Achieves Fiscal Year Record $1.15 Diluted EPS on Annual Revenues of

$650 Million

Initiates Fiscal 2009 Revenue Guidance of $712-to-$728 Million and an

18.0%-to-18.5% Operating Margin

Expands Share Repurchase Program by $100 Million

WAUKEGAN, Ill.–(EMWNews)–WMS Industries Inc. (NYSE:WMS), a leading designer, manufacturer and

marketer of gaming machines for the global gaming industry, today

reported record financial results for its Fiscal 2008 fourth quarter and

full year ended June 30, 2008.

Fiscal 2008 Fourth Quarter Highlights:

• Total revenues grew 17% to a quarterly record $185.6 million and net

  income increased $4.9 million to a quarterly record $21.6 million or

  $0.36 per diluted share

• Product sales revenues reached a quarterly record $122.0 million, as

  new unit shipments globally rose to 8,180 gaming machines and, for the

  first time in Company history, product sales gross margin was 50%

• Gaming operations revenues rose 33%, reflecting a 13% increase in

  average daily revenue to $68.13 per unit and 13% growth in the ending

  installed participation base to 9,321 units

• Total gross profit margin rose to 60% and operating margin rose to 18%

• Adjusted EBITDA, a non-GAAP financial metric, rose 31% to a quarterly

  record $67.1 million (see reconciliation to net income schedule at the

  end of this release)

Fiscal 2008 Full Year Highlights:

• Total revenues grew 20% to a record $650.1 million, and net income

  rose 38% to a record $67.5 million, or $1.15 per diluted share

• Global unit shipments grew 9% to 27,931 gaming machines and the

  average installed base of participation gaming machines rose 20% or

  1,472 units to 8,771 units

• Total gross profit margin increased 290 basis points to 59%

• Operating margin increased 240 basis points to 16% and operating

  income increased $30 million or 41% to a record $104.4 million

• Cash flow from operations rose 57% to a record $186.2 million

• Adjusted EBITDA, a non-GAAP financial metric, rose 31% to a record

  $220.9 million (see reconciliation to net income schedule at the end

  of this release)

“WMS’ record new

unit shipments and gaming operations revenues for the fiscal 2008 fourth

quarter and full year periods underscore the continued strength and

industry appeal of our innovative, differentiated product portfolio and

put a strong exclamation mark on our results for Fiscal 2008. In

addition to shipping more units around the globe than in any other

quarterly period, we achieved a record average selling price of $13,147.

Compared to March 31, 2008, we added nearly 300 units to our installed

base of participation games and saw our average daily revenue per unit

increase by 6% on a quarterly sequential basis. These metrics are clear

evidence that our focus on creating unique, technology-enabled gaming

experiences is strongly embraced by players and our casino customers

worldwide. Record revenues coupled with our ability to continue

enhancing margins through improved operating effectiveness led to record

quarterly and annual net income and operating cash flow, even as we

continued to increase our R&D spending and other operating initiatives

to drive increased long-term stockholder value,”

said Brian R. Gamache, Chairman and Chief Executive Officer.

“Reflecting our expectations for continued

profitable growth, we are initiating fiscal 2009 total revenue guidance

of a range of $712-to-$728 million, or 10%-to-12% growth over fiscal

2008 revenues, and fiscal 2009 first quarter revenue guidance of

$145-to-$150 million. Our ability to overcome a challenging replacement

cycle and soft economy in North America reflects the player popularity

and solid global demand for our products, which consistently generate

high returns for our casino customers. In addition, we expect the

leverage from higher revenues coupled with our ongoing focus on

operating execution and excellence will lead to an average operating

margin of 18%-to-18.5% for fiscal 2009, an annual improvement

commensurate with the increase achieved in each of our last two fiscal

years.”

Fourth Quarter Financial Review

Fiscal 2008 fourth quarter net income rose 29% to a quarterly record

$21.6 million, or $0.36 per diluted share, inclusive of the impact from

a higher income tax rate amounting to $0.02 per diluted share and a $3.7

million pre-tax write-down to net realizable value, or $0.04 per diluted

share, related to a licensed technology, compared with $0.29 in the June

2007 quarter. WMS’ total revenues increased

17%, or $27.6 million, to $185.6 million for the quarter ended June 30,

2008, compared to $158.0 million in the June 2007 quarter. The following

table summarizes the key components related to revenue generation for

the three and twelve months ended June 30, 2008 and 2007 (in millions,

except unit, per unit and per day data):

		Three Months Ended June 30,								Twelve Months Ended June 30,
		2008				2007				2008				2007
Product Sales Revenues:
New unit sales revenues		$	107.5			$	96.0			$	358.0			$	317.0
Other product sales revenues			14.5				14.0				63.2				49.3
Total product sales revenues		$	122.0			$	110.0			$	421.2			$	366.3
New units sold			8,180				7,555				27,931				25,613
Average sales price per new unit		$	13,147			$	12,696			$	12,817			$	12,378
Gross profit on product sales revenues (1)		$	60.5			$	53.4			$	203.9			$	167.7
Gross margin on product sales revenues (1)			49.6	%			48.5	%			48.4	%			45.8	%

(1) As used herein, gross profit and gross margin exclude depreciation expense.

