03/17/2009

Shuffle Master, Inc. Announces Purchase of Intellectual Property from Elixir Gaming Technologies

Shuffle Master, Inc. and Elixir Gaming Technologies, Inc. (AMEX:EGT) today jointly announced they have entered into an agreement pursuant to which Elixir Gaming has sold to Shuffle Master its intellectual property related to Elixir Gaming’s card shuffling and card deck checking equipment, including the RandomPlus Shuffler, the ShufflePro Shuffler, and the DeckChecker. In connection with this acquisition, Shuffle Master will also purchase Elixir Gaming’s remaining finished-goods inventory of products in this category

In addition, the Companies have agreed to dismiss all claims with prejudice pertaining to the outstanding patent infringement litigation between them. This includes the release to Shuffle Master of a $3.0 million bond, plus accrued interest, that Shuffle Master posted in 2004 in connection with an injunction that it received at that time.

The total consideration paid to Elixir Gaming for these agreements is a base amount of $2.4 million, subject to adjustment related to the precise final inventory, not to exceed $2.8 million.

Clarence Chung, Chairman and Chief Executive Officer of Elixir Gaming, commented, “We believe the sale of our table game support products to Shuffle Master places these assets with the best company to fully exploit their market value and importantly, brings solid financial value to Elixir Gaming. With the sale of this product line complete, Elixir Gaming can focus management resources on addressing market opportunities that further our strategy of expanding our installed base of electronic gaming devices on a revenue participation model in developing Asian markets. We are also pleased to reach a mutually amicable solution to the patent infringement litigation issues that the two companies have been involved in for nearly five years.”

Timothy Parrott, Chief Executive Officer of Shuffle Master, stated, “I’m thankful that as one of his final contributions as CEO, Mark Yoseloff put the wheels in motion on this deal. I’m pleased that we can finally put the litigation matter behind us and look forward to taking on the Elixir Gaming product line, particularly the DeckChecker, which has proven to be an important product in the Asian market. Further, we look forward to the opportunity to work with Elixir Gaming in the future in supplying their growing slot machine and e-table business throughout Asia.”

This release contains forward-looking statements that are based on management’s current beliefs and expectations about future events, as well as on assumptions made by and information available to management. The Company considers such statements to be made under the safe harbor created by the federal securities laws to which it is subject, and assumes no obligation to update or supplement such statements. Forward-looking statements reflect and are subject to risks and uncertainties that could cause actual results to differ materially from expectations. Factors that could cause actual results to differ materially from expectations include, but are not limited to, the following: changes in the level of consumer or commercial acceptance of the Company’s existing products and new products as introduced; advances by competitors; acceleration and/or deceleration of various product development, promotion and distribution schedules; product performance issues; higher than expected manufacturing, service, selling, administrative, product development, promotion and/or distribution costs; changes in the Company’s business systems or in technologies affecting the Company’s products or operations; reliance on strategic relationships with distributors and technology and manufacturing vendors; current and/or future litigation or claims; tax matters, including changes in tax legislation or assessments by taxing authorities; acquisitions or divestitures by the Company or its competitors of various product lines or businesses and, in particular, integration of businesses that the Company may acquire; changes to the Company’s intellectual property portfolio, such as the issuance of new patents, new intellectual property licenses, loss of licenses, claims of infringement or invalidity of patents; regulatory and jurisdictional issues (e.g., technical requirements and changes, delays in obtaining necessary approvals, or changes in a jurisdiction’s regulatory scheme or approach, etc.) involving the Company and its products specifically or the gaming industry in general; general and casino industry economic conditions; the financial health of the Company’s casino and distributor customers, suppliers and distributors, both nationally and internationally; the Company’s ability to meet its debt service obligations, including the Notes, and to refinance its indebtedness, which will depend on its future performance and other conditions or events and will be subject to many factors that are beyond the Company’s control; and various risk related to the Company’s customers’ operations in countries outside the United States, including currency fluctuation risks, which could increase the volatility of the Company’s results from such operations. Additional information on these and other risk factors that could potentially affect the Company’s financial results may be found in documents filed by the Company with the Securities and Exchange Commission, including the Company’s current reports on Form 8-K, quarterly reports on Form 10-Q and annual report on Form 10-K.

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