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Vol. 34 No. 13 -- Monday April 3, 2006
MDI Entertainment Inc.
Oberthur Gaming Technologies
KEBA AG

  • Education Lottery Message Drumming Up Support. Full Story
  • INTRALOT S.A. Announces Its Financial Results for the 12-Months Ended December 31st, 2005. Full Story
  • Scientific Games and Major League Baseball Properties Agree on 5-Year Lottery Licensing Rights Package. Full Story
  • New President of Multi State Lottery Association Board Named. Full Story
  • Internet Gaming Increases Its Popularity. Full Story
  • INTRALOT Sponsors Two Major Cultural Events. Full Story
  • Made in Kansas Lottery Promotion Delivers Second Chevrolet Malibu. Full Story
  • La Française des Jeux Joker+, One More Chance to be Lucky!. Full Story
  • Norsk Tipping CSR Report Verified by DNV. Full Story
  • 2005 Charitable Bingo Gross Receipts Top $633.6 Million. Full Story

Schafer Systems Inc.
QLot Consulting
Wincor Nixdorf
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Education Lottery Message Drumming Up Support

RALEIGH, North Carolina, USA (March 24, 2006) --  Several North Carolinians will be marching into living rooms all across the state in a television commercial advertising the launch of the North Carolina Education Lottery (NCEL).

Members of Carolina Crown, a performance band, and some cheerleaders are featured in the commercial set to hit the airwaves next week.

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The advertising agency came up with the creative of the school marching band, which we thought was appropriate since 100% of the net proceeds from the lottery will benefit education,” said Tom Shaheen, executive director. “The commercials are designed to be fun, but also make clear who the winner is and that’s the young people in North Carolina’s schools.

Carolina Crown is a non-profit organization with 89 active members, some of which are North Carolina residents. About 30 of the band members participated in the filming of the commercial as did several cheerleaders from North Carolina.

I’m really excited about being part of the process. I’ve seen how other states have improved their education system through the lottery; it can benefit our state immensely,” said Andrei Robinson, former North Carolina A&T cheerleader.

I think (the lottery) is for a really good cause. People have a good reason to buy a lottery ticket, knowing they’re supporting education,” added Michael Larkin, University of North Carolina at Greensboro sophomore.

The NCEL will transfer 100% of the net proceeds from ticket sales to the state lottery fund for education. The proceeds will be used to fund pre-kindergarten programs for at-risk four year olds, class size reduction, school construction, and provide college scholarships to need-based individuals.

The television commercial, produced at the direction of Wray Ward Laseter, will start running March 27 along with several radio spots. They will be seen and heard all across the state to remind people that the Education Lottery will launch March 30.

For additional information about the N.C. Education Lottery, visit its website at

www.lottery.nc.gov, or call 919/715-6886 (71-LOTTO).

SOURCE: North Carolina Education Lottery (NCEL).


INTRALOT S.A. Announces Its Financial Results for the 12-Months Ended December 31st, 2005

ATHENS, Greece (March 23, 2006) -- INTRALOT SA, the leading international gaming company, today announces its financial results for the twelve-month period ending December 31st, 2005, prepared in accordance with IFRS.

Consolidated Financial Statements For The 12 Months
Ended December 31st, 2005
(in € million) 2005 2004 % Change
Revenues (Turnover) 523.0 314.2 66,4%
Gross Profit 226.2 139.1 62,6%
Gross Margin (%) 43.3% 44.3% -1.0pps
EBITDA 160.0 105.1 52,2%
EBITDA Margin (%) 30.6% 33.5% -2.9pps
EBT 150.5 99.2 51,7%
EBT Margin (%) 28.8% 31.6% -2.8pps
EAT (after minorities) 69.9 54.4 28.6%
EAT Margin (%) 13.4% 17.3% -3.9pps

Consolidated Revenues for the period reached €523m, posting a 66.4% increase compared to 2004. Revenues from INTRALOT’s International Subsidiaries amounted to €356.4m, a 71.0% contribution to FY05 consolidated turnover, compared to €170.0m (or 52.1%) in FY04.

EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) increased by 52.2% to €160.0m, compared to the same period last year.

Earnings Before Taxes (EBT) recorded an increase of 51.7% y-o-y by reaching €150.5m compared to €99.2m in 2004.

Finally, Earnings After Taxes and after minorities (EAT-am) increased by 28.6% y-o-y to €69.9m from €54.4m in 2004.

The cash balance reached €157.3m in 2005, while total bank debt was €54.0m (€20.7m short-term and €33.4m long-term), shaping the net cash position at €103,3m.

Commenting on 12-month 2005 results Intralot’s CEO, Constantinos Antonopoulos, noted:

Fiscal year 2005 was very successful for our Company as we continued to provide strong results and significant value to our shareholders. This is also evident through our proposed dividend for 2005 of €0.55 per share, increased by 15% compared to 2004. Moreover, in 2005 and at the beginning of 2006 the Company undertook total debt of €83.0m, taking serious steps towards the improvement of its capital structure, much awaited by investors, enhancing returns to shareholders.

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 In 2005, the company continued its global expansion through organic growth of exisiting contracts, new contracts, the acquisition of a betting company in Poland and the increase of the stake in our Turkish subsidiary. Moreover, in 2005 INTRALOT was marked as a five-continent company due to its new ventures in Africa and Oceania. Concerning domestic operations, ‘Stihima’ sales, after the measures taken for the improvement of the game, demonstrated a strong recovery, posting 30% increase y-o-y in the fourth quarter of 2005.

  Looking forward, 2006 and 2007 will be challenging years since important tenders for Lottery Privatization Projects and other major contracts will be carried out. Moreover, the World Cup in Germany is a major international sports event that will attract soccer fans’ attention, which will have a strong impact on INTRALOT’s operations in 13 countries. Finally, the development of our new family of entertainment solutions, GameWareX is expected to enhance our games portfolio.

The INTRALOT Group will continue to pursue business opportunities around the Globe and deliver value to both its customers and shareholders. The strategic development of the business, our extended products & services portfolio and our financial performance provide a strong foundation for the years to come.

New developments/contracts

  • In Turkey, INTRALOT increased its stake by 20% in its Turkish Sports Betting subsidiary INTELTEK, bringing its total stake in the company to 45%. INTELTEK has the exclusive contract to manage sports Betting in the country for eight (8) years on behalf of Sportoto, the Turkish Organization for sports betting. In 2005, which is actually the first year of full operation of Betting in Turkey, the game's turnover exceeded $900 million. The expansion of the sales network, the increasing publicity of games through the media, and players' continuously increasing interest in the game are expected to enhance the penetration of Betting in the country the next years.
  • Loteria Moldovei, INTRALOT’s subsidiary in Moldova, awarded a new contract with MOLDCELL, mobile operator in Moldova and TURKCELL’s affiliated company with which INTRALOT since 2003 has established a collaboration regarding its activities in Turkey. The project in Moldova initially entails the operation of LOTTO game through SMS and soon it will be broaden to other gaming applications.

About INTRALOT (www.intralot.com)

INTRALOT, a public company listed on the ASE, is a leading supplier of integrated gaming and transaction processing systems, innovative game content and value added services to state-licensed gaming organizations worldwide. It’s 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. With 33 subsidiaries, 8 business offices and more than 2,700 people in 33 countries and revenues of €523 million for 2005, INTRALOT’s footprint straddles five continents.

For more information please
CONTACT: Mr. Elias Athanasiou, Investor Relations, Phone: +30-210-6156000, Fax: +30-210-6106800, email: athanasiou@intralot.com.


