• New Mexico Lottery Profits Top $300 Million. Full Story
• ESI Integrity Enters into Agreement with INTRALOT to Supply Independent Verification System to the South African National Lottery. Full Story
• Scientific Games And Hasbro Extend Alliance To Bring More Than 20 Hasbro Properties To Global Lottery Industry.
  Full Story
• Lottery Celebrates 21st Anniversary With $10 Billion In Sales. Full Story
• Gaming Card Success For Norsk Tipping. Full Story
• Lottery First to Receive Verification of Quality Assurance Processes. Full Story
• SCEL Celebrates 5th Anniversary! Full Story
• Cyberview to Underscore Its Leadership in Server-Based, Downloadable Gaming Systems at ICE Show. Full Story
• Record Year for Sports Betting Board. Full Story
• SAZKA Announce Preliminary Earnings for 2006. Full Story

New Mexico Lottery Profits Top $300 Million

ALBUQUERQUE, New Mexico, USA (January 5, 2007) -- The New Mexico Lottery has surpassed the $300 million mark in money raised for public education in New Mexico.  The $300 million milestone was reached when a wire transfer of $3.2 million, representing Lottery profits for November 2006, was sent to State Treasurer James B. Lewis last Friday.  The money will be used to fund the popular Lottery Success Scholarship program.

 “Profits are 14% ahead of our fiscal year-to-date revenue projections,” announced Lottery CEO Tom Romero.  “That’s great news for the continued success of the Lottery Scholarship program.”

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Lottery ticket sales began in April 1996.  The $100 million milestone for Lottery profits was achieved four and a half years later, in November 2000.  In January 2004, the Lottery topped the $200 million mark.  This latest milestone was reached in less than three years.

 “Sales are strong this fiscal year, despite the absence of a record Powerball jackpot as we had last year,” said Romero.  “Scratcher sales are up nearly $2 million from last year at this time, indicating that our new strategies for Scratcher games are working.”

The $300 million includes $66.5 million that was previously transferred to the Public School Capital Outlay Fund.  Originally, Lottery proceeds were divided between the Lottery Tuition Fund and the Public School Capital Outlay Fund.  The lottery-funded distributions for capital outlay were made between 1996 and 2002, for school construction and repairs for grades K-12 at 61 school districts.  In 2001, the New Mexico Legislature voted to make the Lottery Tuition Fund the sole beneficiary of Lottery proceeds.

By state statute, at least 50 percent of every dollar in Lottery sales goes to fund prizes for Lottery players.  Lottery retailers also receive a 6 percent sales commission and 1 percent cashing commission.

All proceeds from the sale of all New Mexico Lottery games benefit the Lottery Success Scholarship program, which provides tuition assistance for New Mexico residents attending New Mexico public colleges and universities.  According to statistics provided by the Higher Education Department, more than 43,000 students have received in-state tuition from this merit-based scholarship program.

SOURCE: The New Mexico Lottery.
CONTACT: Lottery Communications Office

(505) 342-7616, (800) 642-6689, ext. 7616 or Email: media@nmlottery.com.

ESI Integrity Enters into Agreement with INTRALOT to Supply Independent Verification System to the South African National Lottery

VANCOUVER, British Columbia, Canada (January 9, 2007) -- ESI Entertainment Systems Inc. (TSX:ESY) today announced that its subsidiary, ESI Integrity Inc., has entered into an agreement with INTRALOT S.A., a leading global supplier of integrated gaming and transaction processing systems to game organizations worldwide, to supply its industry-leading Integrity Independent Verification System (IVS) for the South Africa National Lottery.

The Integrity license agreement plus related services are cumulatively valued at approximately US $600,000 over a contract term of seven years.  The South African agreement validates ESI Integrity’s continued strategic expansion into the regulated international gaming markets while also maintaining its strong presence in the US government lottery sector.

