MGT Capital Investments Files Patent Infringement Lawsuit Against Caesars Entertainment, MGM Resorts, WMS Gaming, Penn National

  MGT Capital Investments Files Patent Infringement Lawsuit Against Caesars
  Entertainment, MGM Resorts, WMS Gaming, Penn National Gaming and Aruze
  Gaming

Business Wire

HARRISON, N.Y. -- November 02, 2012

MGT Capital Investments, Inc. (NYSE-MKT: MGT.BC), announced today its
majority-owned subsidiary, MGT Gaming, Inc. (“MGT Gaming”), has filed a
lawsuit claiming patent infringement against multiple companies believed to be
violating MGT Gaming’s UnitedStates Patent No.7,892,088 (“the ‘088 Patent”)
entitled "Gaming Device Having a Second Separate Bonusing Event." The ‘088
Patent is directed to a gaming system in which a second game played on an
interactive sign is triggered once specific events occur in a first game.

The lawsuit, which was filed today in the United States District Court for the
Southern District of Mississippi (Jackson Division), alleges the defendants
Caesars Entertainment Corporation (NASDAQ GS: CZR), MGM Resorts International,
Inc. (NYSE: MGM), WMS Gaming, Inc. - a subsidiary of WMS Industries, Inc.
(NYSE: WMS), Penn National Gaming, Inc. (NASDAQ GS: PENN), and Aruze Gaming
America, Inc. either manufacture, sell or lease gaming systems in violation of
MGT Gaming’s patent rights, or operate casinos that offer gaming systems in
violation of MGT Gaming’s patent rights.

The U. S. Patent and Trademark Office issued the ‘088 Patent in February 2011.
The corresponding patent application was filed in October 2001. The entire
right, title and interest in the ‘088 patent, and all filed continuation
patents, is owned by MGT Gaming, including the right to recover for past
damages for any infringement of the patent. For full patent details, please
refer to the Company’s website at www.mgtci.com, or visitwww.USPTO.gov.

The allegedly infringing products manufactured, distributed, used, sold and/or
offered for sale by defendants include at least those identified under the
trade names: "Pirate Battle," "Reel'em In Compete to Win," "Great and Powerful
Oz," "Battleship," "Clue," and "Paradise Fishing."

In the Complaint, MGT Gaming is seeking preliminary and permanent injunctions
against all defendants enjoining them from any continued acts of patent
infringement, as well as to recover damages adequate to compensate for the
infringement in an amount to be proven at trial, and to recover, in any event,
a reasonable royalty from each defendant for its infringement, trebled, plus
interest and costs as fixed by the court.

Robert A. Rowan, Esq. and Joseph S. Presta, Esq. from Nixon & Vanderhye P.C.,
a nationally recognized IP litigation law firm, are lead counsel for MGT
Gaming. The Rowan and Presta trial team previously won one of the top 50
largest jury verdicts in 2007 against Progressive Gaming (formerly known as
Mikohn Gaming) in a case tried in the United States District Court for the
Southern District of Mississippi.

Commenting on the announcement, Robert Ladd, CEO of MGT Capital Investments,
Inc., stated, "We are pleased to see that the gaming industry has embraced our
patented technology by embedding it in a number of very successful gaming
systems. Moreover, it is gratifying to see that many casino patrons find
enjoyment in playing theses casino games. However, we deserve fair
compensation for their use of our patent. As the cornerstone of our long-term
strategy to create shareholder value, we will vigorously enforce our
intellectual property portfolio against infringement."

About MGT Capital Investments, Inc.

MGT and its subsidiaries are engaged in the business of acquiring and
monetizing intellectual property rights. MGT Gaming, Inc., a majority-owned
subsidiary, owns U. S. Patent No.7,892,088 that relates to casino gaming
systems. In November 2012, MGT Gaming filed a patent infringement suit against
Caesars Entertainment Corporation (NASDAQ GS: CZR), MGM Resorts International,
Inc. (NYSE: MGM), WMS Gaming, Inc. - a subsidiary of WMS Industries, Inc.
(NYSE: WMS), Penn National Gaming, Inc. (NASDAQ GS: PENN), and Aruze Gaming
America, Inc. In addition, the Company owns a majority interest in Medicsight,
Ltd, a medical technology company with patent ownership, as well as operations
in imaging software and hardware devices. The company’s computer-aided
detection software assists radiologists with detection of colorectal polyps,
and has received regulatory approvals including CE Mark and U. S. FDA
clearance.

AboutNixon & Vanderhye P.C.

With more than 25 years of excellence,Nixon & Vanderhye P.C.is a uniquely
structured law firm comprised of 37 highly skilled and experienced
shareholders who provide top quality representation in all aspects of
intellectual property law to a widely diverse client base ranging from single
inventors to the world's leading companies. As an IP boutique, the firm does
not compete based upon size, but rather on expertise and performance; the
result of this focus is that N & V has established itself as one of the
world's top intellectual property law firms for both patent prosecution and
patent litigation. Among other recognition, peers and legal experts have named
N & V as one of the topWashington D.C.area firms for handling complex patent
litigation matters. More information can be found atwww.nixonvan.com

Forward Looking Statements:

This press release contains forward-looking statements. The words or phrases
"would be," "will allow," "intends to," "will likely result," "are expected
to," "will continue," "is anticipated," "estimate," "project," or similar
expressions are intended to identify "forward-looking statements." MGT's
financial and operational results reflected above should not be construed by
any means as representative of the current or future value of its common
stock. All information set forth in this news release, except historical and
factual information, represents forward-looking statements. This includes all
statements about the Company's plans, beliefs, estimates and expectations.
These statements are based on current estimates and projections, which involve
certain risks and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. These risks and
uncertainties include issues related to: rapidly changing technology and
evolving standards in the industries in which the Company and its subsidiaries
operate; the ability to obtain sufficient funding to continue operations,
maintain adequate cash flow, profitably exploit new business, license and sign
new agreements; the unpredictable nature of consumer preferences; and other
factors set forth in the Company's most recently filed annual report and
registration statement. Readers are cautioned not to place undue reliance on
these forward-looking statements, which reflect management's analysis only as
of the date hereof. The Company undertakes no obligation to publicly revise
these forward-looking statements to reflect events or circumstances that arise
after the date hereof. Readers should carefully review the risks and
uncertainties described in other documents that the Company files from time to
time with the U.S. Securities and Exchange Commission.

Contact:

Company Contact:
MGT Capital Investments, Inc.
Robert Traversa, Chief Financial Officer, 914-630-7431
rtraversa@mgtci.com
OR
Investor Contact for MGT Capital Investments, Inc.:
The Del Mar Consulting Group, Inc.
Robert B. Prag, President, 858-794-9500
858-361-1786
bprag@delmarconsulting.com
or
Alex Partners, LLC
Scott Wilfong, President, 425-242-0891
scott@alexpartnersllc.com
 
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