intends to leverage its years of technical capabilities in wireless to expand into the newly developing mobile gaming markets and products as we continue to pursue strategic opportunities if and when they arise. But, until we can broaden our revenue base through the expansion of the video lottery terminals into newer markets, and penetrate into the Class III slot machine markets such as California and Nevada, our financial results from quarter to quarter remain volatile."

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