With 44 Integrity licenses deployed in North America, South America, Europe, Asia, and Africa, ESI systems monitor more than US $20 billion in annual wagering revenues for lottery and pari-mutuel organizations. The current operator for South Africa’s National Lottery has been utilizing the Integrity system since 2000 to monitor the Lottery’s games. The conversion to INTRALOT’s gaming system is scheduled for April 1st, 2007.

“We are very excited to be able to continue to provide our industry-leading IVS solution for South Africa’s National Lottery, “said Alan Ahac, President of ESI Integrity. “This agreement further endorses ESI Integrity as a global provider of real-time transactional monitoring and auditing solutions for regulated gaming operators.”

Constantinos Farris, General Technical Director of INTRALOT S.A. commented, “We are very pleased to cooperate once again with ESI. We believe that by providing the South African Lottery with ESI’s Integrity Verification System, we ensure the transactions with all the security and transparency needed.”

Under the terms of the agreement the ESI Integrity system will provide continuous transaction monitoring of the Lottery’s On-line, Instants, and Sports Betting games. Integrity will capture, process, and record all of the Lottery’s transactional activity offering independent and real-time visibility to data such as wagers, cancels, winner selection, and prize payouts.

About ESI Entertainment Systems Inc.

ESI Entertainment Systems Inc. is a public company traded on the Toronto Stock Exchange (TSX: ESY).  Its subsidiary companies are recognized as leading providers of secure and efficient payment processing, monitoring and entertainment services to the gaming industries.

About ESI Integrity Inc.

ESI Integrity Inc. is the leading supplier of independent software for Security and Risk Management in gaming. The ESI Integrity Continuous Monitoring System provides independent real-time monitoring of lottery and pari-mutuel gaming ­ auditing billions of dolllars of gaming world-wide every year. ESI Integrity is currently licensed at over 40 lotteries and pari-mutuel wagering sites, spanning North America, South America, Europe, Asia, and Africa.

About INTRALOT

INTRALOT, a public company listed on the Athens Stock Exchange, is a leading supplier of integrated gaming and transaction processing systems, innovative game content and value added services to state-licensed gaming organizations worldwide. Its broad portfolio of products & services, its know-how of Lottery, Betting & Video Lottery operations, its experience in sports games and its leading-edge technology give INTRALOT a competitive advantage, which contributes directly to customers’ efficiency, profitability and growth. INTRALOT’s footprint straddles five continents with 37 subsidiaries, 8 business offices, 3,600 people and revenues of €523 million for 2005 and €700 million for 2r 2006.

For further information:  Alan Ahac, President ESI Integrity Inc., Telephone +1 604 299-9530 ext 302.

Scientific Games And Hasbro Extend Alliance To Bring More Than 20 Hasbro Properties To Global Lottery Industry

NEW YORK and PAWTUCKET Rhode Island, USA (January 10, 2007) -- Scientific Games (NASDAQ: SGMS), and its licensing subsidiary MDI Entertainment, today announced that it has signed a multi-year licensing agreement with Hasbro, Inc (NYSE: HAS).  The global deal has the potential to bring 20 Hasbro brands to multiple lottery platforms such as instant and pull-tab tickets, on-line terminal generated games, mobile, internet and interactive television.  Financial terms were not disclosed. 

The agreement, an extension of an existing alliance, covers Hasbro brands for almost every government operated or authorized lottery in the world.  Some of the key properties on tap for lottery games include MONOPOLY, BATTLESHIP, CLUE, YAHTZEE, BOGGLE, SCRABBLE (U.S. and Canada only), and THE GAME OF LIFE. These brands are under an exclusive license for such lottery products from HPG, the licensing arm of Hasbro.

 “This is a landmark deal for Scientific Games and MDI,” said Steven M. Saferin, president of SG Properties and MDI. “We are gratified that Hasbro has selected us as its licensee to expand upon our existing successful relationship for scratch tickets in North America to nearly all lottery gaming platforms throughout the world.  This is a tremendous opportunity for us to continue to grow our licensing business and serve our lottery customers with some of the greatest game brands in the world." 

