LAS VEGAS--(BUSINESS WIRE)--Progressive Gaming International Corporation (NASDAQ: PGIC - News; "Progressive" or "the Company") announced today that it has completed the sale of its Table Game Division ("TGD") assets to Shuffle Master Inc. (NASDAQ Global Select Market: SHFL) ("Shuffle Master"). Upon closing, Progressive received approximately $19.8 million in cash, which reflects adjustments made for working capital allowances. Progressive intends to apply these upfront cash proceeds as well as the majority of proceeds from a strategic financing that was completed last month to repay a significant portion of the Company's outstanding debt.Earlier this week, the Company announced a Purchase Agreement and a "Technology License" agreement with Shuffle Master. In addition to the upfront cash received, Progressive will also receive $3.0 million upon the initial integration of Progressive's Casinolink® Jackpot System(TM) ("CJS") progressive jackpot system module, with Shuffle Master's specialty progressive table games. The parties expect to complete the integration in the 2007 fourth quarter. Progressive will receive recurring monthly royalty payments for the placement of the Company's progressive systems, which include CJS, on Shuffle Master's specialty table games. Additionally, the Purchase Agreement also provides for earn-out payments based on the installed base growth of the TGD assets through 2016 (subject to certain conditions), including $3.5 million in guaranteed minimum payments expected to be realized over the next four years.
About Progressive Gaming International Corporation®
Progressive Gaming is a leading supplier of integrated casino and jackpot management system solutions for the gaming industry worldwide. This technology is widely used to enhance casino operations and drive greater revenues for existing. Progressive Gaming is unique in the industry in offering casino management and progressive systems in a modular yet integrated solution. Products include multiple forms of regulated wagering solutions in wired, wireless and mobile formats. There are Progressive Gaming products in over 1,000 casinos throughout the world. For further information, visit www.progressivegaming.net
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