KNBA Kinbasha Gaming International Inc (CE)

Kinbasha Gaming International, Inc. (OTCQB: KNBA), owner and operator of retail pachinko gaming centers nationally in Japan, has filed its quarterly report with the SEC and released its financial results for the three and nine months ended December 31, 2012.

For the three months ended December 31, 2012, net revenues decreased from $26.0 million to $23.6 million, due primarily to the sale of the business rights to our three remaining restaurants on July 1, 2012. Net gaming revenues decreased slightly to $23.2 million from $23.4 million solely as a result of a 4.7% decrease in the yen/dollar exchange rate. When expressed in yen, net gaming revenues actually increased 4.2% for the three months ended December 31, 2012 compared to the same quarter in 2011.

For the nine months ended December 31, 2012, net revenues increased to $73.0 million from $68.6 million in the nine months ended December 31, 2011. This increase was due to an increase in net gaming revenues from $62.0 million to $70.2 million.

Net income improved to $7.3 million in the three months ended December 31, 2012 as compared to net income of $1.4 million in the same period of 2011. Likewise, net income improved to $4.9 million in the nine months ended December 31, 2012 as compared to a net loss of $8.7 million in the same period of 2011.

These improvements to the bottom line are generally attributed to enhanced market conditions, an increase in total wagers due to the reopening of a pachinko parlor in April 2012 that had been closed due to earthquake damage, and a non-recurring $3.0 million gain resulting from a change in the Company's policy for employment termination benefits. Net income also increased as a result of improved payout ratios due to a shift in the mix of pachinko machines and the positive effects of Kinbasha's marketing programs to promote more cost effective prize payouts.

"Kinbasha is pleased to report another productive quarter," said Masatoshi Takahama, Chief Executive Officer of Kinbasha. "As we execute our strategic growth initiatives, we believe the decisions we have made will position Kinbasha to continue to grow in our proven markets while also reducing expenses and reducing debt. We continue to negotiate with our lenders to restructure our loans in default, including the restructuring of one loan in particular, in the principal amount of $6.5 million."

Mr. Takahama continued, "As the only Japanese pachinko company that is SEC-reporting we also look forward to pursuing a listing on the OTCQX and working with our relationships in the US markets to raise capital for our expansion initiatives in greater metropolitan areas such as Tokyo."

About Kinbasha Gaming International, Inc.

Based in Hitachi City, Japan, Kinbasha Gaming International, Inc. (OTCQB: KNBA) is a retail gaming company that operates 21 pachinko parlors in the Japanese prefectures of Ibaraki, Tokyo and Chiba. For more than 50 years, the company's retail gaming establishments have offered customers the opportunity to play the games of chance known as pachinko and pachislo. Pachinko is played on a device which resembles a vertical pinball machine and pachislo is played on a machine that resembles a western style slot machine. Pachinko and pachislo are collectively ranked as Japan's largest leisure activity. For more information on Kinbasha, please visit: www.kinbashainc.com

For comprehensive investor relations material, including fact sheets, multimedia resources, and videos regarding Kinbasha, please follow the appropriate link: Investor Portal, Overview Video and Investor Fact Sheet.

Safe Harbor Statement

This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding: the Company's business and operations; business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

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Investor Contact: Trilogy Capital Partners - Asia Darren Minton President 212-634-6413 Email Contact