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Investor Business Update September 2006

Investor Business Update September 2006. Safe Harbor Statement.

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Investor Business Update September 2006

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  1. Investor Business Update September 2006

  2. Safe Harbor Statement Certain statements that may be made today will be considered “forward looking” as that term is defined under the rules of the Securities and Exchange Commission. Such forward looking information and statements involve risks and uncertainties that could lead to the actual results differing from those contained in today’s presentation and discussion. The general factors impacting future results are discussed in detail in our SEC filings. The presentation is only valid for today’s date and Bally undertakes no obligation to update the information contained in this report.

  3. Presentation Outline • Overview of Bally Technologies, Inc. • Gaming Review • Systems Review • Company and Investment Highlights

  4. Corporate Overview • Worldwide technology company engaged in the design, assembly, distribution and operation of diversified gaming devices and casino systems for traditional and non-traditional markets • 75 year history in gaming • Headquarters: Las Vegas, NV • Worldwide Employees: 1,640 • Own and operate the Rainbow Casino in Vicksburg, Mississippi

  5. Status of Financial Filings Step One: Restatements Step Two: Quarterly Statements FY 06 Step Three: Form 10-K FY 06 Step Four: Q1 for FY 07

  6. Focused Technology Company • January 2003 -- Announced strategy to sell non-core assets to focus on our Bally Gaming and Systems “core” technology assets • Disposed of four businesses with proceeds of $156.5 million • Repaid $100M of term debt • Acquisition strategy (2003-2006) targeted technology-based companies in order to expand product offerings to cover the full scope of the gaming floor • ACSC • Casino MarketPlace • Sierra Design Group • Micro Clever Consulting • MindPlay LLC

  7. Focus Change - Bally Technologies, Inc. • Reflects our business focus on technology and innovation and building the Bally brand • Provides clarity to our stakeholders • Finalizes the company identity subsequent to the completion of non-core asset sales and strategic acquisitions • Longstanding value of the Bally name in the gaming industry

  8. Bally Today • Full service technology provider to the broad gaming industry. Three main business drivers: • 1. GAMING SALES • Domestic, International, Class II • 2. GAMING OPERATIONS • Wide Area, Daily Fee • 3. SYSTEMS • Software, Hardware, Services

  9. Total Solutions Provider

  10. Strong Management Team Richard Haddrill — President, Chief Executive Officer 10+ years experience in gaming and technology industry Gavin Issacs – Chief Operating Officer 15+ years experience in gaming and technology industry Robert Luciano — Chief Technology Officer 15+ years research and development experience in the gaming industry Ramesh Srinivasan — EVP, Systems 20+ years experience in technology and systems Mark Lipparelli — EVP, Operations 17+ years experience in gaming and technology industry Robert Caller — EVP, Chief Financial Officer 30+ years finance and accounting experience Paul Lofgren — EVP, New Business Development 13+ years experience in gaming and technology industry

  11. Markets: Class III, Class II, Public, and International • Sold over 100,000 devices in the last 5 years • 29,000 games on wide-area and daily fee arrangements • Largest systems provider - 240 casino customers • Worldwide licensing in over 260 gaming jurisdictions • Owner of Rainbow Casino - Vicksburg, Mississippi

  12. Recent Company Announcements • Initial placement of Hot Shots March, 2006 (1,000 + Order Backlog) • Lincoln Park System Win • Mexico initial order for 2,000 games – 2,000 online • 18% share of games at Wynn Las Vegas • System win at SouthCoast, 100% iVIEWs, Power Rewards • System displacement of competitor system at SunCoast • Borgata upgrade to iVIEW’s (4,100 units), Power Progressive (branded as Power Winner) • Initial placement of CineVision - January, 2006 • Initial placement of S9000 five reel spinner – March, 2006 • Strong share of games sold to reopened Mississippi casinos • Table Technology in Macau + TableView

  13. Gaming Business

  14. Gaming Product Line • Stepper / Mechanical • Video • Standard + Cinevision + High Profile • Participation & Fee Based Games • Class II and Central Determination • Poker

  15. M9000 Cinevision S9000 From G2E 2005 Poker Hot Shots V20 E Post G2E 2005

  16. Gaming Technology • Consolidation of Multiple Platforms to Alpha • Fully featured • Linux-based operating system • Download capable • Launched in April 2005 in all markets • Platform approvals in all jurisdictions • Target titles for each market on plan

  17. Domestic and International Expansion • Domestic game replacement market likely will remain slow in for the remainder of CY 2006 • New market / expansion opportunities: Domestic • Gulf, FLA, PA NY Lottery • Diversified portfolio of technology assets allows for faster reaction time for new market opportunities (e.g. Mexico) • Downloadable Gaming Strategy bolstered by C2/CD experiences • New Opportunities in Video for Bally • Much Tighter Focus on International Initiatives • March 2004 acquisition of Sierra Design Group provided a strong presence in the Class II and central determination gaming markets (Key Markets – WA, OK, Fla) • International • Mexico, Europe, Asia South America

  18. Systems Business

  19. Systems Technology • A market share leader • 35-40%+ domestic market share • Multiple Platform Options • Strong recurring revenue base • 22% of revenues in fiscal 2005 • Systems more critical to success • Enhance the player experience, and increase the yield per player • Large client list for upgrades and product expansions

  20. Systems Technology • Selected Customer Portfolio • CORPORATE LEVEL: Harrahs, Boyd/Borgata, Coast Casinos, Sands/Venetian, Trump, Pinnacle, Penn, Isle of Capri, Colony Capital (Resorts), Tropicana, Alladin, Fitzgeralds, Eldorado • NATIVE AMERICA: Foxwoods, Mohegan Sun, Mystic Lake, Pearl River, Seneca, Barona, Seminole Tribe, Morongo • INTERNATIONAL: 80+ clients worldwide

  21. Systems Product Migration 1980’s 1990’s 2000’s • First deployment of player tracking • All bonuses are generally manually or hand-keyed into systems • Player tracking becomes standard throughout the industry • Bally SDS introduces bar-coded marketing coupons as player incentive rewards • ACSC introduces first cashless downloads to the slot machine • Automated cashless rewards based on slot play • Elimination of manual drawing tickets and carnival like prizes • Targeted bonusing based on player demographics • Interactive Touch Screen AS400, UNIX, Windows, Tables, and System Gaming Unix Unix

  22. Systems Technology -- Downloadable Games • Evolving Technology • iVIEW used to interact with players • Peripheral and configuration management • Game personality downloads • Deployments in non-traditional markets • Game outcomes are already centrally determined • Strong systems presence likely to be an advantage

  23. Table Technology • Automated Tools - Integrated • Bet Detection • Card Dectection • Surveillance • Player Ratings • Card Handling • Patented Technology • MoneyPieces™ gaming chips • Market Potential – 30,000 Table Games

  24. R & D and Patent Focus • Deep historical and current intellectual patent portfolio in multiple product areas. • Market leading development centers in the US, UK, France, and India. • R&D spending as a percentage of revenues: • 9.0% (2005), 7.6% (2004), 5.2% (2003)

  25. Investment Highlights

  26. Investment Highlights Leading developer of gaming technology • Strong Product Portfolio Hitting Market • Cabinet, Platform and Content • Focused Corporate Strategy Industry leader in systems • Strong Support History • iVIEW gaining traction • Bonusing and promotions software Strong presence in Class II markets • Washington, Florida, and Oklahoma Domestic and International expansion • Video Markets • Florida, Pennsylvania and NY Lottery • Mexico, South America, Asia and Europe

  27. Bally Technologies, Inc.Q & A

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