		Three Months Ended June 30,								Twelve Months Ended June 30,
		2008				2007				2008				2007
Gaming Operations Revenues:
Participation revenues		$	56.3			$	42.4			$	203.4			$	153.6
Other gaming operations revenues			7.3				5.6				25.5				19.9
Total gaming operations revenues		$	63.6			$	48.0			$	228.9			$	173.5
WAP games at period end			1,820				1,507				1,820				1,507
LAP games at period end			2,134				2,333				2,134				2,333
Stand-alone games at period end			5,367				4,436				5,367				4,436
Total installed participation base at period end			9,321				8,276				9,321				8,276
Average participation installed base			9,074				7,719				8,771				7,299
Average revenue per day per participation machine		$	68.13			$	60.49			$	63.34			$	57.66
Installed casino-owned daily fee games at period end			819				760				819				760
Average casino-owned daily fee games installed base			816				713				776				728
Gross profit on gaming operations revenues(1)		$	51.2			$	37.8			$	182.3			$	137.3
Gross margin on gaming operations revenues(1)			80.5	%			78.8	%			79.6	%			79.1	%
Total Revenues		$	185.6			$	158.0			$	650.1			$	539.8
Total Gross Profit		$	111.7			$	91.2			$	386.2			$	305.0
Total Gross Margin			60.2	%			57.7	%			59.4	%			56.5	%

(1) As used herein, gross profit and gross margin exclude depreciation expense

New unit sales revenues for the June 2008 quarter increased 12%, or

$11.5 million, to $107.5 million compared to $96.0 million in the

year-ago period, reflecting the benefit from new casino openings and

expansions, as well as ongoing global market share gains. Total new unit

shipments grew year over year to a quarterly record 8,180 gaming

machines, led by a 10% increase in North American shipments to 5,721

units, including a solid contribution from mechanical-reel products.

International new unit shipments also increased year over year to 2,459

units compared with strong June 2007 unit shipments that totaled 2,379

gaming machines. International unit shipments represented 30% of total

new units sold in the June 2008 quarter on the increased number of total

units shipped, compared with 31% of new units sold in the prior year.

More than 2,500 mechanical reel products were sold globally in the June

2008 quarter, or 31% of total new units, compared to 21% in the prior

year quarter. The average selling price of new gaming machines reached a

record $13,147, reflecting recent list price increases for our Bluebird®

product line partially offset by a slightly lower number of

premium-priced gaming machines sold year over year.

Other product sales revenues increased modestly over the prior-year

period to $14.5 million, reflecting higher revenues from conversion

sales partially offset by lower sales of parts and top boxes.

Quarterly gaming operations revenues exceeded $60 million for the first

time, growing 33% or $15.6 million to $63.6 million in the June 2008

quarter compared with $48.0 million in the year-ago period. The June

2008 quarterly results reflect an 18% year-over-year increase in the

average installed base to 9,074 participation units and a 13% increase,

or $7.64, in the average revenue per day to a record $68.13 per unit.

The average daily revenue also increased 6% on a quarterly sequential

basis from $64.25 in the March 2008 quarter, reflecting the high play

levels and strong performance of our newer gaming machine placements and

the historical favorable seasonality experienced in our business, which

more than offset the impact of the soft economy. The installed base of

participation gaming machines at June 30, 2008 increased 294 units on a

quarterly sequential basis to 9,321 units, primarily reflecting the

launch of new installments on our Community Gaming™

and Transmissive Reels™ participation

platforms in the June quarter.

Gamache commented, “We expect to realize

continued growth in gaming operations revenues in the September 2008

quarter with the launch last month of our fourth foundational technology

platform, Adaptive Gaming™ featuring

the STAR TREK™ game, as well as the

newest installment for our “Sensory Immersion”

platform with a CLINT EASTWOOD® DIRTY

HARRY® game.”

Total gross profit, as used herein excluding depreciation expense,

increased 22%, or $20.5 million, to $111.7 million for the June 2008

quarter from $91.2 million in the year-ago period; and total gross

margin improved by 250 basis points to 60.2%. Gross margin on product

sales revenues increased by 110 basis points to 49.6% compared with

48.5% in the year-ago period, reflecting continued success with the

ongoing implementation of the Company’s lean

sigma process improvement and strategic sourcing initiatives, along with

the benefits from increased unit volumes and higher average selling

prices. Gross margin on gaming operations was 80.5% in the June 2008

quarter, up from 78.8% in the year-ago period, reflecting favorable

jackpot experience despite the greater number of Wide-Area Progressive

(WAP) gaming machines in the installed participation base.

