KNBA Kinbasha Gaming International Inc (CE)

Kinbasha
Gaming International, Inc. Announces
Introduction of Lower Denomination Slot Machines in Tokyo Metro Area 

Parlors in Shinjuku and Fuchu Increased Gross
Wagers by Offering Players Slot Machines That Accept 5 Yen Tokens 

HITACHI, Japan — May 20, 2013
— Kinbasha Gaming
International, Inc.  (OTCQX: KNBA), owner
and operator of retail pachinko gaming centers in Japan, today announced
that it has successfully introduced lower denomination slot machines at two of
its parlors in the Tokyo Metropolitan Area. 
Gross wagers at the company's locations in Shinjuku and Fuchu have
increased due to the fact that customers have the opportunity to play slots using
5 yen tokens, as opposed to standard 20 yen machines.

Kinbasha’s
parlor in Shinjuku started accepting 5 yen tokens at 17% of its 210 slot
machines in March.  Its parlor in Fuchu
introduced 5 yen slots at 14% of its 196 slot machines in April.  These parlors introduced the new lower
denomination slots through a promotional “5 Yen Slot Corner” at each location.  Kinbasha also has 5 yen slot machines at
eight other locations outside Tokyo.

“The introduction of 5 yen slot machines at two of our
parlors in the greater Tokyo area has been a great success,” said Masatoshi Takahama, Chief Executive Officer. “The
lower denomination machines are attractive because they provide both new and
inexperienced players more opportunities to hit the jackpot on a lower budget.  As a result, slot machine occupancy rates and
gross wagers are up at both locations.”

At
current exchange rates, the standard 20 yen Japanese slot machine equates to
about 20 cents to spin the reels. 
Likewise, a 5 yen Japanese slot machine is similar to a Las Vegas nickel
slot machine.

In
Japan, a generation of younger players, as well as retirees who are new to
gaming, are attracted to the 5 yen machines.  There is less risk of losing a significant sum
of money and players can enjoy the entertainment value of the game at a lower
cost.

Japan
is the world's largest market for slot machines with an installed base of
approximately 1.4 million slot machines.  In comparison, the United States only has an
installed base of approximately 853,000 “gaming machines” according to the
American Gaming Association, and this figure includes not only slot machines,
but other gaming devices, such as video poker. 
This equates to a Japanese market for slot machines that is almost two
times larger than the United States market.

Japanese
slot machines are similar to Las Vegas three reel slot machines, with the
exception that each reel on the Japanese machine can be independently stopped
by the player.

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

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

Kinbasha
shares are listed on the OTCQX. 
Investors can access free, real-time Level 2 quotes for the company at: www.otcmarkets.com/stock/KNBA/quote

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.

Investor
Contact:

Trilogy Capital Partners - Asia
Darren Minton, President
212-634-6413
info@trilogy-capital.com

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