Elixir Gaming Technologies, Inc.

Elixir Gaming Technologies Provides Update on Venue Improvement Initiatives and Reports Third Quarter 2008 Results

Dolphin Division Secures City of Dreams RFID Chip Order Valued at Approximately US$2.7 Million

Las Vegas, Nevada – November 13, 2008 - Elixir Gaming Technologies, Inc. (AMEX:EGT) (“Elixir Gaming” or “the Company”), a leading technology and solutions provider to the Pan-Asian gaming industry, today reported operating results for the third quarter ended September 30, 2008 and reviewed recent corporate progress.

Clarence Chung, Chairman and Chief Executive Officer of Elixir Gaming, commented, “Our third quarter results reflect the initiatives implemented over the past several months aimed at generating improvements in the performance of our installed base of electronic gaming machines as well as some early benefits from cost savings measures recently enacted. Our focus remains on maintaining machines in venues where we can generate attractive returns for the Company. In this regard, we continue to review and analyze all of the facilities where we’ve made placements and eliminate under-performing venues while simultaneously adding new, high-quality venues. In addition, in Cambodia, Elixir Gaming is proactively assuming greater operating responsibilities with venue owners where we believe performance can be significantly improved and are evolving our business model towards becoming an operating partner at certain venues. We believe that our multi-faceted approach to fortifying our existing installed base will generate further improvements in our operating results going forward.

“Last week, Elixir Gaming entered into new agreements with Elixir Group and Elixir International, which significantly benefit our balance sheet and liquidity, reduce our operating costs, and eliminate the potential for a meaningful dilution of our shareholders. With these agreements in place, our existing cash balance and our strategic relationships, the Company has improved financial flexibility to source games to further grow our installed base of units and identify opportunities to expand into high-quality new gaming venues.

“Simultaneous with our evaluation of new opportunities to further our growth in the Asia-Pacific region, we continue to carefully analyze the results and operations of venues where we’ve already placed gaming machines. Based on this recent analysis, we are confident that these facilities are capably positioned to achieve attractive and sustainable long-term results. Nonetheless, the Company will continue to evaluate its operating improvement strategies at each facility on a regular basis.”

Elixir Gaming’s Dolphin division recently secured an order to supply RFID gaming chips for Melco Crown Entertainment’s (NASDAQ: MPEL) much-anticipated new City of Dreams casino resort in Macau. The order, for over one million RFID gaming chips, is valued at approximately AU$4.2 million (US$2.7 million). Elixir Gaming expects to record this revenue in the 2009 second quarter period. City of Dreams, located in Cotai, is expected to open in the first half of 2009 and will be an integrated urban entertainment resort featuring a 420,000 square foot casino with over 500 gaming tables and 1,500 gaming machines.

Fourth Quarter 2008 and 2009 Operating Expectations

Mr. Chung concluded, “With a healthy pipeline for new unit installations, a much improved balance sheet, a materially reduced annualized cost structure in 2009 compared to 2008 and programs centered on improving returns from our current operations, Elixir Gaming is better positioned to realize the potential of its unique and attractive business model. We will continue to focus on leveraging our established and growing Asia-Pacific market presence and developing additional key relationships to deliver increased value to our shareholders.”

Q3 Financial Review

Revenues from gaming machines on participation were approximately $1.1 million in Q3 2008 compared to revenues of $0.8 million in Q2 2008 and $0.5 million in Q1 2008. Elixir Gaming’s 2008 third quarter total revenues of $3.6 million represent an increase of $0.8 million when compared to total revenues of $2.8 million for the third quarter of 2007.

For the third quarter of 2008, Elixir Gaming reported a net loss of $7.3 million, or ($0.06) per share, on a weighted average share count of 114.9 million shares compared to a net loss for the third quarter of 2007 of $213.7 million, or ($4.67) per share, on a weighted average share count of 45.8 million shares, which reflected several significant non-cash, non-operating charges related to the Company’s Securities Purchase and Product Participation Agreement and the change in business strategy associated with this agreement. SG&A for the 2008 third quarter period, without the effect of non-cash stock-based compensation expense, was $3.9 million, an increase of $1.9 million from the year-ago period and a decrease of $0.3 million from the 2008 second quarter period.

Elixir Gaming is hosting a conference call and simultaneous webcast at 8:30 a.m. ET today, November 13, both of which are open to the general public. The conference call number is 212/676-5390 or 415/537-1979. Questions and answers will be reserved for call-in analysts and investors. Interested parties may also access the live call on the Internet at www.elixirgaming.com; please allow 15 minutes to register and download and install any necessary software. Following its completion, a replay of the call can be accessed for thirty days on the Internet at www.elixirgaming.com.

Forward Looking Statements

This press release contains forward-looking statements concerning Elixir Gaming, Elixir Group and Elixir International within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those forward-looking statements include statements regarding expectations for the business of Elixir Gaming, its working capital requirements and future revenue and profitability. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, risks related to Elixir Gaming’s inability to place gaming machines at significant levels, whether the gaming machines placed generate the expected amount of net-win, the ability of Elixir Gaming to acquire additional capital as and when needed, the ability of Elixir Gaming to collect revenue and protect its assets and those other risks set forth in Elixir Gaming’s annual report on Form 10-K for the year ended December 31, 2007 filed with the SEC on March 31, 2008 and our Form 10-Q for the three months ended September 30, 2008 to be filed on November 14, 2008. Elixir Gaming cautions readers not to place undue reliance on any forward-looking statements. Elixir Gaming does not undertake, and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.