 “Our expanded relationship with Scientific Games and MDI gives us another opportunity to bring Hasbro’s incredible portfolio of games to the global market in ways that are relevant for today’s consumers,” said Jane Ritson-Parsons, president of HPG. “We’re confident that the collective expertise of Scientific Games and MDI means that lottery consumers around the world can expect to experience a wave of licensed lottery products that are fun and most of all, entertaining.”

 “We are delighted to extend our relationship with Scientific Games and MDI,” said Tom Klusaritz, HPG’s vice president of licensing for the Americas.  “They have executed a tremendous, innovative strategy introducing Hasbro properties into the booming lottery industry in a way that is engaging for consumers but maintains our brand integrity.”

 “We are excited to launch the lottery versions of some of the world’s most popular games,” said Lorne Weil, chairman and CEO of Scientific Games. “Entertainment is the key to successful lotteries and Hasbro game’s products are synonymous with fun. Lotteries have been looking for new gaming content on a variety of platforms and the Hasbro brands are an excellent solution. This is a very important strategic and business relationship for Scientific Games and we are very excited about the possibilities it brings our company and our lottery customers to grow their respective businesses."

About Scientific Games

Scientific Games Corporation is the leading integrated supplier of instant tickets, systems and services to lotteries, a leading supplier of fixed odds betting terminals and systems, interactive sports betting terminals and systems, and wagering systems and services to pari-mutuel operators. It is also a licensed pari-mutuel gaming operator in Connecticut, Maine and the Netherlands and is a leading supplier of prepaid phone cards to telephone companies. Scientific Games' customers are in the United States and more than 60 other countries. For more information about Scientific Games, please visit our web site at http://www.scientificgames.com.

About MDI Entertainment

MDI Entertainment, LLC, a wholly-owned subsidiary of Scientific Games, is the world leader in providing game and promotional entertainment for use by the worldwide lottery industry. Established in 1986, MDI began marketing licensed games to lotteries in 1996 and since then has built a licensed property portfolio of extraordinarily popular licensed, patented or otherwise copyrighted properties for which MDI holds exclusive lottery licensing rights, including some of the world’s best known and most loved symbols of entertainment and pop culture. For more information about MDI, please visit our web site at http://www.mdientertainment.com.

About Hasbro

Hasbro is a worldwide leader in children's and family leisure time entertainment products and services, including the design, manufacture and marketing of games and toys ranging from traditional to high-tech. Both internationally and in the United States, its PLAYSKOOL, TONKA, MILTON BRADLEY, PARKER BROTHERS, TIGER and WIZARDS OF THE COAST brands and products provide the highest quality and most recognizable play experiences in the world.

About HPG

HPG, the licensing arm of Hasbro, Inc. (NYSE: HAS), translates one of the industry’s richest portfolios of brands into a world of fun and excitement for children and adults globally.  Through a host of publishing, digital media, lifestyle and entertainment platforms, HPG is able to surround consumers of all ages worldwide with consumer products that expand Hasbro’s core brands, such as TRANSFORMERS, LITTLEST PET SHOP, MY LITTLE PONY, MONOPOLY, G.I. JOE, TONKA and PLAYSKOOL.

SOURCE: MDI Entertainment.
Company Contact: Investor Relations, Scientific Games Corporation, 212-754-2233.

Lottery Celebrates 21st Anniversary With $10 Billion In Sales

WEST VIRGINIA, USA (January 5, 2007) -- The West Virginia Lottery plans to celebrate its 21st anniversary on Jan. 9 with cumulative sales approaching $10 billion, according to Lottery Director John Musgrave.

Musgrave said the Lottery has generated $10 billion in sales and nearly $3.5 billion in profits since the first ticket was sold in 1986, “substantially more than the $8 million a year in profits that was predicted in 1985.”

“Approximately $794 million represents sales for the current fiscal year through December, with $368 million in profits transferred to the State,” Musgrave said. He announced at the close of the 2006 fiscal year on July 1 that sales had broken the $1.5 billion sales mark. The figures included a record $218 million from traditional games, $943 million from racetrack video lottery, and $361 million from Limited Video Lottery games.

