The Company generated free cash flow of $5.9 million in the fiscal 2012 first quarter compared to free cash flow of $3.6 million in the year-ago period. Total cash generation in the quarter was $6.9 million compared to $6.4 million a year ago. Free cash flow and cash generation are non-GAAP financial measures and there are no truly comparable GAAP financial measures. (Definitions of “free cash flow” and “cash generation” are provided below).

In the first quarter of fiscal 2012, the Company repurchased approximately 392,821 shares of its common stock for total consideration of approximately $1.9 million. The Company has purchased a total of 2.2 million shares at an average price of $5.36 per share since the inception of the share repurchase program in December 2010, and as of December 31, 2011, had approximately $3.1 million remaining under its $15.0 million common stock repurchase plan.

Adam Chibib, Chief Financial Officer, commented, “Multimedia Games continues to benefit from its dual focus on generating profitable revenue while exercising fiscal discipline. We grew quarterly free cash flow approximately 63% on a year-over-year basis and generated a nearly $36 million improvement in our net cash/net debt position. With our strengthened balance sheet, Multimedia Games has a strong financial foundation that allows us to prudently invest in the development of new products and refresh our existing installed base, while simultaneously allocating capital to secure long-term unit placement extensions with our largest customer and expand our addressable markets in order to drive sustainable long-term growth.”

Raises Fiscal 2012 EPS Outlook

Multimedia Games today raised its EPS expectations for fiscal 2012. While the Company maintains a conservative outlook regarding the economic environment and the pace of customer capital spending, reflecting the strength of the fiscal 2012 first quarter results, Multimedia Games now anticipates fiscal 2012 diluted EPS will be in a range of $0.42-$0.45, compared to its prior expectation of a range of $0.23-$0.26.

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