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$1.423 Million Jury Verdict Against Bally Gaming Announced

Olathe, Kansas – Butler National Corporation ($BUKS) (the “Company”) has been awarded total damages of $1,423,542 in litigation against Bally Gaming, Inc. based upon Bally’s negligent misrepresentations in selling a casino management computer system.

The Company’s subsidiary BHCMC, LLC manages the Boot Hill Casino & Resort. BHCMC and BHC Development LC, the build-to-suit lease provider for the Dodge City lottery gaming facility, purchased the SDS/CMP casino management system prior to the opening of the Boot Hill Casino & Resort.

BHCMC and BHC Development filed a complaint against Bally Gaming in the United States District Court for the District of Kansas alleging damages for negligent misrepresentations. After hearing the evidence, the jury rendered a verdict in favor of BHCMC and BHC Development in the amount of $1,423,542. Bally has a right to appeal the verdict.

Bally Gaming had counterclaimed for an alleged breach of contract and an alleged continued use of the system. Bally Gaming alleged damages in excess of $441,000. Bally’s counterclaims were rejected by the jury and no damages were awarded.

“We are pleased with the result and appreciate the jury’s patience in hearing the evidence. The evidence was clear that despite many requests to remedy the number of system problems, Bally Gaming could not make the system work as represented,” commented Clark D. Stewart, President and CEO of Butler National Corporation. “We have spent considerable resources in replacing the Bally system. We believe the $1.423 million verdict is a step toward attempting to make us whole. The replacement Konami SYNKROS™ (KCMS) System now provides Boot Hill Casino with the marketing and administrative functionality that the casino required.”

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