WMS Gaming to Establish Technology Campus At Chicago Facility; Will Move, Consolidate Corporate Headquarters, Manufacturing, Warehousing to Waukegan
 

CHICAGO & WAUKEGAN, Ill.
Aug. 25, 2000
 

WMS Industries Inc (NYSE:WMS) announced today that in an effort to
support the continued growth of its gaming business and achieve
greater operating efficiencies, it will convert its 130,000 square
foot corporate headquarters and manufacturing facility on Chicago's
North Side to a creative technology campus where the company will
conduct all engineering, graphic design and game development
functions. WMS will shift its corporate headquarters and manufacturing
operations from the 3401 North California Avenue location to its
existing facility in Waukegan, Illinois where it will perform all of
the manufacturing of its video and reel spinning slot machine lines
and video lottery terminals. Additionally, two leased regional gaming
device warehousing and distribution centers in Illinois will be
consolidated into the state-of-the-art 236,000 square foot, five
year-old manufacturing facility in Waukegan owned by WMS.
    The opportunity to move to the Waukegan facility results from the
previously announced discontinuance of WMS' contract manufacturing
relationship with Midway Games Inc. (NYSE:MWY). The Company plans to
move its corporate headquarters and to completely transition
manufacturing and warehousing functions to Waukegan by the end of this
calendar year and expects to complete renovation of the engineering
and design center in Chicago by the end of next year. The Company
anticipates recording $0.07 to $0.09 per share of unusual charges
related to these decisions during fiscal 2001. These unusual charges
are expected to be partially offset by greater productivity and
operating cost efficiencies realized upon the completion of the
relocation.
    Brian R. Gamache, President and Chief Operating Officer of WMS
commented on the plan, "These moves are intended to produce cost
savings by eliminating our reliance on rented facilities and
consolidating all of the Company's manufacturing, warehousing and
distribution operations at one location while dramatically improving
our manufacturing capacity. The consolidation effectively and
efficiently addresses potential manufacturing constraints at our
current manufacturing facility, allowing WMS to seamlessly meet the
strong and growing demand for WMS gaming devices.
    "We also are quite excited about maintaining WMS' strong presence
in Chicago, our home town, with the establishment of what we believe
will be the industry's most advanced design and engineering facility.
We are creating this state-of-the art center for our fast growing
research and development teams in a conducive setting and regional
locale which will be attractive to the best talent in the country. By
striving to create the industry's most advanced design and engineering
facility, WMS will further enhance its 'employer of choice' reputation
by providing a stimulating environment and excellent corporate culture
committed to product innovation and quality."

    This press release contains certain forward-looking statements
concerning future business conditions and the outlook for the Company
based on currently available information that involve risks and
uncertainties. The Company's actual results could differ materially
from those anticipated in the forward looking statements as a result
of certain risks and uncertainties, including, without limitation, the
financial strength of the gaming industry, the expansion of legalized
gaming into new markets and legislative and regulatory changes in
existing gaming markets, the development, introduction and success of
new games and new technologies and the ability to maintain the
scheduling of such introductions, the ability of the Company to
qualify for and maintain gaming licenses and approvals, the outcome of
certain legal proceedings to which the Company is a party and other
risks more fully described under "--Factors Affecting Future
Performance" in the Company's Annual Report on Form 10-K.

    WMS Industries Inc. is engaged in the design, manufacture and sale
of gaming devices and video lottery terminals.

             WMS Industries Inc., Chicago
             Orrin J. Edidin, Esq.
             Executive Vice President and General Counsel
             Molly D. Sandberg
             Manager, Media Relations
             773/961-1111
                or
             Jaffoni & Collins Incorporated, New York
             Joseph N. Jaffoni, Richard Land
             212/835-8500 or wms@jcir.com
 
 

Gamingfloor.com