Text: Texture Face Materials

Load a Blender Game Engine Font sheet  (see 5a below)

UV/Image Editor >> Image >> Open

Blender Game Engine font sheets

Font sheets can be downloaded:

Text in Blender Game Engine uses Blender Font Sheets.  
To create your own Blender Font Sheet, you can use ftblender.
ftblender written by Frank van Beek. 
He released it under the GNU GENERAL PUBLIC LICENSE.

Map UV Texture to Font Sheet @

3D View Window
Plane selected.  Edit mode
All vertices selected

UV/Image Window
All vertices selected

Map UV Texture to Font Sheet 
@ only

Enable Tex button

Button Windows menu >> Editing (F9)
Texture Face tab
Tex button

Enable Text button

Button Windows menu >> Editing (F9)
Texture Face tab
Text button 

The Blender 3D and game engine tutorials were created as a series of step by step instructions and help you create computer games. Use the tutorials to make casual video games, First Person Shooter games, role playing games, racing simulation games and more. Use the tutorials as a self paced learning tool to model and program your own three-dimensional world and then play on your computer.