Serving the Financial Needs of the Gaming Industry



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Serving the Financial Needs of the Gaming Industry Version 20110620

Las Vegas, Nevada Corporate Overview PDS Gaming Corporation is an innovative finance and lease company that specializes in customized financing solutions including equipment leasing, project and corporate financing and manufacturing vendor financing programs for the gaming industry. With a multitude of gaming licenses in all of the major U.S. and Native American jurisdictions, PDS Gaming is uniquely positioned and qualified to provide its creative financial products and services to gaming companies of all sizes. In the over 20 year history of PDS we have built customized financial arrangements with many of the world s strongest institutional funds and banks in order to bring their financial strength to bear for PDS gaming industry clients. This enables PDS to offer attractive rates, flexible terms and steady access to capital in many forms, including off and on-balance sheet leasing, vendor financing and traditional secured lending. PDS Gaming has provided over a billion dollars of financing to the gaming industry s largest operators, premier equipment manufacturers and distributors, as well as industry entrepreneurs. PDS has financed the expansion of the gaming industry in new jurisdictions, including the ever-growing Native American casino markets, lottery based, Class II and III markets alike. The modern gaming industry in which PDS Gaming operates demands the highest level of integrity, customer service and regulatory compliance possible. PDS provides these to our expansive client base on a daily basis and holds them as our most important company values. In this package, you will find more information about PDS financial products and services, with some helpful advice. We at PDS look forward to working with you to find the right financial solution that best fits your capital structure and future financing needs. PDS Gaming Corporation 6280 Annie Oakley Drive Las Vegas, Nevada 89120 Main Phone: (702) 736-0700 Main Fax: (702) 740-8692 Web: www.pdsgaming.com Email: info@pdsgaming.com

PDS Gaming Corporation Product Classifications PDS Gaming Corporation s wide range of financial products and services are tailored into three categories: Gaming Operators, Gaming Equipment Manufacturers, and Corporate Gaming Products. A sampling of these gaming companies includes: Operators Small Stand-alone Casinos, Taverns, Truck Stops and Card Rooms Medium Size Casino Hotel Operations Large Resort Size Casino Properties Maritime Based Gaming Route Operations New Casino Projects Manufacturers Class II & III Slot Manufacturers Casino Related Equipment Manufacturers (count room, player tracking, surveillance, signage) Hotel Related Equipment Manufacturers (furniture, fixtures and equipment FF&E ) Infrastructure and Transportation Equipment Manufacturers (point of sale, HVAC, laundry, shuttle buses, courtesy vehicles)

Gaming Operators Financial Products Overview From the small tavern to the large resort, Gaming Operators face a unique set of challenges not found in many other industries - the delicate balance of payback versus hold, customer service versus profit, comfort versus floor space, and the always present need for the better amenities and latest equipment to stay a step ahead of the competition. PDS understands the varying needs of your operation and can custom tailor a host of financial solutions for almost any situation in order to meet precise goals and objectives. PDS has a proven track record of success in helping operators maximize their returns and margins by providing a wide array of capital solutions. Gaming Operators Equipment Leasing Products PDS Leasing Products are a strong alternative financing method for gaming companies and afford a number of advantages over traditional financing. Leasing generally means lower monthly payments and more available capital to apply to the other needs of the business. PDS Gaming is the only nationwide provider of slot and gaming equipment leases. Because of PDS numerous gaming licenses, PDS is able to lease, buy, sell, operate and refurbish nearly every type of gaming device available to operators today. Besides gaming devices, PDS can lease many other types of gaming and hospitality related equipment. A Sampling of PDS Leased Equipment Class II Gaming Devices (including bingo devices) Class II Gaming LAN and WAN Equipment Class III Gaming Devices Class II & III Slot Accounting and Player Tracking Systems Traditional and Digital Table Games Surveillance Hardware and Systems Security Hardware and Systems Coin and Currency Handling and Count Room Equipment and Systems Casino Furniture, Fixtures and Equipment, Signage and Reader Boards Casino and Convention Equipment, Plasma TVs, Sound and Video Systems Hotel and Amenity Furniture, Fixtures and Equipment Restaurant, Kitchen and Laundry Equipment and Systems Information Technology Equipment and Systems, POS and Front Desk Vehicles for On Property, Inter-property, Shuttle, and Grounds Maintenance Large Scale HVAC Systems, Parking Structures, Backup Generators Much more

