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Gaming Partners International Corporation Reports 2010 Fourth-Quarter and Year Results

For its fourth quarter of 2010, the Company posted revenues of $16.6 million and net income of $1.0 million, or $0.12 per basic and diluted share. These results compare to revenues of $15.8 million and net income of $1.7 million, or $0.21 per basic and diluted share, for the fourth quarter of 2009. Gross profit for the quarter was $5.4 million, or 32% of revenues, compared to $5.7 million, or 36% of revenues, in the prior year period.

For the year 2010, the Company recorded revenues of $59.9 million and net income of $4.4 million, or $0.54 per basic and $0.53 per diluted share. These results compare to revenues of $49.5 million and net income of $1.0 million, or $0.13 per basic and diluted share for the year 2009. The Company's 2010 gross profit was $21.7 million, or 36% of revenues, compared to $15.9 million, or 32% of revenues, in 2009.

The primary reasons for the increase in net income in 2010 were a significant increase in gross profit that was driven by higher sales, which caused fixed manufacturing costs to be allocated over higher production volumes, a sales mix shift toward higher-margin chips, and a $1.6 million charge for impairment of goodwill that reduced net income in 2009.

In December, the Company paid a cash dividend of $1.5 million, or $0.1825 per share, and ended 2010 with $29.8 million in cash, cash equivalents and marketable securities, as well as $6.7 million in debt.

"A significant contributor to our increased sales in 2010 was sales from casino openings in Pennsylvania, Delaware and Singapore," commented Greg Gronau, GPIC President and Chief Executive Officer. "This helped us end 2010 with a very strong cash position and focuses us for potential future growth."

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®, Bud Jones®, and Bourgogne et Grasset®, GPIC provides casino currency such as chips, plaques and jetons; casino tables, furniture and accessories; table layouts; playing cards; precision dice; roulette wheels; and RFID technology and applications. Headquartered in Las Vegas, Nevada, GPIC has additional locations in Beaune, France; San Luis Rio Colorado, Mexico; Atlantic City, New Jersey, Gulfport, Mississippi, and Macau SAR China. 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, 2010, 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:

                       Gerald W. Koslow, Chief Financial Officer
                                    +1.702.384.2425
                                 jkoslow@gpigaming.com

              GAMING PARTNERS INTERNATIONAL CORPORATION
                     CONSOLIDATED BALANCE SHEETS
                            December 31,
                              (audited)

                                                   2010          2009
                                                   ----          ----
    ASSETS
    Current Assets:
      Cash and cash equivalents                 $11,400        $3,238
      Marketable securities                      18,350        15,600
      Accounts receivable, net                    6,838         7,035
      Inventories                                 7,160         7,173
      Prepaid expenses                              790           506
      Deferred income tax asset                     949           707
      Other current assets                        1,578         1,241
                                                  -----         -----
          Total current assets                   47,065        35,500
      Property and equipment, net                11,926        13,454
      Other intangibles, net                        782           676
      Deferred income tax asset                   1,108         1,657
      Inventories, non-current                      496         1,686
      Other assets, net                             430           305
             Total assets                       $61,807       $53,278
                                                =======       =======

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current Liabilities:
      Current maturities of long-term debt       $6,696          $546
      Accounts payable                            3,216         2,828
      Accrued liabilities                         6,204         4,165
      Customer deposits                           3,919         4,698
      Income taxes payable                          273           569
                                                    ---           ---
          Total current liabilities              20,308        12,806
    Long-term debt, less current maturities          32           314
    Deferred income tax liability                   491           623
    Other liabilities                                41            45
                                                    ---           ---
            Total liabilities                    20,872        13,788
                                                 ------        ------
    Stockholders' Equity:
       Preferred stock, authorized 10,000,000
        shares, $.01 par value,
        none issued and outstanding                   -             -
       Common stock, authorized 30,000,000
        shares, $.01 par value,
      8,199,016 issued and outstanding               82            82
       Additional paid-in capital                19,196        18,985
       Treasury stock, at cost; 8,061 shares       (196)         (196)
       Retained earnings                         20,269        17,346
       Accumulated other comprehensive income     1,584         3,273
                                                  -----         -----
        Total stockholders' equity               40,935        39,490
        Total liabilities and stockholders'
         equity                                 $61,807       $53,278
                                                =======       =======

                    GAMING PARTNERS INTERNATIONAL CORPORATION
                        CONSOLIDATED STATEMENTS OF INCOME
                FOR THE THREE MONTHS AND YEAR ENDED DECEMBER 31,
                    (in thousands, except per share amounts)

                                            (unaudited)            (audited)
                                           Three Months
                                               Ended              Year Ended
                                           December 31,          December 31,
                                           ------------          ------------
                                         2010        2009    2010         2009
                                         ----        ----    ----         ----
    Revenues                          $16,641     $15,847 $59,875      $49,527
    Cost of revenues                   11,259       10,167 38,173       33,631
                                       ------       ------ ------       ------
      Gross profit                      5,382        5,680 21,702       15,896

    Marketing and sales                 1,111        1,258  4,474        4,363
    General and administrative          3,453        2,342 10,789        8,746
    Impairment of goodwill                  -            -      -        1,572
                                          ---          ---    ---        -----
      Operating income                    818        2,080  6,439        1,215
    Other income and (expense)            122           90    352          289
                                          ---          ---    ---          ---
      Income before income taxes          940        2,170  6,791        1,504
    Income tax provision                  (15)         466  2,372          457
                                          ---          ---  -----          ---
      Net income                         $955       $1,704 $4,419       $1,047
                                         ====       ====== ======       ======

    Earnings per share:
      Basic                             $0.12        $0.21  $0.54        $0.13
                                        =====        =====  =====        =====
      Diluted                           $0.12        $0.21  $0.53        $0.13
                                        =====        =====  =====        =====

    Weighted-average shares of common
     stock outstanding:
      Basic                             8,199        8,117  8,199        8,107
                                        =====        =====  =====        =====
      Diluted                           8,205        8,177  8,207        8,189
                                        =====        =====  =====        =====

SOURCE Gaming Partners International Corporation