KNBA Kinbasha Gaming International Inc (CE)

Kinbasha Gaming International, Inc. (OTCQX: KNBA), owner and operator of retail pachinko gaming centers nationally in Japan, today announced that it has implemented a series of significant gaming environment upgrades at one of its pachinko parlors in Hitachi.

Several key areas of the Hitachi parlor have been targeted to improve the overall gaming environment, and spur same-store revenue growth. One upgrade is the introduction of a new smart card system, which eliminates the need to physically move metal balls from machine to machine, and dramatically reduces labor costs in the parlor. As an example, at one of Kinbasha's pachinko parlors in Toride, Ibaraki, where this system has already been introduced, total expenditures on part-time workers decreased by 25%-30%.

"We are pleased to introduce our new parlor upgrades in Hitachi, including our latest smart card system," said Masatoshi Takahama, Chief Executive Officer of Kinbasha. "Not only does the card system significantly improve customer satisfaction, it also reduces our labor costs throughout the year. It's a perfect example of a win-win situation for both Kinbasha and our loyal patrons."

As part of its Hitachi parlor upgrades, Kinbasha also announced the roll-out of the company's latest clean air generator to remove unwanted dust and smoke within designated smoking areas. In addition, pachinko machines are now separated by privacy panels that have been installed to provide a more secluded environment for each player to focus on the game. These improvements are part of Kinbasha's efforts to create a comfortable gaming environment and appeal to as many demographics as possible.

"Kinbasha is intently focused on the satisfaction of our customers," continued Mr. Takahama. "Although this equipment was first introduced at our largest parlors, as we continue to implement our upgrade initiatives these new systems are expected to be rolled-out at Kinbasha's other locations as well."

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

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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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