“The $3.5 billion profit figure holds the key to the cornerstone of the Lottery’s endeavors; statewide programs benefiting education, senior citizens and tourism have reaped benefits that could only be imagined when the first ticket was sold 21 years ago. We look forward to celebrating our 22nd anniversary and the promising opportunities this year can bring,” Musgrave said.

SOURCE: West Virginia Lottery.

Gaming Card Success For Norsk Tipping

HAMAR, Norway (January 5, 2007) -- During the course of a single year almost 100 percent of Norsk Tipping’s customers have acquired the company's new gaming card with SmartCard technology.  This means that 1.8 million Norwegians have acquired the tool they need to access new services and games through several channels with the highest possible level of security. The new technology makes it possible for Norsk Tipping to not only explore the inherent commercial potential, but also to combat undesirable gaming habits.

The old magnetic strip identity card was in use from 1992 until the autumn of 2006.  The card was used for registering gaming, and provided the customer with the security that all premiums were sent to the actual winner.  Norwegians have long traditions in preferring registered gaming, and more than 90 percent of all gaming with Norsk Tipping has traditionally been registered, and still is.

The old system was in need of modernisation, and by taking SmartCard technology -which was originally developed for gaming via the Internet – into use we have opened the way to new possibilities for our customers, the company and our agents.

Correct information

In order to get the new card, the customer must identify himself to the agent with a valid ID, a national identity number and must also provide a bank account number.  The customer's correct address is then retrieved and confirmed online from the Norwegian Register of Persons. Norsk Tipping can thus be sure that all the information is correct, and that the person holding the card is in fact the person he or she claims to be.

Secure ID

Once the card has been issued the customer can use it to identify him/herself, register gaming activities and retrieve winnings/prizes from Norsk Tipping, whether one wishes to play via an agent or through electronic channels such as the Internet or mobile telephone.  This provides all Norsk Tipping’s 1.8 million register customers with the opportunity to play through electronic channels.  The system also allows the customer to archive permanent coupons, lines and lucky numbers and also use other services in the future that will be specially adapted to the individual player.  The most important feature of the new card is however the qualified electronic ID that is approved for use in electronic channels.  This means that the ID in the card can be used with other service providers than Norsk Tipping, for example public services available via the Internet.

Quicker, faster, cheaper

Simultaneously with the introduction of the new card, Norsk Tipping implemented a total reorganisation of the system for paying out prizes.

When the customer registers and pays for the new card, a gaming account is opened in the customer's name.  When the customer then plays one of Norsk Tipping’s games, any winnings or prizes up to NOK 10 000 are transferred to the customer's gaming account.  The amount registered on the gaming account is available either through the agent, via the Internet or mobile telephone, and the customer can retrieve the amount by using the card and PIN code.

The customer can choose to have the amount transferred to his bank account, paid out in cash, used to pay for the games, all remain in the gaming account.  The customer may also deposit money into the gaming account and use these funds to pay for new games using the channel of his/her choice.

Under the previous arrangement winning/prizes were either paid directly to the customer's bank account, through a payment giro, or, for prizes/winnings under NOK 1000 in cash directly from the agent.  Transfers to bank accounts and via payment giros cost Norsk Tipping and our customers many millions of kroner annually.  The new system saves the company a great deal of money, while at the same time no fees are charged to our customers.

Customer information

The new registration system provides Norsk Tipping with new and valuable knowledge about our customers, and their gaming habits and purchasing patterns.  This affords the company the possibility of communicating directly with the customer on the basis of their preferences and to offer information specially adapted based on knowledge of the customer's purchasing patterns.  This also applies to product development and any limitations.

Correct and good customer knowledge also provides us with the possibility of introducing measures to combat undesirable gaming habits, for example imposing personal limits for gaming.

