[Silicon Letterhead]
FOR INFORMATION CONTACT:
Andrew Pascal, CEO (Analysts) (Investor Relations)
(650) 842-9000 (650) 842-9000
FOR IMMEDIATE RELEASE
SILICON GAMING ANNOUNCES EXPIRATION AND RESULTS OF EXCHANGE OFFER
PALO ALTO, California, July 5, 2000 -- Silicon Gaming, Inc. (OTC Bulletin
Board: SGIC.OB) announced today the results of its exchange offer. The exchange
offer expired at 5:00 P.M. New York City time on June 30, 2000. At the time of
expiration, the Company's exchange agent had received 541 Election Notices
representing 11,585,457 shares of common stock participating in the exchange
offer. As a result, the Company will issue up to 11,585,457 Exchange Warrants to
participating shareholders.
Each Exchange Warrant may be exercised for 3.59662 shares of common stock
at an exercise price of $.1528 per share of common stock. Upon issuance, the
11,585,457 Exchange Warrants would be exercisable, in the aggregate, for
approximately 41,668,486 shares of common stock. Exchange Warrants are not
exercisable for the first twelve months following their date of issuance and
will expire, if not earlier exercised or terminated, on the fourth anniversary
date following their date of issuance. In addition, if the share price of the
Company's common stock, as reported on the Nasdaq National Market or a national
securities exchange, exceeds $0.2346 per share for twenty consecutive trading
days, the holders of the Exchange Warrants would have 180 days to exercise the
Exchange Warrants or they would automatically expire. This provision is not
effective while the common stock is trading on the OTC Bulletin Board or during
the first two years following issuance of the Exchange Warrants. Currently,
there is no market for the Exchange Warrants and the Company does not intend to
register the Exchange Warrants or file an application for the Exchange Warrants
on any securities exchange.
Silicon Gaming, Inc. designs and manufactures a full line of innovative
wagering products, including the Family Feud Wagering Attraction, and an
extensive library of game applications including Phantom Belle, Banana-Rama,
Eureka, Cash Cruise, TopHat 21 and Hot Reels. Headquartered in Palo Alto,
California, the Company is traded on the OTC Electronic Bulletin Board as
SGIC.OB.
FORWARD-LOOKING STATEMENTS
This press release may contain certain forward-looking statements that
involve risks and uncertainties. These are statements about future events,
results of operation, business plans and other matters. The Company's actual
results may differ materially from the results discussed in the forward-looking
statements based on various factors and risks, including those identified in the
Company's Form 10-K for the year ended December 31, 1999. Words such as
"expect", "anticipate", "intend" or other similar words are used to identify
forward looking statements. These statements are made based on Silicon Gaming's
current knowledge and understanding. However, there can be no assurances as to
whether or not actual results will be consistent with these statements. Silicon
Gaming has no obligation to update the forward-looking statements made in this
press release.
For more information on Silicon Gaming, Inc., visit the Company's website at
http://www.silicongaming.com
