HUNTINGTON BEACH, Calif., March 2 /PRNewswire-FirstCall/ -- HAPS USA, Inc. (OTC:HAPS) (BULLETIN BOARD: HAPS) recently filed an 8-K/A with the SEC, detailing the Company's financial results for the quarter ended September 30, 2005. Compared to the quarter ended September 30, 2004 gross wagers increased by 6.7% to $48,633,987. Gaming revenues for the quarter increased by 18.4% to $5,905,034 for the quarter as compared to the quarter from the previous year. There was a 10.9% increase in the number of pachinko machines in operation with 4,298 machines in 13 locations. After allowances for non-cash depreciation and impairment losses the quarter ended September 30, 2005 showed a net income of $18,101 compared to a loss of $358,183 in the same quarter in the previous year. This improvement can be attributed to the increase of gaming revenue due to the opening of two new stores in 2005. Management will continue to pursue its successful implementation of the PGMI business model investing the bulk of its profits to secure market share. As a result of the recent merger taking PGMI public, the Company has strived to meet a demanding schedule for financial reporting. Pachinko gaming is by far the largest industry in the Japanese service sector with an estimated $277 billion in gross wagers. The Tokyo-based Yano Research Institute, Ltd. estimates that the pachinko industry employs an estimated 319,000 people in Japan compared to the 350,000 employed by the entire U.S. casino industry. The Leisure and Development Center of Japan stated that an estimated 40-50 million adults in Japan play Pachinko and approximately 26% of adults (approximately 25 million people) in Japan are regular customers. The Japanese Ministry of Economy reports that pachinko accounts for over one-third of all spending on entertainment in Japan. This huge component of the world economy has until recently been completely ignored by the U.S. investment markets. Shinichi Kanemoto, the president of PGMI and HAPS USA, Inc. said, "Pachinko gaming is an integral part of Japanese life. By providing a clean, attractive and exciting environment for our patrons we seek to expand our position as one of the premier operators. Becoming a publicly traded company in the United States gives us the opportunity to bring this pure gaming investment to stock market investors. The advent of computer monitoring and control has generated a shift toward consolidation. Our extensive use of information technology (IT) gives us a significant competitive advantage over the majority of pachinko operators. We will continue to add modern stores and cull out less profitable locations. We feel that this strategy will bring significant savings from economies of scale in management, marketing and operating costs." This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "estimate", "possible" and "seeking" and similar expressions identify forward-looking statements, which speak only as to the date the statement was made. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted, or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to the effect of government regulation, competition and other material risks. Investor Relations: Toll free: (888) 918-8847 e-mail: Web: http://www.pgmi-inc.com/ DATASOURCE: HAPS USA, Inc. CONTACT: Investor Relations, +1-888-918-8847, Web site: http://www.pgmi-inc.com/

Copyright