30,000 weekly

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The card has been sold via our agents, and customers have been offered a new card as and when their old cards expired.  The old cards were valid for one year, while the new cards are valid for three years.  It has in other words taken one year to exchange all the old cards, and in the region of 30 000 new cards a week were issued throughout the year.

Norsk Tipping was anxious to see how customers would receive the new system for registered gaming and prize payment, but the transition has exceeded all our expectations.

The changeover was completed in October 2006, which means that 2007 will be the first year in which all customers use the new card.

The owner of the ID and prize payment system, Buypass, is a subsidiary of Norsk Tipping and Posten Norge.

SOURCE: Norsk Tipping AS.
CONTACT: Roar Jødahl, Press Spokesman.

Lottery First to Receive Verification of Quality Assurance Processes

LOUISIANA, USA (January 4, 2007) -- The Louisiana Lottery Corporation is the first lottery in the country to receive industry verification of its quality assurance processes.

In April 2004, the North American Association of State & Provincial Lotteries (NASPL) issued a set of best practices, Quality Assurance of Product Development in the Lottery Industry, and outlined a rigorous verification process in January 2005. The Louisiana Lottery achieved verification in the two areas of Quality Assurance Best Practices applicable to lotteries in November 2006.

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"This is a tremendous accomplishment for the Lottery," said President Rose Hudson. "It speaks volumes to the competencies and high standards held by the Lottery's managers and staff -- I'm exceptionally proud of their hard work and dedication to excellence."

NASPL's best practices provide a documented set of quality assurance processes and procedures that allow lotteries and vendors to follow an approved and repeatable method when defining, developing, and accepting software products for installation at the lottery. Together they provide a set of processes and procedures that address the quality assurance requirements throughout the hardware and/or software production cycle from requirements specification through design, implementation and testing, to acceptance and deployment.

The purpose of implementing the best practice is to increase the integrity of the lottery business by producing higher-quality systems that would result in reduced risk, better performance, reduced costs and increased public confidence and player satisfaction.

The Louisiana Lottery's verification involved several telephone assessment meetings and an on-site assessment conducted independently by The Open Group, a world leader in the implementation of certification programs, under NASPL's authority. More information about NASPL standards and best practices can be found on the organization's Web site, www.naspl.org.

SOURCE: Louisiana Lottery.

SCEL Celebrates 5th Anniversary!

COLUMBIA, South Carolina, USA (January 8, 2007) -- Five years ago the South Carolina Education Lottery (SCEL) made state history by selling its first ticket.  SCEL began with four instant tickets, and today has 38 different instant tickets and four number games:  Pick 3, Pick 4, Palmetto Cash 5, and Powerball®.  Through December 30, 2006, SCEL has sold approximately $2.8 billion in instant tickets alone and grossed almost $4.6 billion in total sales.

Tonight, more history will be made when winning numbers for the state$B!G(Bs first raffle are announced.  The Carolina Millionaire Raffle announcement will be broadcast on FOX stations during half-time of tonight$B!G(Bs national championship college football game.  Raffle players will win $5.5 million; of that, four lucky individuals will each win a $1 million prize.  Carolina Millionaire Raffle numbers will also be posted on the Lottery$B!G(Bs website following the reveal. 

Of the funds earned by the Lottery, approximately 29% has been transferred to the Education Lottery Account to be appropriated by the General Assembly to support education.

More than $1.46 billion has been appropriated since startup through June 2007!

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• Higher Education Programs and Scholarships have received more than $1 billion:
• The Endowed Chairs Program at the state’s three research universities has received $150 million; and
• Approximately 500,000 scholarships have been funded through $757 million in appropriations.

K-12 programs received more than $400 million:

• Including $212 million appropriated to K-5 programs;
•  $6 million to grades 6-8 programs; and
• $61 million for new school buses.

 More than $37 million has been appropriated to Community Education Programs:

• The Educational Television Network received almost $20 million to upgrade to digital technology; and
• County libraries received $13.7 million.

SCEL’s impact on this state is also significant.