Scientific Games and Major League Baseball Properties Agree on 5-Year Lottery Licensing Rights Package
Lotteries Can Now Offer Games Featuring Major League Baseball Club logos

NEW YORK, USA (March 28, 2006) -- Scientific Games Corps.’ (NASDAQ: SGMS) wholly-owned subsidiary, MDI Entertainment, has reached a licensing agreement with Major League Baseball Properties, Inc. whereby MDI has been granted the exclusive rights through 2010 to produce and distribute State lottery tickets featuring the trademarks associated with Major League Baseball, including the MLB silhouetted batter logo, the World Series, League Championship Series, Division Series, and All-Star Game logos, as well as the logos of the Major League Baseball Clubs. In addition, Major League Baseball-themed prizes (such as game tickets and merchandise) will be offered with the lottery tickets.

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This is truly big news for MDI and lotteries everywhere,” said Steve Saferin, president of Scientific Games Ventures and MDI Entertainment. “Lotteries have long been interested in promoting the Major League Baseball Clubs within their territories. We’re proud to say that MLBP has selected MDI as its exclusive lottery marketing licensee and we look forward toworking with lotteries, MLBP and the individual teams to offer the most exciting and entertaining lottery scratch product ever.

Obtaining Major League Baseball licensing rights will help lotteries boost their revenue by creating new opportunities for fans to show their affinity for their favorite Clubs,” said Lorne Weil, Chairman and CEO of MDI parent company Scientific Games. “We are confident that new Major League Baseball themed games will hit home with lottery players and help our instant ticket customers grow their business, resulting in more funding for education and other good causes.

MDI Entertainment expects several lotteries to introduce MLB games this year, with many more launching next year based on significant interest shown from across the country. The first MLB game will launch in Massachusetts on April 11 and will feature the Boston Red Sox.

Along with Major League Baseball, MDI also has exclusive licensing agreements with the NBA, the NHL and NASCAR.

About Scientific Games

Scientific Games Corporation is the leading integrated supplier of instant tickets, systems and services to lotteries, and the leading supplier of wagering systems and services to pari-mutuel operators. It is also a licensed pari-mutuel gaming operator in Connecticut 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 website at www.scientificgames.com

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About Major League Baseball Properties

The Major League Baseball Clubs formed Major League Baseball Properties (MLBP) in 1966 as the Club’s agent for marketing and trademark licensing and protection. Major League Baseball Properties is responsible for managing consumer licensing activities, developing national advertising campaigns, cultivating sponsorship opportunities with major consumer brands and corporations, growing the game and the business of baseball outside the United States and creating national marketing programs in conjunction with Clubs, broadcast rightsholders and national sponsors. MLBP also operates a full-service video and audio production unit (Major League Baseball Productions), a publishing division and stock photo licensing agency, and manages logistics for the All-Star Game and World Series as well as all other special events.
For more information on Major League Baseball, log on to www.MLB.com.

Company Contact: Investor Relations, Scientific Games Corporation, Phone: 212-754-2233

SOURCE: MDI Entertainment media release.


New President of Multi State Lottery Association Board Named

CHARLESTON, West Virginia (March 24, 2006) -- On March 15, a West Virginian took the lead of the country’s largest lottery gaming organization, the Multi-State Lottery Association (MUSL) most commonly known for it multi-million dollar jackpot producing Powerball game.

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State Department of Revenue Acting Cabinet Secretary and Lottery Director John C. Musgrave became president of MUSL Board of Directors, an organization comprised of the executive directors of 31 U.S. lotteries.

Musgrave has steadily advanced in the ranks of U.S. lottery directors since his appointment as Director of the West Virginia Lottery in 1997. Today, he serves as secretary of the North American Association of State and Provincial Lotteries (NASPL), the largest lottery organization in the Western Hemisphere consisting of all U.S. lotteries, all Canadian provincial lotteries and three Caribbean lotteries including the U.S. Virgin Islands, Puerto Rico and Aruba. Unlike MUSL, NASPL does not administer lottery games.

This marks the first time that a West Virginia Lottery director has served as the president of the MUSL Board of Directors and as an officer of NASPL," Musgrave said. “I’m honored to have both the privilege and the responsibility to serve as a leader in an industry that provides billions of dollars of revenue for the well being of others.

