KNBA Kinbasha Gaming International Inc (CE)

Kinbasha Gaming International, Inc. (PINKSHEETS: KNBA), owner and operator of retail pachinko gaming centers nationally in Japan, has filed its quarterly report with the SEC and released its financial results. The reported quarter reflects Kinbasha's business activity ending September 30, 2012.

Kinbasha revenues increased to $25.3 million and $49.3 million in the three and six months ended September 30, 2012, respectively, from $22.3 million and $41.7 million in the three and six months ended September 30, 2011, expressing a recovery from the 2011 major Japanese earthquake.

Net losses also decreased for Kinbasha with losses of $391,000 and $2.3 million in the three months and six months ended September 30, 2012 as compared to net losses of $4.7 million and $10.0 million in the three months and six months ended September 30, 2011. This improvement is also generally attributed to improved market conditions after the earthquake.

"It has been a productive quarter and year for Kinbasha as we continue to execute our growth strategies," said Masatoshi Takahama, Chief Executive Officer of Kinbasha Gaming International. "As a management team we are working continuously to improve operations with ongoing favorable improvement to our revenue and cash flow. In addition, we are utilizing the post-earthquake environment to restructure our overall business to generate significant improvements in all aspects of our operations. We believe the decisions we have made will position Kinbasha to continue to grow in our proven markets while concurrently reducing expenses and eliminating select non-performing assets."

Mr. Takahama continued, "We also believe that certain opportunities exist to restructure our debt consistent with our commitment to streamline operations, reduce interest expense while driving revenue and earnings."

In concluding, Mr. Takahama stated, "We also continue to explore additional markets for expansion where we can successfully leverage the Kinbasha brand."

About Kinbasha Gaming International, Inc.

Based in Hitachi City, Japan, Kinbasha Gaming International, Inc. (PINKSHEETS: 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, accounting for approximately $230 billion in annual revenue. For more information on Kinbasha, please visit: www.kinbashainc.com

For comprehensive investor relations material, including fact sheets, multimedia resources, and videos regarding Kinbasha, please follow the appropriate link: Investor Portal, Overview Video and Investor Fact Sheet.

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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Investor Contact: Trilogy Capital Partners - Asia Darren Minton President 212-634-6413 Email Contact