SOURCE: Wells-Gardner Electronics Corp.

Wells-Gardner Electronics Corp.

July 12, 2011 08:30 ET

Illinois Supreme Court Has Upheld Legality of Capital Spending Bill and Therefore the Illinois Video Lottery Business

CHICAGO, IL--(Marketwire - Jul 12, 2011) - Wells-Gardner Electronics Corporation (NYSE Amex: WGA) announced that the Illinois Supreme Court has unanimously upheld the legality of the Capital Spending Bill and therefore the Illinois Video Lottery Terminal (VLT) business.

"This ruling by the Illinois Supreme Court is positive news for the Company," said Anthony Spier, Wells-Gardner's Chairman and Chief Executive Officer. "We anticipate that the first placements of VLT units will be in late first quarter or early second quarter 2012. We project that the Illinois VLT business will add additional sales of between $80 and $93 million over the next four years generating additional net income before tax of between $4.5 and $7.0 million over that period. This business will be conducted by WGA's American Gaming & Electronics (AG&E) unit."

"In addition our new Business Development and Engineering team under the direction of Dave Silk is developing many new and exciting products and adding to our patent portfolio, and we believe by late 2012 or early 2013 some of these new products will add to sales and earnings in all of our businesses. We recently filed an exciting new software patent which brings our total number of patents granted and filed to 5. We expect to add to this total in the next twelve months. This group has already developed and sourced new LED products which are part of our 'green' marketing initiative. AG&E is already aggressively promoting and selling these products to our casino customers."

Founded in 1925, Wells-Gardner Electronics Corporation is a distributor and manufacturer of color video monitors and other related distribution products for a variety of markets including, but not limited to, gaming machine manufacturers, casinos, coin-operated video game manufacturers and other display integrators. The Company has most of its LCDs manufactured in Mainland China. In addition, the Company's American Gaming & Electronics, Inc. subsidiary ("AGE"), a leading parts distributor to the gaming markets, sells parts and services to over 700 casinos in North America with offices in Las Vegas, Nevada, Hammonton, New Jersey, Miami, Florida and McCook, Illinois.

This press release contains forward-looking statements within the meaning of the federal securities laws. Those statements include statements regarding the intent, belief or expectations of the Company and its management. Readers are cautioned that the forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, and that actual results could differ materially from those expressed in any forward-looking statement. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, but are not limited to, development of competing technologies, availability of adequate credit, interruption or loss of supply from key suppliers, increased competition, the regulatory process and regulatory and legislative changes affecting the gaming industry. Wells-Gardner assumes no obligation to update the information contained in this release to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events. For additional investor information, please contact Jim Brace - Wells-Gardner at (708) 290-2120 or Alan Woinski - Gaming USA Corporation at (201) 599-8484.

Contact Information

  • For additional investor information, please contact
    Jim Brace
    Wells-Gardner
    (708) 290-2120

    Alan Woinski
    Gaming USA Corporation
    (201) 599-8484