Bally Gaming Signs Deal With Codere Mexico

Bally Gaming and Systems, a business unit of Alliance Gaming Corp., announced today that it has entered into a master development and supply agreement with Codere Mexico, S.A. to provide an integrated systems solution at multiple locations and a minimum of 2,000 Electronic Numbers Draw Gaming Systems (a type of player terminal) for the burgeoning gaming market in Mexico.

Codere, S.A., the parent company of Codere Mexico, S.A., is a leading gaming company based in Madrid, Spain, engaged in the management of slot machines, bingo halls, casinos and off-track betting facilities in Spain, Latin America and Italy. As of June 30, 2005, Codere, S.A. managed more than 32,000 slot machines, 74 bingo halls, 36 off-track betting facilities, a horse racing track and had interests in six casinos.

Codere Mexico, S.A., through a joint venture with Corporacion Interamericana de Entretenimiento, S.A. de C.V. (CIE) and a management services agreement with Grupo Caliente, S.A. de C.V. (Caliente), is the largest operator of gaming sites in Mexico. As of June 30, 2005, the company operated 45 gaming sites and CIE and Caliente held licenses to build and operate more than 80 additional sites.

Under terms of the master development and supply agreement, Bally Gaming and Systems will be the sole central systems provider at all Caliente locations. An advanced derivative of the Bally One System(TM) utilized in U.S. locations will afford Codere Mexico, S.A., CIE and Caliente with an integrated systems solution that includes completely cashless account wagering. The Bally One System will also interface with terminals from multiple manufacturers to create common accounting and cashiering functions.

In addition, the agreement calls for Codere Mexico, S.A. to purchase a minimum of 2,000 terminals from Bally, plus pay Bally a percentage of the daily net win. The games will be based on Bally's existing U.S. titles.

"While the key deal points cover the growing Mexican gaming market, we view this agreement as a technology relationship with one of the world's leading gaming management companies," said Robert Luciano, Chief Technology Officer of Bally Gaming and Systems. "Our extensive experience in a variety of global gaming markets has set the stage to capitalize on unique opportunities such as what is unfolding in Mexico. With the Bally One System and our deep library of games, we have just what Codere and its partners need to succeed."

"We chose Bally because of its superior technical solution, extensive systems experience, pervasive knowledge of gaming markets and its global reach," said Jose Antonio Martinez Sampedro, Chairman of Codere, S.A.'s Board of Directors and Chief Executive Officer. "We look forward to a long partnership and working with Bally in other international markets."

Recognized as the global gaming systems leader with more than 345,000 machines and 625 casino, bingo, Class II, central determination and lottery locations worldwide -- including more than 140 locations currently running Bally eTICKET(TM) on more than 140,000 slot machines -- the Bally Systems product line offers slot machine cash monitoring, cashless, accounting, security, maintenance, marketing, promotional and bonusing capabilities, enabling operators to accurately analyze performance and accountability while providing an enhanced level of customer service.