SOURCE: Wells-Gardner Electronics Corp.

February 23, 2007 08:30 ET

Wells-Gardner Announces 5-Year Agreement to Supply Global Requirements of Aristocrat Technologies

Contract Expected to Generate in Excess of $100 Million of Revenue Over the Next 5 Years

CHICAGO, IL -- (MARKET WIRE) -- February 23, 2007 -- Wells-Gardner Electronics Corporation (AMEX: WGA) announced that Aristocrat Technologies Australia Pty. Ltd. has awarded the Company a 5-year agreement of supply through March 31, 2012 to be the supplier of LCDs and CRT monitors for their global gaming needs. This is a follow on supply agreement to our previous agreement with Aristocrat.

"We are delighted to have won this important contract," said Anthony Spier, Wells-Gardner's Chairman and Chief Executive Officer. "Aristocrat is one of the two largest gaming manufacturers in the world and has significant market shares in the United States, Macau and Australia. Wells will be supplying their needs in all of those markets as well as the other markets they participate in, including Europe, South Africa, Japan and the rest of Asia and New Zealand among others. We anticipate that the revenue value of this contract is over $100 million over its life."

"This contract is a third-party endorsement of the quality of both our products and our customer service philosophy," said Marty Glazman, Wells-Gardner's Executive Vice President "Aristocrat conducted a very professional quoting process in evaluating Wells-Gardner compared to numerous competitors. The process took about nine months and we are very proud to have won this agreement of supply. We will be negotiating the contract details and expect to have it signed and executed by the end of April 2007. We have been Aristocrat's major supplier of video display products since 2000."

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. During 2000, the Company formed a 50/50 joint venture named Wells-Eastern Asia Displays ("WEA") to manufacture CRT monitors in Malaysia. The Company has the majority of its LCDs manufactured in Mainland China. In addition, the Company acquired American Gaming & Electronics, Inc. ("AGE"), a leading parts distributor to the gaming markets, which sells parts and services to over 700 casinos in North America with offices in Las Vegas, Nevada, Egg Harbor Township, New Jersey and McCook, Illinois. AGE also sells refurbished gaming machines on a global basis as well as installs and services some brands of gaming machines in casinos in North America.

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, our ability to increase production at our Malaysian joint venture, 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.

Contact Information

  • For additional investor information, please contact:

    Jim Brace
    (708) 290-2120

    Alan Woinski
    Gaming USA Corporation, USA
    (201) 599-8484