Shuffle Master reports Macau malfunctions

This action followed a complaint to DICJ inspectors by a player at Starworld claiming a win of HKD42 million on a Stargames stand-alone slot machine. As a result of the player complaint and the subsequent DICJ action, the Company immediately initiated an independent investigation through Gaming Laboratories International, which determined that the machine malfunction was related to a ticketing anomaly and that there was no legitimate player win. On September 13, the DICJ ruled that the player initiating the complaint was not entitled to the "win". Shuffle Master is currently aware of one additional incident of the same malfunction, and currently expects that a similar determination will be made on the second incident. To the best of the Company's knowledge, the potential for this ticket-based malfunction is limited to the Stargames slot machines in Macau.