Kinbasha Gaming International, Inc. Finalizes $6 Million Debt Settlement Agreement

Kinbasha
Gaming International, Inc. Finalizes $6
Million Debt Settlement Agreement

Agreement with Bank Eliminates Approximately $6
Million in Principal, Interest and Penalties

HITACHI, Japan — March 6,
2013 — Kinbasha Gaming
International, Inc. (OTCQX: KNBA), owner
and operator of retail pachinko gaming centers nationally in Japan, today
announced it has made the final payment as per its debt settlement agreement
with ISO Debt Recovery K.K. in connection with debt owed to Tokyo Star Bank
K.K., eliminating approximately $6 million in principal, interest and
penalties. As per the agreement, payments
from Kinbasha totaled approximately $737,000 through February 28, 2013,
resulting in a net gain on settlement of approximately $5.2 million.

“This
is a significant event which wipes out $6 million in debt,” said Masatoshi
Takahama, Chief Executive Officer of Kinbasha. “This demonstrates Kinbasha’s
ability to reduce its debt through negotiations with our lenders.”

Since
2006, Kinbasha has worked with its lenders and in many cases has obtained
forbearances and loan modifications that have allowed the company to
effectively extend the maturity of its debt through interest only and/or
reduced principal payments, generally negotiated on a six month or annual
basis.

Mr.
Takahama continued, “We look forward to
continuing our debt settlement initiatives while simultaneously improving our
financial position. As we continue to realize new operational milestones, we
remain highly focused on improving our financial metrics on all fronts, and
carrying forward with our expansion initiatives in Japan.”

As Kinbasha continues to pay down its debt, management plans to
obtain additional capital to build out and/or acquire pachinko parlor stores
within greater metropolitan areas in Japan.
Kinbasha plans to shift the company’s strong branding, successful
operations teams and proprietary analytics technology to areas where pachinko
stores are more profitable, such as Tokyo, while continuing to streamline
operations.

About Kinbasha Gaming
International, Inc.

Based
in Hitachi City, Japan, Kinbasha Gaming International, Inc. (OTCQX: 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.