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[POWERHOUSE LOGO]


                 ANCHOR GAMING AND POWERHOUSE TECHNOLOGIES, INC.
                      ANNOUNCE DEFINITIVE MERGER AGREEMENT

          ANCHOR GAMING PLANS TO CHANGE ITS NAME TO ANCHOR TECHNOLOGIES


FOR IMMEDIATE RELEASE:     WEDNESDAY, MARCH 10, 1999

[LAS VEGAS, NV and ATLANTA, GA] - Anchor Gaming ("Anchor") (Nasdaq: SLOT) and
Powerhouse Technologies, Inc. ("Powerhouse") (Nasdaq: PWRH) announced today the
signing of a definitive merger agreement. Anchor will acquire Powerhouse for
$19.50 per share, which represents a 32% premium over yesterday's closing stock
price, in an all cash merger. The merger creates a diversified international
gaming entity with combined revenues of approximately $450 million. The
transaction values Powerhouse at approximately $280 million, consisting of
approximately $220 million of equity value and approximately $60 million of net
debt estimated at closing. The transaction will be accounted for using the
purchase method of accounting and is expected to be neutral to slightly
accretive to Anchor within the first full year after closing.

         Anchor's Chairman Stan Fulton stated, "This transaction represents an
outstanding opportunity for Anchor to maximize long-term shareholder value by
strategically transforming our company. With our strong balance sheet, we will
be able to provide the capital necessary to fund the many growth opportunities
inherent in Powerhouse's business segments." President and Chief Executive
Officer Michael Rumbolz added, "The acquisition of Powerhouse provides Anchor
with management depth and increased technological and manufacturing
capabilities. The integration of these capabilities will enhance Anchor's
technological leadership and growth opportunities in our proprietary games
division." The merger expands Anchor's domestic route and casino presence
through the addition of Powerhouse's Montana route operation and the Sunland
Park Racetrack and Casino in New Mexico and also provides an entree for Anchor
into the on-line lottery device and systems business.

         "Powerhouse's strong recurring revenue base will enhance the stability
of Anchor's earnings," Rumbolz added. "We feel there is significant growth
opportunity in the on-line lottery business. Powerhouse currently has seven
state lottery contracts representing 18% of the domestic on-line lottery market.
There are more than ten other potential contracts subject to competitive
procurements over the next two years and we expect to maintain or improve our
market share. We are also pleased with the initial 



                                      
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results of the casino at the Sunland Park Racetrack and look forward to applying
our extensive expertise in operating slot machines to the facility."

         Richard Haddrill, Powerhouse's President and Chief Executive Officer
stated, "This transaction represents an excellent two and one-half year return
to our shareholders. Furthermore, it provides our employees with significant
opportunities going forward and ensures uninterrupted customer service. The
combined company will have both the size and expertise to more effectively
compete in today's consolidating gaming market."

         In conjunction with the acquisition, Anchor announced it intends to
seek shareholder approval to change its name from Anchor Gaming to Anchor
Technologies. Anchor will also add two additional members to its Board of
Directors: Richard Burt, current Powerhouse Chairman and former U.S. Ambassador
to the Federal Republic of Germany, and Richard Haddrill.

         The transaction is subject to approval by the shareholders of
Powerhouse and the expiration of applicable waiting periods under the Hart-Scott
Rodino Antitrust Improvement Act. The transaction, which will also require
approval of various gaming authorities, is expected to close in the second half
of calendar 1999. Merrill Lynch & Company acted as exclusive financial advisor
to Anchor and rendered a fairness opinion to Anchor's Board of Directors. Lehman
Brothers acted as exclusive financial advisor to Powerhouse and rendered a
fairness opinion to Powerhouse's Board of Directors. The acquisition will be
funded by a combination of cash on hand and a $300 million senior credit
facility provided by a bank syndication group led by Bank of America.

         This press release contains certain forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934, as amended,
and other applicable securities laws. All statements other than statements of
historical fact are "forward-looking statements" for purposes of these
provisions, including any projections of earnings, revenues or other financial
items; any statements of the plans, strategies, and objectives of management for
future operation; any statements concerning proposed new products, services, or
developments; any statements regarding future economic conditions or
performance; statements of belief; and any statement of assumptions underlying
any of the foregoing. Such forward-looking statements are subject to inherent
risks and uncertainties, and actual results could differ materially from those
anticipated by the forward-looking statements. Although the company believes
that the expectations reflected in any of its forward-looking statements will
prove to be correct, actual results could differ materially from those projected
or assumed in the Company's forward-looking 



                                      
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statements. These risks and uncertainties include, but are not limited to: risks
of proprietary games such as pressure from competitors, changes in economic
conditions, obsolescence, declining popularity of existing games, failure of new
game ideas or concepts to become popular, duplication by third parties and
changes in interest rates as they relate to the wide area progressive machine
operations within the Company's joint venture with IGT; competition in Black
Hawk, Colorado; dependence on suppliers; changes in gaming regulations and
taxes; dependence upon key personnel; and other factors described from time to
time in the Company's reports filed with the Securities and Exchange Commission,
including the company's form 10-K for the year ended June 30, 1998 and its forms
10-Q for the first two quarters of fiscal 1999. In addition, there are inherent
risks in consummating the transaction described above and executing the strategy
it entails. These risks include the difficulty of integrating two business
organizations, the difficulty of achieving potential operational and business
synergies, the necessity of obtaining regulatory approvals, and the risk
associated with the debt financing of the transaction and future debt service
requirements. Additional risks that should be considered for the combined
entities are described in the reports of Powerhouse Technologies, Inc. filed
with the Securities and Exchange Commission.

         Anchor Gaming is a diversified gaming company that capitalizes on its
experience as an operator and developer of gaming machines and casinos by
developing gaming oriented businesses. Anchor Gaming currently develops and
distributes unique proprietary games, operates two casinos in Colorado, and
operates one of the largest gaming machine routes in Nevada.

         Powerhouse Technologies, Inc., through its operating units - VLC, AWI
and United Tote - is one of the leading suppliers of system software, equipment,
and related services for on-line lotteries, video lotteries and pari-mutuel
systems throughout the world, and a manufacturer and distributor of gaming
devices for casinos. Presently, the Company's equipment and systems are in
operation in the United States, Canada, Australia, Europe, South America and the
Caribbean. Powerhouse also owns and operates Sunland Racetrack and Casino in New
Mexico.

For information contact :

<TABLE>
<S>                                                  <C>
ANCHOR GAMING                                        POWERHOUSE TECHNOLOGIES, INC.
Michael D. Rumbolz, CEO and President, or            Susan J. Carstensen, CFO
Geoffrey A. Sage, CFO                                (406) 585-6746, or
(702) 896-7568                                       Wayne Brown of Carl Thompson Associates
                                                     (800) 959-9677
</TABLE>