• More than $29 million has been collected in state income tax withheld from players on lottery winnings.
• More than $432 thousand has been collected from players in the State’s debt set-off program; most of which is back child support.
• More than $18.3 million was earned in interest by the State Treasurer from net lottery transfers through November 2006.
• Retailers have received more than $323 million in taxable commissions through December 2006.

Here are a few more highlights from this past year:

• The Lottery launched its first promotional game show – Carolina Power Deal.  This exciting two-minute promotional game show is televised statewide.  Contestants can win up to $20,000.
• The Lottery held its biggest summer promotion, which concluded at the state fair.  Wendell Hughes, of Fort Mill, took home the grand prize of $1 million and a Ford Mustang® Convertible.  Three other contestants walked away with a Mustang® as well.

 So, what’s next? The South Carolina Education Lottery has many exciting new games and promotions planned for 2007.

• Last week, the Lottery launched its American Idol™ instant ticket, which offers a second-chance drawing to win tickets to the season finale in Los Angeles.
• Due to last year’s successful Sweethearts and Magnolias promotion, this year we are teaming up with the Sports Network and three SC Bed and Breakfast Inns to offer our players romantic stays across South Carolina.
• Palmetto Cash 5 will be going to drawings on 5 nights a week.  We are excited to launch the expansion of this game.  It will be highlighted with a great promotional partnership with AAA Vacations of South Carolina.

SOURCE: South Carolina Education Lottery.
CONTACT: Tara Robertson, SCEL PR Manager, Direct: 803-737-2399, Fax:  803-737-2687.

Cyberview to Underscore Its Leadership in Server-Based, Downloadable Gaming Systems at ICE Show

-- Largest Range Ever Of Products Is Themed “We Have What Everybody Else Is Talking About”

-- To Present Ground-Breaking Conversion Kits for Legacy Machines Allowing Low Cost Upgrade To Downloadable System

-- Also To Be Featured New Award-Winning Advancement – Remote Diagnostics Application – and Next-Generation FOBTs and IVTs

LONDON & LAS VEGAS (January 8, 2007) -- Cyberview Technology, a leading provider of secure server-based downloadable systems to the gaming industry, will underscore the theme, “We Have What Everybody Else Is Talking About,” at the upcoming International Casino Exhibition – ICE 2007, 23-25 January 2007, to be held in London. During this international forum for the gaming industry, the company will expand upon its pioneering development of server-based gaming by demonstrating a range of innovative capabilities and products representing new frontiers of how to more fully utilize the technology.

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As a key development in server-based gaming, the company will present its ability to convert legacy gaming machines into a “downloadable” system, simply by using an upgrade kit, enabling significant benefits. Designed to add new value to existing machines, this “Refresh Technology” enables a wide array of the key functions of a Cyberview server-based, downloadable gaming system at a low cost.

Among other new ground-breaking products at the stand will be the company’s next generation Fixed Odds Betting Terminal (FOBT) and IVT. An ergonomic, high tech player interface with dual-screen display, the new “LARA” FOBTs have already been ordered by Ladbrokes, the UK’s largest bookmaker, with 7,000 to be installed by April 2007. For the video lottery market, the company will be demonstrating its Secure Interactive Video Lottery Terminal (SIVT). The SIVT is the first truly robust and secure gaming system for street operations where the RNG is inside the terminal, enabling operation in environments such as developing countries where telecommunication may be an issue, and also enhancing the security of the system in road operations.

Also to be showcased will be the company’s Remote Diagnostic Application (RDA) which allows operators to solve gaming machine problems centrally throughout their estate without leaving their desks. AT ICE 2007, the RDA will be presented an award by the industry’s annual Gaming & Technology Awards program, marking the third year in a row that the company has received industry acknowledgment for excellence in innovation and practical application. Previous awards were for the company’s “Game Activation Scheduler” in 2006 and for its complete server-based, downloadable gaming system in 2005. Additional unique server-based applications will include the Cyberview Dynamic Game Library (DGL) and the Game Development Tool Kit (GDK). Rounding out the company’s largest range ever of new introductions will be its new Virtual Racing system.

