CHICAGO, IL -- (Marketwire) -- 05/06/09 -- Wells-Gardner Electronics Corporation (NYSE Amex: WGA) announced sales of $11.6 million and net earnings of $103,000 or $0.01 per share for the first quarter ending March 31, 2009, which included a non-recurring tax charge of $95,000. This compares with sales of $14.9 million and net earnings of $199,000 or $0.02 per share in the same period in the prior year.

"We are pleased with these net earnings in the first quarter 2009 in this extremely difficult gaming market environment," said Anthony Spier, Wells-Gardner's Chairman and Chief Executive Officer. "This is a significant improvement from our original expectation of a range between a small loss and break-even. Excluding the non-recurring tax charge, the first quarter 2009 earnings would have been essentially the same as the first quarter 2008 net earnings in spite of the sales reduction of $3.3 million or 22 percent. The first quarter sales decline was offset by a combination of three positive trends. Firstly, margins increased to 18.0% from 16.4% in the same period in the prior year due to shedding some less profitable business, improved purchasing, moving more production to China, favorable distribution mix, and a concentration on new lower cost products. Secondly, operating expenses were reduced by almost $300,000 or 14 percent and thirdly interest expense was reduced by $56,000 or 48 percent due to excellent inventory control. However, as we have stated before, our investment in engineering and research & development was not reduced as management regards this as essential to the future prospects of the Company."

"We continue to concentrate on developing new technology and new products. The combined sales of our new 32" LCDs for the amusement industry and the new inverted video gaming products shipped in the first quarter were $530,000 or 6% of first quarter 2009 sales."

"The balance sheet at March 31, 2009 continued to strengthen," said James Brace, Executive Vice President and CFO. "Borrowings of $4.2 million represent a reduction of $1.4 million from the borrowings of $5.6 million at March 31, 2008. This decline in debt was driven by an inventory reduction of close to $2 million offset by a reduction in trade payables. The Company's debt/equity ratio continues to decline and is now under 30 percent compared to 37 percent at year end 2008. The Company was in compliance with all bank covenants."

Outlook

2009 is expected to be a challenging year for the gaming industry. The Company continues to expect 2009 sales to be between $50 million and $54 million. Management is cautiously optimistic as the Company has developed several new products including 3D products, inverted video products, low cost 19", 26", 32" and 42" LCDs for the amusement market, and 19" CGA LCDs for the Class II gaming market that are expected to generate additional revenue. In addition management has already taken several proactive steps to continue to control expenses.

Founded in 1925, Wells-Gardner Electronics Corporation is a distributor and manufacturer of color video monitors and other related distribution products for a variety of markets including, but not limited to, gaming machine manufacturers, casinos, coin-operated video game manufacturers and other display integrators. The Company has the majority of its LCDs and CRT monitors manufactured in Mainland China. In addition, the Company's American Gaming & Electronics, Inc. subsidiary ("AGE"), a leading parts distributor to the gaming markets, sells parts and services to over 700 casinos in North America with offices in Las Vegas, Nevada, Egg Harbor Township, New Jersey, Miami, Florida and McCook, Illinois. AGE also sells refurbished gaming machines on a global basis as well as installs and services some brands of gaming machines in casinos in North America.

This press release contains forward-looking statements within the meaning of the federal securities laws. Those statements include statements regarding the intent, belief or expectations of the Company and its management. Readers are cautioned that the forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, and that actual results could differ materially from those expressed in any forward-looking statement. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, but are not limited to, development of competing technologies, availability of adequate credit, interruption or loss of supply from key suppliers, increased competition, the regulatory process and regulatory and legislative changes affecting the gaming industry. Wells-Gardner assumes no obligation to update the information contained in this release to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events. For additional investor information, please contact Jim Brace - Wells-Gardner at (708) 290-2120 or Alan Woinski - Gaming USA Corporation at (201) 599-8484.

WELLS-GARDNER ELECTRONICS CORPORATION
Condensed Consolidated Statements of Earnings (unaudited)
Three Months Ended March 31, 2009 and 2008


                                              Three Months Ended March 31,
                                              -----------------------------
                                                  2009           2008
                                              -------------- --------------
Net sales                                     $   11,604,000 $   14,916,000
Cost of sales                                      9,521,000     12,475,000
                                              -------------- --------------
Gross margin                                       2,083,000      2,441,000
Engineering, selling & administrative
 expenses                                          1,819,000      2,114,000
                                              -------------- --------------
Operating Earnings (Loss)                            264,000        327,000
Interest expense                                      58,000        114,000
Investment in Joint Venture                                -              -
Other (income) expense, net                           93,000          1,000
Income Tax expense                                    10,000         13,000
                                              -------------- --------------
Net Earnings (Loss)                           $      103,000 $      199,000
                                              ============== ==============

Earnings per share:
Basic earnings per share                      $         0.01 $         0.02
Diluted earnings per share                    $         0.01 $         0.02

Basic average common shares outstanding           10,405,313     10,345,027
Diluted average common shares outstanding         10,405,313     10,345,632

** See acccompanying notes to the unaudited condensed consolidated
   financial statements.