The Company also announced that it expects to file its Form 10-Q for the fiscal quarter ended September 30, 2007 with the Securities and Exchange Commission on December 21, 2007.

“We are very pleased with our continued improvement in both business momentum and margins in all the key parts of our business,” said Richard M. Haddrill, the Company’s Chief Executive Officer.

First Quarter Fiscal 2008 Highlights

• Total revenues increased 23 percent to $189.0 million as compared with $153.8 million for the same period last year.
• Selling, general and administrative expenses increased 6 percent to $52.3 million and declined to 28 percent of total revenue from 32 percent as compared with the same period last year.
• Net income increased to $21.3 million, or 11 percent of total revenue, compared with a loss of $0.2 million in the same period last year, as a result of improved margin and cost leverage.
• Adjusted EBITDA was $58.5 million, a 122-percent increase as compared with the same period last year.
• The Company made an unscheduled $15.0 million payment on its term loan during the first quarter of fiscal 2008.
• Cash and cash equivalents increased to approximately $51.6 million at September 30, 2007 as compared with approximately $40.8 million at June 30, 2007.

“In addition to improving our margins, the quarterly results also reflect our improving operating leverage,” said Robert C. Caller, the Company’s Chief Financial Officer. “Our SG&A and R&D expenses were favorably impacted by better control over costs and savings from our India Development Centers.”

Unaudited summary financial information for the Bally Gaming and Systems segment for the three months ended September 30, 2007 and 2006 are presented below:

The Company provides Adjusted EPS for the fiscal quarter ended Sept. 30, 2007 and the range of Adjusted EPS for fiscal 2008 in this press release as additional information regarding the Company’s operating results for the fiscal quarter ended Sept. 30, 2007 and expected operating results for fiscal 2008. Adjusted EPS adds back the impact of stock-based compensation, net of tax, to Diluted EPS as determined in accordance with GAAP. The Company believes that this presentation of Adjusted EPS facilitates investors' understanding of Bally’s historical operating trends because it provides important supplemental information in evaluating the operating results of the business. Adjusted EPS is not an alternative to Diluted EPS as determined in accordance with GAAP.
 
      With a history dating back to 1932, Las Vegas-based Bally Technologies designs, manufactures, operates and distributes advanced gaming devices, systems and technology solutions worldwide. Bally’s product line includes reel-spinning slot machines, video slots, wide-area progressives and Class II, lottery and central determination games and platforms. As the world’s No. 1 gaming systems company, Bally also offers an array of casino management, slot accounting, bonusing, cashless and table management solutions. The Company also owns and operates Rainbow Casino in Vicksburg, Miss. Additional Company information, including the Company’s investor presentations, can be found at www.BallyTech.com.

      This news release may contain “forward-looking” statements within the meaning of the Securities Act of 1933, as amended, and is subject to the safe harbor created thereby. Such information involves important risks and uncertainties that could significantly affect the results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements.  Future operating results may be adversely affected as a result of a number of risks that are detailed from time to time in the Company’s filings with the Securities and Exchange Commission. The Company undertakes no obligation to update the information in this press release and represents that the information is only valid as of today’s date.
– BALLY TECHNOLOGIES, INC. –

BALLY TECHNOLOGIES, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(1) Cost of gaming equipment and systems excludes amortization related to certain intangibles, including core technology and license rights, which are included in depreciation and amortization.