About CYBERVIEW TECHNOLOGY

With more than ten years experience in server-based distributed gaming, Cyberview Technology develops, produces and implements innovative, integrated solutions for the gaming, betting and leisure industries. Currently, the company provides its server-based, downloadable system and player interfaces as Fixed Odds Betting Terminals (FOBTs) to betting shops and race and sports books; Interactive Video Lottery Terminals (IVTs) to lotteries; and slot machines to the casino industry. Recipient of numerous industry awards, it was the first company in the world with U.S. casino approval for its server-based downloadable system. The U.S. company is traded on the London Stock Exchange (CYBS.L). For further information, visit www.cybview.com.

CONTACTS: Cyberview Technology, London, Sylvie Linard, COO, +44 20 7761 3000

Or Hogarth Partnership, London, Fiona Noblet, +44 20 7357 9477.

Record Year for Sports Betting Board

339 Million Dollars Revenue and 153 Million Dollars Profit

PETACH-TIKVA, Israel (January 2007) -- Revenues for The Israel Sports Betting Board for 2006 reached a record high of NIS 1.439 billion (339 million dollars), an increase of 34 per cent compared to the previous year.

During the past three years The ISBB has doubled it revenues and has recorded a constant growth in revenue over the past 12 consecutive quarters.

Revenues for 2003 were NIS 684 million (160 million dollars). In 2004 revenues grew to NIS 895 (210 million dollars), and in 2005 the ISBB crossed the Billion Shekel barrier.

In the past year approximately 55 per cent of revenues (NIS 788 million / 185 million dollars) was returned to the public as prizes, while the ISBB’s profit stood at 45 per cent (NIS 652 million / 153 million dollars). “The excellent business results will allow us to grant NIS 500 million (118 million dollars) to the Israel sports activities. These funds were allocated to some 3,000 sports organizations throughout Israel and are also earmarked to advance infrastructure projects and to support Olympic Sports”, said Shaul Schneider, the ISBB Director General and CEO.

The facts behind the numbers

• “Winner”, brand for Odds, the ISBB’s leading product, accounted for 77 per cent of revenues (NIS 1,112 million / 262 million dollars). The product’s annual growth rate was 40% compared to the previous year. “Toto” accounted for NIS 327 million (77 million dollars - 23 per cent of revenues).
• The Mondial, last year’s top event accounted for revenue of NIS 209 million (49 million dollars).
• Record revenue for a single day during the Mondial was NIS 12 Million (2.8 million dollars).
• Record monthly sales was hit in December (highest ever prize in the Toto game) at NIS 192 million (45 million dollars).
• Record weekly sales (Winner and Toto together) reached NIS 60 million (14 million dollars).
• What did the Winner participants prefer? First place was the Mondial, and after that the Champion’s league, the Spanish league, then the Italian and English leagues. The Israeli league contributes approximately 20% of ISBB revenues.
• Approximately 50 million Winner and Toto forms were sent.

Winner is one of the leading trademarks in Israel, and is the number one product in the Israeli gaming market.

The end of 2006 brought another first by the Toto, a record prize of NIS 55 million (13 million dollars), the highest prize ever in Israel. The prize accumulated over a two month period yielding revenues of NIS 100 million (24 million dollars). The last week some 1.5 million forms were sent by 1 million participants, encompassing almost every household in Israel.

Marketing and Advertising – A new approach

The ISBB’s advertising budget for 2006 was approximately NIS 50 million (12 million

dollars). The budget doubled over the past two years in an effort to conform to the

developing betting market, and to match the major increase in activity at the ISBB.

• The number of outlets increased by 40% over the past three years and now numbers approximately 1,500. (100 were added in 2006).
• The ISBB Internet site generated about NIS 82 million (19 million dollars) revenue in 2006. The number of active participants numbers around 50 thousand.
• The Internet advertising budget increased over the past year and stands at about NIS 3 million (700 thousand dollars).

