BGI Expanding Alabama Operations Due to Positive Court Decision

BGI, Inc. (Pink Sheets:BGII) today announced that the
Company has expanded its distribution network in Alabama to take
advantage of the recent court decision that clarified the legality of
sweepstakes machines to promote product sales. On January 31, 2006 the
circuit court of Jefferson County Alabama ruled that the sweepstakes
promoting the sale of internet access run by Multimedia Games and the
Birmingham Race Course was a lawful sweepstakes promotion permissible
under Alabama law. Additionally, several other jurisdictions have
passed or are considering local ordinances regulating and taxing
sweepstakes machines. As a result of these developments BGI has
engaged three statewide distributors to place its machines in Alabama.
One existing regional distributor has expanded statewide because of
the demand for sweepstakes machines. Also, BGI's largest and most
successful distributor has expanded his operation into Alabama to take
advantage of the opportunity. The third distributor is new to BGI but
has significant experience in the vending and bingo business in
Alabama.
   Bill Schwartz, CEO, commented, "The recent court ruling has
presented a great opportunity for BGI to place a large number of
sweepstakes machines in the state. We have been working hard to
increase our sales and service infrastructure in Alabama to take
advantage of the opportunity and wanted to update our shareholders on
our progress."

   Statements that BGI may publish, including those in this
announcement that are not strictly historical, are "forward-looking"
statements made under the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements
are inherently unreliable and actual results may vary. Factors which
could cause actual results to differ from these forward-looking
statements include but are not limited to changes in the competitive
marketplace, changes in the regulatory environment and economic
conditions. The Company undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.

   About BGI, Inc.

   BGI, Inc. (http://www.bgicorp.com) is a gaming company that
designs, distributes and markets sweepstakes-driven gaming products.
The Company's primary products -- the Charity Station sweepstakes
machine and the Lucky Strike Phone card machine -- use a sweepstakes
game as an incentive to help non-profit organizations raise funds and
sell phone cards, respectively. BGI, Inc. was founded in 1994 and has
offices in Austin, Texas. The Company currently trades on the OTC Pink
Sheets under the symbol BGII.
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CORPORATE CONTACT
Bill Schwartz
BGI, Inc.
3211 W. Rundberg, Suite 175
Austin, TX 78758
Phone: [phone]
Fax: [phone]
Web: www.bgicorp.com
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