The loan, made personally by Lyle Berman, James Crawford, Lee Lomax and Lou White, is extended to the company on favourable terms with no dilutive warrants and carries no prepayment penalties or performance covenants. The company agreed to secure the loan using PokerTek's fleet of PokerPro tables in the field as collateral.

 "Quite simply, we believe in the future of the Company," said Lyle Berman, Chairman of the Board of PokerTek. "This loan allows our team to continue executing their plan that, thus far, has delivered revenue growth while efficiently managing costs."

 "We are grateful to the founders who, by putting up their own capital, have demonstrated confidence in management and PokerTek," said Chris Halligan, PokerTek's CEO. "We had been exploring options over the last few weeks and had several offers from outside firms to fund the company. We believe that funding PokerTek from ‘within the family' and at such favourable terms was clearly in the Company's best interest."

l PokerTek Inc has expanded the distribution agreement for its Heads-Up Challenge product with Cosmic Video Amusements, which now includes coverage for all of Europe. Previously, Cosmic Video had partnered with PokerTek solely for distribution in the England and Southern Ireland markets.

 "Our industry has needed a game like Heads-Up Challenge for some time now," said Terry Farr, CEO of Cosmic Video. "It's an entertaining game on an innovative platform that brings in a broad audience of players. We're pleased to cover Europe for PokerTek ,and believe there is great potential for growth in this market. Heads-Up Challenge is a jolt of energy to our industry," he added.

Heads-Up Challenge is a heads-up poker table targeted for bars and entertainment venues where adults compete in Texas Hold 'em poker tournaments for amusement only.

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