Endorsements and Programs

ISBB decision to endorse the Top league in football (Toto League) and in basketball (Winner League) was an important marketing decision strengthening the ISBB trademarks.

To reach new markets and create excitement, the ISBB invested in numerous marketing

strategies in the various medias.

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• The “Winner’s corner” on popular radio programs and on local language Arab stations.
• Winner and Toto programs were advertised in the printed media.
• Trademark advertising on popular internet sites.
• Exposure in a popular Israeli soap opera (The Champion), based on a local football team. The soap has currently entered its second season.
• Full cooperation with the Israeli Sports 5 channel.

Innovations and Changes

• The ISBB inaugurated a Single and two Double games which increased revenues by 10%. This option was first offered during the Mondial and has since become part of the weekly form.

Goals for 2007

Over the past three years the ISBB has undergone a revolution and sees itself as a

business oriented operation.

“The ISBB has the potential to exceed the NIS 1.5 billion (353 million dollar) mark in annual revenue, even in a year without a major sporting event. There are untapped sources of sports fans outside our betting circles. We hope to open additional opportunities by combining betting on horse racing with the advanced platforms for betting via the cellular phone system and through interactive television. The technical capabilities are there and are waiting for ministerial approval” emphasizes Gideon Brickman, Chairman of ISBB.

SOURCE: Israel Sports Betting Board media release Via European State Lottery and Toto Association (EL).

SAZKA Announce Preliminary Earnings for 2006

PRAGUE, Czech Republic (January 9, 2007) -- In 2006, joint-stock company SAZKA saw its net profit as well as revenues from betting and lottery activities rise, as results from a preliminary professional forecast of earnings prior to closing accounting activities and an audited financial statement.

The estimated earnings after tax exceeded CZK 1.7 billion in 2006, up by more than 9% year on year. The figure has not yet been adjusted for the re-pricing of a new bond issue and hedging derivatives. Revenues from company’s main business, i.e. betting and lottery activities, were approximately CZK 7.9 billion in 2006, and also rose by approximately 9% year on year.

SAZKA, a. s., extended its portfolio of products and services last year, adding the optional Royal Game (“Královská hra”), available for players of the number lottery Lucky 10 (“Šťastných 10”), and a few new games under the StarPort gaming system to its lottery portfolio, while its non-lottery activities were extended with a sales module and the option of payments by paying-in slips, invoice and insurance premium payments. In early 2006, SAZKA, a. s., carried out a successful conversion of its central on-line system into the more modern Enterprise Series system and currently continues to replace all terminals with more efficient Altura units.

In July 2006, the company restructured bonds issued in 2004 at the Luxembourg Stock Exchange in relation to financing the construction of the multi-purpose SAZKA ARENA. SAZKA, a. s., will make the first repayment of the new issue, in accordance with the schedule of payments, in the first half of January 2007.

 “The financial earnings forecast for last year bears out the long-term growth tendency in company’s financial performance and the assumptions we presented to investors as part of a bond issue,” said Chairman of the Board of Directors and General Manager of SAZKA, a. s., JUDr. Aleš Hušák. “Net profit, for instance, has increased by approximately CZK 0.5 billion since 2002, i.e. for the last five years, despite the fact that the government did not allow us to apply VAT abatement in 2005 and 2006. Otherwise the company’s net profit would have been nearly CZK 2 billion as early as last year.”

Shareholders of SAZKA, a. s., which is the largest lottery operator and the largest nongovernmental provider of funds to good causes in the Czech Republic, are public associations active in sports and physical education. SAZKA, a. s., which started activities in 1956, is a member of the two most prominent lottery organisations, European Lotteries and World Lottery Association. and World Lottery Association.

SOURCE: SAZKA, a. s.
CONTACT:  PhDr. Zdeněk Zikmund, SAZKA, a.s. Press Spokesperson, Tel.: 266 12 92 22, Fax: 266 12 26 67, E-mail: zikmund@sazka.cz