Gambling News by House of Odds

PokerTek, Inc. today announced financial results for its first quarter ended
March 31, 2006. Net loss for the first quarter of fiscal 2006 was
approximately $1,591,000, or ($0.17) per diluted share, compared with net
loss of approximately $725,000, or ($0.11) per diluted share, in the first
quarter of 2005. Revenues from both license fees and equipment sales totaled
approximately $473,000, up from zero in the same period in 2005. Revenues
consisted of monthly license fees totaling approximately $360,000 from the
Seminole Hardrock properties in Florida and the Chickasaw Properties in
Oklahoma and the remainder from equipment sales to our international
distributor, Aristocrat, for its use in demonstrations of the PokerPro(TM)
system to international licensing bodies and potential customers.

As expected, the net loss increased to approximately $1,591,000 from
approximately $725,000 in the same period in 2005, creating a net loss per
common share, basic and diluted, of ($0.17) compared to ($0.11) for the
first quarter of fiscal year 2005. The following factors were the main
components affecting the loss for the first quarter of 2006 as compared to
the first quarter of 2005: increase in employees and related salaries and
benefits; increase of approximately $133,000 of legal and professional fees
primarily associated with being a public company; and an increase of
approximately $120,000 related to non-cash stock option expense in
accordance with Statement of Financial Accounting Standards No. 123R.
Partially offsetting the increase in expenses was an increase in interest
income of approximately $192,000.

At March 31, 2006, the Company had no debt and approximately $18.3 million
total cash and cash equivalents.

"We believe that we are gaining sales momentum as we continue to
aggressively pursue sales opportunities in the United States and Canada. We
understand that Aristocrat, our international distributor, is doing the same
on a global basis," stated Lou White, Chief Executive Officer of PokerTek.
"We believe it is only a matter of time before many venues realize the
win-win impact our PokerPro(TM) system should have on both the player's
poker-playing experience and the casinos ability to operate more profitably.
Expense growth was as expected as we continue to gear up for our anticipated
expansion."