“This
is a significant event which wipes out $6 million in debt,” said Masatoshi
Takahama, Chief Executive Officer of Kinbasha. “This demonstrates Kinbasha’s
ability to reduce its debt through negotiations with our lenders.”

Since
2006, Kinbasha has worked with its lenders and in many cases has obtained
forbearances and loan modifications that have allowed the company to
effectively extend the maturity of its debt through interest only and/or
reduced principal payments, generally negotiated on a six month or annual
basis. 

Mr.
Takahama continued, “We look forward to
continuing our debt settlement initiatives while simultaneously improving our
financial position.  As we continue to realize new operational milestones, we
remain highly focused on improving our financial metrics on all fronts, and
carrying forward with our expansion initiatives in Japan.”

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

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