Elixir Gaming:                                                                   Investors:
Traci Mangini                                                                    Richard Land, Dave Jacoby
SVP, Corporate Finance                                                   Jaffoni & Collins Incorporated
702/617-4741                                                                 212/835-8500; egt@jcir.com

Elixir Gaming Technologies
Consolidated Statement of Operations
(Unaudited)

		Three Months Ended September 30,				Nine Months Ended September 30,
		2008		2007		2008		2007
Revenues:
Gaming machine participation	$	1,109,144	$	131,356	$	2,396,673	$	131,356
Table game products		417,304		1,014,001		1,667,806		4,652,980
Non-gaming products		2,084,950		1,669,445		6,146,407		4,830,170
		3,611,398		2,814,802		10,210,886		9,614,506
Operating costs and expenses:
Cost of gaming machine participation		2,701,113		156,645		6,299,055		156,645
Cost of table game products		507,512		891,840		1,431,859		3,835,156
Cost of non-gaming products		1,791,863		1,782,129		5,262,733		4,926,980
Selling, general and administrative		5,338,206		6,381,386		17,218,671		13,443,365
Impairment of assets		―		29,609,085		1,368,829		29,609,085
Participation acquisition fees		―		175,070,000		―		175,070,000
Research and development		178,243		328,981		777,552		739,612
Depreciation and amortization		310,886		71,632		779,922		726,030
Restructuring charges		―		1,622,532		168,276		1,622,532
		10,827,823		215,914,230		33,306,897		230,129,405
Loss from operations		(7,216,425)		(213,099,428)		(23,096,011)		(220,514,899)
Other income (expense):
Interest expense and finance fees		(290,355)		(512,290)		(564,876)		(1,820,034)
Interest income		107,420		(404)		629,606		102,755
Foreign currency gain/(loss)		(3,100)		(9,340)		638,427		(9,340)
Other		85,556		(379,175)		245,851		15,744
		(100,479)		(901,209)		949,008		(1,710,875)
Income tax benefit/(expense)		―		347,573		(22,498)		347,573
Net loss	$	(7,316,904)	$	(213,653,064)	$	(22,169,501)	$	(221,878,201)
Basic and diluted loss per share	$	(0.06)	$	(4.67)	$	(0.19)	$	(5.88)
Weighted average common shares outstanding		114,946,671		45,780,514		114,945,602		37,765,328

		September 30, 2008		December 31, 2007
ASSETS		(Unaudited)
Current assets:
Cash and cash equivalents	$	17,844,228	$	68,286,820
Current portion of accounts receivable, trade, net of allowance for uncollectibles of $440,339 and $176,666		3,051,809		1,689,909
Other receivables, net of allowance for uncollectibles of $25,042 and $0		674,756		298,940
Inventories		1,343,539		1,686,670
Prepaid expenses and other current assets		672,069		975,549
		23,586,401		72,937,888

Accounts receivable, trade, net of current portion		―		60,421
Gaming machines and systems, net of accumulated depreciation of $5,964,544 and $569,926		60,882,056		39,193,962
Property and equipment, net of accumulated depreciation of $3,331,318 and $3,039,933		4,392,560		3,934,532
Intangible assets, net of accumulated amortization of $2,189,477 and $1,689,096		4,985,939		5,486,321
Goodwill		84,210		84,210
Prepaid commissions		―		1,398,800
Deposits and other assets		4,203,181		617,894
	$	98,134,347	$	123,714,028

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	1,439,220	$	1,798,459
Amount due to related party		13,524,455		29,601,448
Note payable to related party, current portion		7,444,409		―
Accrued expenses		2,885,824		5,248,458
Short-term debt		16,239		31,893
Capital lease obligations, current portion		255,277		480,663
Customer deposits		213,043		197,019
		25,778,467		37,357,940

Capital lease obligations, net of current portion		669,916		916,444
Note payable to related party, net of current portion		4,624,727		―
Other liabilities		388,294		99,966
Deferred tax liability		966,744		1,051,745
		32,428,148		39,426,095
Stockholders' equity:
Common stock, $0.001 par value, 300,000,000 shares authorized; 114,956,671 and 114,914,934 shares issued and outstanding		114,957		114,916
Additional paid-in-capital		417,236,476		411,323,072
Accumulated other comprehensive income		(1,919,334)		406,358
Accumulated deficit		(349,725,900)		(327,556,413)
		65,706,199		84,287,933
	$	98,134,347	$	123,714,028

Conference Call: Today, November 13 at 8:30 a.m. ET Dial-in numbers: 212/676-5390 or 415/537-1979 Webcast: www.elixirgaming.comReplay information provided below

Fourth Quarter 2008 and 2009 Operating Expectations

Conference Call: Today, November 13 at 8:30 a.m. ET
Dial-in numbers: 212/676-5390 or 415/537-1979
Webcast: www.elixirgaming.com
Replay information provided below