SOURCE: Wells-Gardner Electronics Corp.

March 06, 2007 11:30 ET

Wells-Gardner Announces That Its AG&E Subsidiary and Par 4 of New Jersey Have Agreed to a Long-Term Contract to Combine Their Used Gaming Device Businesses

CHICAGO, IL -- (MARKET WIRE) -- March 6, 2007 -- Wells-Gardner Electronics Corporation (AMEX: WGA) announced that its wholly owned subsidiary American Gaming & Electronics (AG&E) has entered into a 5-year agreement with Par 4 of Hammonton, New Jersey to combine their Used Gaming Devices businesses under the AG&E brand.

"We are delighted to have entered into a long-term contract with a company of the quality and reputation of Par 4," said Anthony Spier, Wells-Gardner's Chairman and Chief Executive Officer. "This is a natural combination of two fine Used Gaming Devices companies who are located within 15 miles of each other. We have structured this transaction as a combination, not a purchase, and hence there is no upfront purchasing consideration. Tony Tomasello, President of Par 4 will be responsible to the AG&E CEO for managing the entire business. This ensures the long-term viability of this business."

"This is expected to result in a significant combined business in 2007," said Mr. Tomasello. "We have a great opportunity to grow this business aggressively while we are reducing the combined costs by merging the business into the Par 4 facility. Par 4 will be the exclusive used gaming devices refurbishing subcontractor for AG&E. Par 4 and AG&E personnel will be responsible for both purchasing and selling. Both companies have licenses with the Division of Gaming Enforcement of the State of New Jersey and in addition AG&E has 51 other licenses throughout North America. We are all excited by the potential of this combination."

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 most 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 and our Chinese LCD sub-contractor, 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. All press releases and SEC filings are available on the Wells-Gardner website accessible on by clicking Company and then clicking News.

Contact Information

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

    Alan Woinski
    Gaming USA Corporation
    (201) 599-8484