PDS offers various equipment leasing structures and each can be custom fit to your needs from $100,000 to over $50 million. For more information on the advantages of each lease type to fit your situation, contact PDS directly. Some of the lease products offered by PDS include: True Operating Equipment Leases True operating leases are one of the most popular lease structures because they provide the equipment you need at the lowest monthly payment. Operating leases allow you to conserve capital, manage your taxes and protect against equipment obsolescence. Equipment trade-out options during the lease term are available; at the end of these leases, your company has the option to return the equipment, purchase the equipment or continue leasing it. Many of our clients lease their equipment to manage their capital through low cost leasing, which frees up capital for projects that require higher cost capital. Other clients lease equipment purely as an instrument to help them manage assets like the buying and selling of slots every three or four years. For these reasons and many more, operating leases are a powerful resource to PDS clients. Short Term Rentals For the quick and easy answer to slot equipment needs, PDS offers a variety of short term rental programs with simple points of exit and no long term commitments. New and used devices from any approved manufacturer can be delivered to fulfill temporary openings on your floor, short term licensing requirements, market tests, or any other situation where a long term commitment is not the right solution. Equipment Sale-Leaseback A sale-leaseback unlocks the equity that is tied up on your gaming floor. PDS can purchase your gaming devices, lease them back to you and you receive an immediate benefit of cash to invest in the expansions or other amenities your customers demand. Longer term, you get all the benefits described above under True Operating Equipment Leases. Equipment Financing PDS Gaming Corporation offers a variety of capital lease and conventional finance options. These structures provide a means of purchasing the equipment you need today and paying for it over 36 to 48 months. With prompt credit approval and up to 100% financing available, PDS Gaming Corporation is one of the most highly utilized finance sources for gaming operators today. Equipment Participations Participation financing is designed to generate the most "Net Win" for your casino operation. As a licensed route operator, PDS Gaming Corporation can help your gaming operation acquire the most successful gaming devices in the market today. Payments are structured to fluctuate with daily machine performance, and you always have flexible options available to you, such as month by month contracts, upgrades and replacement equipment. Create the strongest possible casino floor without committing hundreds, thousands, or even millions of dollars in capital. With PDS Gaming Corporation as your financial partner, a participation arrangement can be the financial vehicle that best suits your operation.

Equipment Manufacturers Financial Products and Programs PDS Gaming provides many forms of capital to the manufacturing sector of the gaming industry. Because PDS understands the intricacies of gaming operations and the objectives of the manufacturers, PDS can provide capital via various unique programs to enable manufacturers to expand their business and manage their capital effectively. Several varieties of products and programs can be customized to fit almost any need in any gaming market. These products are not limited to gaming equipment manufacturers but apply to all equipment providers to the gaming industry as a whole, from hotel room safes to vehicles. Manufacturing and Vendor Products Equipment Financing Recourse and Non-recourse Programs Long Term Receivable Purchases Lease Financing Participation Financing Private Label Packaging Equipment Sale-Leaseback Packages PDS provides the gaming industry suppliers with a host of equipment based packages and programs to move equipment into the market in stable and economically efficient ways. Time and time again, PDS production oriented customers have succeeded in becoming market leaders in their fields, with ever growing market shares, new innovations and technology, and ready access to capital. Recourse and Non-recourse Programs Most of the secured equipment products offered by PDS can be done with varying levels of recourse obligation to our customers, all the way to completely non-recourse, which in most situations provides our customers with the ability to immediately realize the sale and profits related to the sale, and immediate cash flow. However, our customers never lose sight of their clients, as PDS can remain in a neutral bank-like position. Our customers can continue to bill and collect, or may choose to turn these functions over to PDS. With PDS help in your back office, you can focus on important things like building quality relationships, increasing sales and managing your corporate affairs. Long Term Receivable Purchases In many cases, manufacturers strive to provide flexibility to their clients through equipment payment programs such as bucket sales or simple deposit-build terms. PDS has well established relationships with our customers in which client payment programs can be sold to PDS as a commodity with minimal discounting and hassle free paperwork. PDS can establish these same receivable purchase lines with your company for a single purchase or a smooth ongoing process of many receivable purchases as your business grows and expands. From 90 day payment terms to multiple year sale contracts, these programs enable you to offer the payment program that best fits your clients needs while still achieving your corporate objectives. Lease and Rentals Search your books for ongoing client leases of any form and have PDS liberate the locked up investment you have in those deals. Like the Receivable Purchase product, PDS has capital available to purchase your well established or new client lease

