BGI, Inc. Readies for July Beta Launch of Its 'Virtual Sweepstakes' Engine.

AUSTIN, Texas, June 29 /PRNewswire/ --

Thomas B. Murphy, President of BGI, Inc. (OTC Bulletin Board: BGII) announced today that he was shifting the Company's resources to prepare for the impending launch of their new Internet business site. This reorganization has resulted in a staff reduction of 30%, realignment of the remaining staff in preparation of the roll out and sharpened focus on increasing sales in the Company's physical business.

"I have shifted our focus to completing an invigorated business plan and the Beta test of our Internet sweepstakes site, which is in the final stages of development. In order to bring BGII to profitability and increase shareholder value, I have taken a hard look at staffing, corporate organization and our sales effort. We have downsized the size of the staff and are evaluating every other line item on the expense side to minimize cash outflow. Significant emphasis is being placed on the sales effort by redirecting the energies of our customer support representatives and technical staff. Weekly executive reviews of both sales activities and financial performance measure results against projections. Each employee has been challenged to become more efficient and productive in this effort. I am optimistic about the future of the Company through streamlining the operation of our core business and bringing the Internet sweepstakes site to fruition," stated Murphy.

Rhonda McClellan resigned as the Company's Chief Financial Officer and Treasurer on June 8th. Mr. Alton Withers has been hired as interim CFO to evaluate the financial and accounting functions of the company, to implement more timely and complete reporting procedures for closer scrutiny, and to advise Mr. Murphy on financial matters. Mr. Withers has over twenty years of experience as an entrepreneurial financial executive in management including fourteen years with two major publicly held retailers, as well as CFO for a startup software design firm and owner of his own retail chain venture. He also spearheaded the reorganization and financial turnaround of Wickes Furniture.

Based in Austin, Texas, BGI, Inc. is a leading provider of instant cash sweepstakes games in the United States. Promoting the sale of prepaid phone cards with its stand alone Lucky Strike Prepaid Phone Card Dispensers featuring an instant win sweepstakes has provided the Company with the proprietary knowledge to take this marketing concept to the Internet. BGII has been publicly traded and fully reporting since December, 1994.

These statements made by BGI, Inc. (BGII) may be forward looking in nature, particularly as related to the business plans of the Company within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934, and are subject to the safe harbor created by these sections. Actual results may differ materially from projected statements. BGII believes that its primary risk factors include, but are not limited to the need for substantial financial requirements; the need to develop effective internal processes and system; changes in the overall economy; continued and future strategic alliances; changes in technology, the number and size of competitors and the mix of products and services offered in its markets; and changes in the law and regulatory policy.

For additional information on BGI, Inc. contact Reid Funderburk (rfund@bgicorp.com) at 888-338-0065 or visit the company's website at www.bgicorp.com.