Research and development expenses of $26.1 million, or 14.1% of total

revenues, for the June 2008 quarter were $9.2 million or 54% higher than

the June 2007 quarter and increased $6.6 million on a quarterly

sequential basis. The year-over-year increased spending relates to:

• A $3.7 million pre-tax write-down to net realizable value, or $0.04

  per diluted share, related to a licensed technology;

• Expanded development initiatives for the continued creation of

  intellectual property and the ongoing expansion of the Company’s

  product portfolio;

• Higher payroll-related costs resulting from both headcount increases

  and performance-based incentives associated with improved operating

  performance;

• Higher costs to accelerate new systems and enterprise-wide system

  applications for WMS’ WAGE-NET™

  enabled suite of innovative, high-value products in preparation for

  the advent of server-enabled, networked gaming; and

• The addition of the research and development expenses of Systems in

  Progress (“SiP”),

  which was acquired in July 2007.

Selling and administrative expense, which includes costs of

distribution, were $34.1 million, or 18.4% of total revenues, in the

June 2008 quarter compared with $31.6 million, or 20.0% of total

revenues, in the year-ago period and $34.0 million, or 19.7% of total

revenues, in the March 2008 quarter. The year-over-year increased

spending reflects:

• Higher payroll-related costs associated with headcount increases

  during the past twelve months to support international expansion and

  the overall growth in the Company’s

  business, including higher spending on customer service and field

  operations support activities to sustain increased customer touch

  points and WMS’ larger installed

  participation base, as well as performance-based incentives associated

  with improved operating performance;

• Higher regulatory, legal and bad debt expenses; and

• The impact of consolidating SiP results since July 2007.

Depreciation expense increased $1.2 million, or 7%, to $17.6 million in

the June 2008 period, primarily reflecting WMS’

continued investment in its growing gaming operations business, as

evidenced by the 18% year-over-year increase in the average installed

base of participation gaming machines, partially offset by a growing

number of base units that have been depreciated down to their residual

value.

The effective income tax rate increased to 37% for the June 2008 quarter

compared with 34% a year ago, principally reflecting the expiration of

the research and development tax credit legislation at the end of

December 2007 and our improved operating profitability.

The Company generated record cash flow from operating activities of

$186.2 million in fiscal 2008, up 57% from fiscal 2007, including a

quarterly record $59.8 million in cash flow from operating activities

generated in the June 2008 quarter. The improvement in the twelve-month

period reflects increased net income, higher depreciation, amortization

and other non-cash items, coupled with a favorable movement in changes

in operating assets and liabilities compared with the prior-year period

as a result of the Company’s effort to

increase inventory turns and reduce days sales outstanding. Net cash

used in investing activities in fiscal 2008 decreased year over year

reflecting improved efficiency of capital deployed in WMS’

gaming operations business, with $25.5 million lower additions to gaming

operations equipment compared with the prior year. The prior year also

included the acquisition of Orion Gaming. WMS’s

fiscal 2008 fourth quarter adjusted EBITDA rose 31% over the prior-year

period to a quarterly record $67.1 million.

Share Repurchase Program Status

In the June 2008 quarter, the Company repurchased approximately $25

million of its common stock, or 763,190 shares at an average price of

$32.75. During the fiscal year ended June 30, 2008, the Company

repurchased a total of 1.2 million shares at an average price of $33.08

for an aggregate consideration of approximately $40 million. Since the

initiation of its share repurchase program in 2002, WMS has repurchased

approximately 6.6 million shares, or 12% of its shares outstanding, at

an average price of approximately $14.02 per share, for a total of

approximately $92.5 million.

The Board of Directors of WMS Industries expanded the Company’s

share repurchase authorization by an additional $100 million and

extended the expiration date of the authorization to August 4, 2010. WMS

had approximately $10 million remaining under its prior repurchase

authorization and, after giving effect to today’s

announcement, WMS now has a total open authorization of approximately

$110 million.

“With our continued operating success and an

increasing level of free cash flow, the Board is committed to returning

value to stockholders through share repurchases. The Board proactively

acted ahead of completing the existing $50 million authorization, so the

Company can continue to pursue share repurchases as market conditions

warrant,” said Brian R. Gamache, Chairman and

Chief Executive Officer. “Reinvesting in WMS’

future through additional share repurchases is consistent with our focus

on building long-term sustainable stockholder value and complements our

numerous organic growth opportunities.”

Pursuant to the authorization, WMS may purchase shares from time to time

in the open market, through block purchases or in privately negotiated

transactions in accordance with Company policies and applicable

securities laws. The actual number of shares to be purchased will depend

upon market conditions. All shares purchased will be held in the Company’s

treasury for possible future use. As of June 30, 2008, WMS had

approximately 50.2 million shares issued and outstanding, net of shares

held in the Company’s treasury.

Fiscal 2009 Fina

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