transactions, in recourse or non-recourse structures. No matter the level of complication, PDS specializes in finding the most value possible for our customers in these leases. Participation Financing The demands of competition, the uncertainty of new markets and the risk associated with new ventures have caused the Participation Agreement to become a standard fixture in the gaming industry. Along with the participation contract comes an outlay of capital that can give even the strongest of equipment providers pause. That is where PDS can help. PDS can provide your organization the required production capital, secured by the very equipment produced, and your sales force can begin to count on an ever present supply of new equipment to fill the market demands. In most cases, PDS allows manufacturers the flexibility to move equipment from property to property and warehouse to property, along with new installations or removals, with little of the notification or paperwork usually associated with secured equipment financing arrangements. Additionally, PDS can purchase your existing participation contracts in the same manner. Equipment Sale-Leaseback Packages The production and installation of gaming and gaming related equipment requires a company to invest capital dollars into each device, which may be locked up in this equipment for many years. PDS currently has thousands of gaming devices in our portfolio, and that number grows every day through the purchase of manufacturers inventory under various leaseback structures to the manufacturers. This purchase returns the locked up capital to where it belongs, as available money for the operation and expansion of your company. The creative structures and programs PDS offers may give you options you never knew existed. Contact PDS to find out what is available to you.

Corporate Gaming Companies Financial Products Not unlike other industries, the gaming industry provides companies large and small with many challenges, while other factors unique to our industry, such as a stringent regulatory environment, 24 hour business models and distinctive tax codes, can require complex corporate structures and, therefore, complex capital structures. PDS Gaming is licensed in all major gaming jurisdictions in the US and has been licensed by numerous Native American gaming authorities. We can utilize these licenses and our in-depth knowledge of the sometimes burdensome requirements set upon gaming companies of all sizes to customize solutions to each of our customers needs. Corporate Recapitalization By providing the right combination of financing and leasing programs, aligned with creative corporate loan programs, PDS can help build a more effective capital structure for your organization. Organizing your capital into the right buckets and matching that with appropriate financing or leasing solutions will increase liquidity and preserve more expensive capital for the projects or investments that require equity or other expensive solutions. Capital Preservation PDS Gaming Corporation can structure leases and financing to preserve your capital and to help you avoid seasonal or cyclical hold and lower than expected revenues. PDS has the experience to balance your operation's needs and create financing structures to help you maintain liquidity, thereby allowing you to meet short-term goals, manage emergency expenses, and make new investments when the opportunity arises. Senior Financing PDS Gaming Corporation can provide senior financing in conjunction with most other financial products. Such senior loans are generally collateralized by a first lien on the current and long term assets of a company. Typically, PDS Gaming provides senior financing in recapitalization situations, taking out multiple lenders and providing a complete capital structure solution. In other cases, PDS has provided an equipment lease and mezzanine loan and blended those with a senior loan program where PDS acts as placement agent. International Programs As gaming becomes more and more prolific around the world, gaming companies are finding more and more markets with high demands for gaming establishments that are a step up from the usual slot parlor. Ifyour business model calls for the export of gaming equipment to foreign markets, or a partnership in a foreign gaming operation, PDS will be there to provide the financing to make your international aspirations come to fruition.

PDS Gaming Corporation Current Licenses Like many of our customers, PDS is required to have gaming regulatory approvals to conduct its business in most of the states and tribal jurisdictions where the Company s customers are located. Generally referred to as gaming licenses, the Company and its executive management must undergo thorough background investigations before licenses of many types are granted or renewed. PDS Gaming Corporation currently holds or has held, either directly or through one of its wholly-owned subsidiaries, gaming licenses in New Jersey, Nevada, Colorado, Illinois, Mississippi, Indiana, Minnesota, New Mexico and Iowa. Its licenses in Nevada include licensing as a Manufacturer, Distributor, Slot Route Operator and Operator. PDS Gaming Corporation also is a registered Distributor in California and annually files its registration with the U.S. Department of Justice as required by law. Additionally, PDS Gaming Corporation has been licensed by Native American casino regulatory authorities in California, Florida, Minnesota, New Mexico and other states. A detailed current list of the licenses PDS Gaming holds is available upon request. PDS Gaming Corporation PDS World Wide Footprint North America United States Mexico Canada Caribbean Central America Costa Rica Nicaragua Panama South America Chile Columbia Ecuador Peru Asia China (Macau) Philippines Africa Benin Burkina Faso Democratic Republic of Congo Ivory Coast Niger Togo

