HUNTINGTON BEACH, Calif., March 8 /PRNewswire-FirstCall/ -- HAPS USA, Inc. -- (OTC:HAPS) (BULLETIN BOARD: HAPS) announces the filing of its 10-QSB with the SEC for the quarter ended December 31, 2005. Gross patron wagers for the three months ended December 31, 2005 increased by $2,220,422 to $45,217,511 an increase of 5.2% when compared to the same quarter of the previous year. Gaming revenues for the quarter increased by $473,316 to $4,896,622 and increase of 10.7% when compared to the same quarter of the previous year. The Company experienced a one time, 2%, non-cash expense associated with its reverse merger. For tax purposes, the Company booked other non-cash expenses, such as depreciation and the early retirement and write off of pachinko machines. This reduced the reported net income to a posted loss of $2,711,830 for the quarter. Actual cash on hand increased by 5.1% to $8,364,197 during the quarter. During the course of the year the Company increased the number of Pachinko machines in operation by 10.9% to 4,298 machines in its 13 locations. Total shareholder equity at the end of the quarter was $7,325,066. Shinichi Kanemoto, the president of PGMI and HAPS USA, Inc. said, "PGMI currently owns and operates 13 locations. Our business model calls for the opening of a number of new stores during the next 24 months. We will constantly evaluate and upgrade the quality of our locations by replacing stores that fall short of our standards. This pruning will result in increased capital efficiency and further strengthen the perception of our stores as a desirable entertainment destination. This model is the cornerstone of our plan to leverage our expertise and capitalize on new development opportunities for the expansion of our operations in Japan. We look forward to the continued growth of PGMI as a major provider of gaming entertainment." 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, , for HAPS USA, Inc. Web site: http://www.pgmi-inc.com/

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