Gaming Partners International Reports Financial Results for the Second Quarter and First Six Months of 2010

LAS VEGAS, Aug. 11 /PRNewswire-FirstCall/ -- Gaming Partners International Corporation (Nasdaq: GPIC), a leading worldwide provider of casino currency and table gaming equipment, today announced financial results for the second quarter and first six months of 2010.

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For its second quarter of 2010, the Company posted revenues of $19.9 million and net income of $2.7 million, or $0.33 and $0.32 per basic and diluted share, respectively. These results compare to revenues of $11.3 million and net income of $0.2 million, or $0.02 per basic and diluted share, for the second quarter of 2009. Gross profit for the quarter was $8.6 million, or 43% of revenues, compared to $3.1 million, or 28% of revenues, for the second quarter of 2009.

For the first six months of 2010, the Company posted revenues of $30.9 million and net income of $2.7 million, or $0.33 per basic and diluted share. These results compare to revenues of $20.3 million and a net loss of $0.3 million, or $(0.04) per basic and diluted share, for the first six months of 2009. Gross profit for the first six months of 2010 was $12.3 million, or 40% of revenues, compared to $5.5 million, or 27% of revenues, for the comparable period in 2009.

At June 30, 2010 the Company had cash, cash equivalents, and marketable securities of $18.5 million, compared to $18.8 million at December 31, 2009.

"GPIC had a record quarter for gross profit, net income, and earnings per share. Revenues for the first six months of 2010 were up more than 50% over last year and we earned $2.7 million in net income, compared to last year's slight loss," said Greg Gronau, GPIC's President and CEO. "We got off to a strong start in the second quarter with the shipment to Marina Bay Sands in Singapore and we finished the quarter by largely completing the delivery of our orders to casinos which recently commenced table game operations in Pennsylvania, Delaware, and West Virginia. We are proud of our results for the second quarter, but given our current backlog, our second half 2010 results are expected to be more in line with historical performance."

About Gaming Partners International Corporation (GPIC)

GPIC manufactures and supplies casino table games and equipment to licensed casinos worldwide. Under the brand names of Paulson®, Bourgogne et Grasset® and Bud Jones®, GPIC provides casino currency such as chips, plaques and jetons; gaming furniture and accessories; table layouts; playing cards; dice; and roulette wheels. GPIC pioneered the use of security features such as RFID technology in casino chips and provides RFID solutions including chips, readers and displays. Headquartered in Las Vegas, Nevada, GPIC also has offices Beaune, France; San Luis Rio Colorado, Mexico; Atlantic City, New Jersey, and Gulfport, Mississippi. For additional information, please visit www.gpigaming.com.

Safe Harbor Statement

This release contains "forward-looking statements" based on current expectations involving known and unknown risks and uncertainties, such as statements relating to anticipated future sales or the timing thereof; the long-term growth and prospects of our business or any jurisdiction; the duration or effects of unfavorable economic conditions which may reduce our product sales; and the long term potential of the RFID gaming chips market and the ability of GPIC to capitalize on any such growth opportunities. Actual results or achievements may be materially different from those expressed or implied. GPIC's plans and objectives are based on assumptions involving judgments with respect to future economic, competitive and market conditions, the timing and its ability to consummate acquisitions, and future business decisions and other risks and uncertainties identified in Part I-Item 1A, "Risk Factors" of the Company's Annual Report on Form 10-K for the period ended December 31, 2009, all of which are difficult or impossible to predict accurately and many of which are beyond its control. Therefore, there can be no assurance that any forward-looking statement will prove to be accurate.

For more information please contact:
For Gaming Partners International Corporation:

Gerald W. Koslow
702-384-2425
jkoslow@gpigaming.com

GAMING PARTNERS INTERNATIONAL CORPORATION CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands, except share amounts)
			June 30,	December 31,
			2010	2009
*ASSETS*
Current Assets:
	Cash and cash equivalents		$ 4,510	$ 3,238
	Marketable securities		14,038	15,600
	Accounts receivable, less allowance for doubtful accounts of
	$169 and $220, respectively		9,588	7,035
	Inventories		5,769	7,173
	Prepaid expenses		479	506
	Deferred income tax asset		558	707
	Other current assets		704	1,241
		Total current assets	35,646	35,500
	Property and equipment, net		11,847	13,454
	Intangibles, net		638	676
	Deferred income tax asset		1,147	1,657
	Inventories, non-current		1,096	1,686
	Other assets, net		346	305
	Total assets		$ 50,720	$ 53,278

*LIABILITIES AND STOCKHOLDERS' EQUITY*
Current Liabilities:
	Current maturities of long-term debt		$ 14	$ 546
	Accounts payable		2,932	2,828
	Accrued liabilities		3,914	3,516
	Customer deposits		2,995	4,698
	Income taxes payable		372	569
	Other current liabilities		788	649
		Total current liabilities	11,015	12,806
Long-term debt, less current maturities			40	314
Deferred income tax liability			447	623
Other liabilities			38	45
	Total liabilities		11,540	13,788
Stockholders' Equity:
Preferred stock, authorized 10,000,000 shares, $.01 par value,
	none issued or outstanding		-	-
Common stock, authorized 30,000,000 shares, $.01 par value,
	8,207,077 and 8,199,016 respectively, issued and outstanding		82	82
Additional paid-in capital			19,093	18,985
Treasury stock, at cost; 8,061 shares			(196)	(196)
Retained earnings			20,049	17,346
Accumulated other comprehensive income			152	3,273
		Total stockholders' equity	39,180	39,490
		Total liabilities and stockholders' equity	$ 50,720	$ 53,278

GAMING PARTNERS INTERNATIONAL CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except per share amounts)
		Three Months Ended		Six Months Ended
		June 30,		June 30,
		2010	2009	2010	2009
Revenues		$ 19,906	$ 11,312	$ 30,851	$ 20,256
Cost of revenues		11,321	8,191	18,595	14,722
	Gross profit	8,585	3,121	12,256	5,534

Marketing and sales		1,190	1,080	2,275	2,063
General and administrative		2,842	1,969	5,437	4,292
	Operating income (loss)	4,553	72	4,544	(821)
Other income and (expense)		92	(21)	155	110
	Income (loss) before income taxes	4,645	51	4,699	(711)
Income tax expense (benefit)		1,979	(119)	1,996	(383)
	Net income (loss)	$ 2,666	$ 170	$ 2,703	$ (328)

Earnings (loss) per share:
	Basic	$ 0.33	$ 0.02	$ 0.33	$ (0.04)
	Diluted	$ 0.32	$ 0.02	$ 0.33	$ (0.04)
Weighted-average shares of common stock outstanding:
	Basic	8,199	8,103	8,199	8,103
	Diluted	8,207	8,185	8,205	8,103