PDS Gaming Corporation Key Personnel Johan P. Finley Chief Executive Officer As the controlling shareholder of PDS, Mr. Finley has been the CEO and Chairman since its inception in 1988, when he founded the Company. Mr. Finley has more than 25 years of financial experience involving structured finance, project financing (domestic and tribal), vendor financing, and all types of lease transactions including, tax, synthetic and leveraged leases. Mr. Finley graduated in 1984 with a degree in finance from Moorhead State University, and prior to founding PDS, worked in Minneapolis, Minnesota, for a number of equipment and vehicle finance and lease companies, where he served as Assistant General Manager, General Manager and on to Vice President. As well as PDS, Mr. Finley has been the CEO and majority shareholder of Rehabilitation Centers of Minnesota, a provider of physical therapy services and CEO and majority shareholder of Home Products, a distributor and retailer of hearth and home products. Both companies where sold in the early 1990 s. PDS was taken public under Mr. Finley s guidance and ownership in a 1994 IPO, and then returned to a private corporation in 2004 under a Management Buyout structure. He has been found suitable for licensure in over 30 gaming jurisdictions as controlling shareholder of a corporate licensee for gaming operations (unrestricted and route operations), and as a manufacturer and distributor of gaming devices. He is involved in the oversight and structuring of most significant transactions into which PDS enters. Additionally, his day-to-day duties include the oversight of corporate transactions, including involvement in a number of mergers and acquisitions, corporate bankruptcies and syndications. Peter D. Cleary President, Treasurer and Chief Financial Officer Mr. Cleary joined PDS in 1995 and has served as Executive Vice President and Chief Financial Officer. In 1996, he was elected to the board of directors and followed that in 1999 with a promotion to President and Chief Operating Officer. In 2002, he became President, Treasurer and Chief Financial Officer. Mr. Cleary is a Certified Public Accountant and served in various positions with Coopers & Lybrand, LLP prior to joining PDS. He graduated from the University of Notre Dame, cum laude. Lona M. B. Finley Executive Vice President and Corporate Secretary Mrs. Finley was elected as Executive Vice President and Corporate Secretary in 2002. She has served in various executive capacities with the Company since it was founded in 1988, including Assistant Secretary and Chief Administrative Officer. She was elected to serve on the board of directors in 1998. Mrs. Finley received a Bachelor of Arts degree from Metropolitan State University, St. Paul, Minnesota, in 1988.

John Tipton General Counsel Mr. Tipton joined PDS as General Counsel in 2004. He has been involved in gaming regulatory matters and the gaming industry for more than 20 years. He served as Executive Director of the Colorado Department of Revenue and was the chief architect of casino gaming legislation and regulation in Colorado. He was also the chief negotiator for the state of Colorado regarding the Native American gaming compacts with the federally recognized tribes in Colorado. He is a licensed attorney in Colorado and Pennsylvania, holds an LLM in tax and is an Adjunct Professor of Law at the University of Denver College of Law where he teaches Gaming Law and Regulation. Simon W. Burgess Vice President Mr. Burgess started with PDS in 2001. With over 22 years experience in the gaming and technology industries, Mr. Burgess currently maintains his position as VP with a primary focus on new and existing clientele within PDS financial portfolio as well as business development. Mr. Burgess has extensive experience with complex financing transactions and legal structures and works closely with our clients to tailor PDS services to fit their needs. Rick Laman Vice President, Casino Sales In 2001 Mr. Laman came to PDS from 32 years with the Gaughan family of downtown Las Vegas fame. Through the years Mr. Laman went from the coin room to slot tech to floorman, on to shift boss and finally slot director, where he also took on directorship over valet and surveillance. Mr. Laman oversaw all conflicts in internal affairs and customer relations. In his current capacity, Mr. Laman handles slot equipment sales, rentals and short term contracts, and provides PDS customers with access to his background of in depth knowledge of casino floors and equipment. Gina S. Garner Vice President of Finance/Controller Ms. Garner has been with PDS since early 2000 and has held various accounting and internal audit related positions. As VP of Finance/Controller, Ms. Garner oversees the credit review of potential customers, manages the origination and maintenance of the transactions after approval and oversees all financial and lender reporting. Ms. Garner is a Certified Public Accountant in the state of Nevada and graduated from the University of Nevada Las Vegas with honors.

PDS Gaming Corporation Financial Products Summary Financial Products for Gaming Operators Short Term Rentals Equipment Leasing Products True Operating Equipment Leases Equipment Financing Equipment Participations Project Financing Programs International Programs Rated Credit Programs Financial Products for Equipment Manufacturers Asset Based Financial Products Recourse and Non-recourse Programs Receivable Purchases, Short and Long Term Lease Financing Participation Financing Private Label Packaging Equipment Sale-Leaseback Equipment Packages International Distributions Corporate Gaming Companies Corporate Recapitalization Tax Oriented Transactions Capital Preservation Senior Financing Equity Buyouts Working Capital Infusion International Programs