In the MUSL association, Musgrave has served as chairman of several game groups including the Powerball Game Show group, the Video Lottery group, and the Powerball group. He was elected vice-president of MUSL in 2005, and he will continue to serve as chairman of the Powerball game group through June 30, 2006.

Under Musgrave’s leadership, the West Virginia Lottery produced sales of over $7.6 billion and has generated over $2.7 billion in state revenues dedicated to education, senior citizens and tourism. Musgrave ushered in the full operation and regulation of the state’s four licensed racetracks and the limited video lottery program, both of which have contributed to the state’s revenues to fund projects such as the PROMISE scholarship program and the Homestead Exemption Act.

Prior to Musgrave’s appointment as Director, the lottery’s 1996 fiscal year sales were a mere $210 million.

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“The success of video lottery at the state’s four licensed racetracks was the key to generating increased revenues,” Musgrave added. “Not only do the tracks generate funds through gaming, they serve as a critical component of West Virginia’s tourism industry – creating jobs and economic development opportunities.

Musgrave added that the limited video lottery program, while challenging, has proven its worth as well. “The additional $396.3 million in revenues to fund state programs will bring the projected sales for 2006 to approximately $1.4 billion.

As director of one of the lottery industry’s great success stories, Musgrave said that he has always understood the responsibilities that come with success. “It was clear to me, from the beginning, that we needed a much stronger, more proactive program for persons with gambling problems,” he said. “Today, $500,000 a year from racetrack video lottery revenues and $1 million a year from limited video lottery revenues fund one of the nation’s most recognized programs for problem gamblers.”

SOURCE: West Virginia Lottery.

Internet Gaming Increases Its Popularity

VEIKKAUS, Finland (March 22, 2006) -- Veikkaus' internet service www.veikkaus.fi is one of the greatest web stores in Finland. Last year our turnover from web sales went up to EUR 160 million, which is over twelve percent of Veikkaus entire turnover. In addition to gaming over the internet, you can play our games by wap phones and some of them even by sms.

Every week some 120,000 Finns play Veikkaus games through our web service. The most popular web games are sports games, but people also play Lotto and Keno. Since last summer, we have also offered our customers the chance to play two of our scratch card games on the net: Horoscope and Nature Instant are now available in web versions. The eInstant scratch cards have attained a steady popularity.

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Veikkaus' web service went through the most thorough reform of its history at the turn of the year, as we opened our new website, including an entertaining dreams site for our customers. We will continue to develop the website this year, focusing especially on the services offered to sports fans. We are also currently testing a new Keno selector in cooperation with the TV channel MTV3. At a later stage, we will launch an easy-to-use gaming module of Lotto. The new way of gaming can be tested initially only on the channel's website at www.mtv3.fi/matkailu/ (in Finnish).

In December ten years will have passed since Veikkaus started to sell games on the internet as the first national lottery in the world. After a pilot phase, we opened the service to the public in 1997. You have to be at least 18 to play through Veikkaus' electronic channels.

SOURCE: Veikkaus' eNews distributed by Veikkaus Communications.


INTRALOT Sponsors Two Major Cultural Events

ATHENS, Greece (March 27, 2006) -- INTRALOT considers its economic growth to be inseparably linked to its active involvement in a wide spectrum of social events and initiatives and is therefore currently sponsoring two upcoming events which will take place in London and in Cairo.

On March 29, 2006 Cadogan Hall will host the first of a series of concerts with the Royal Philharmonic Orchestra, which will be conducted by the renowned Greek maestro, Mr. Nicholas Michalakis. Because the series is one of the few times when a Greek conductor performs in one of the largest concert halls in London and with one of the most prominent orchestras in the world, INTRALOT is proud to support it by its sponsorship. 

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On April 3, 2006 a majestic concert will take place in the Pyramids of Egypt. The famous Greek composer, Mr. Yiorgos Hatzinasios, in collaboration with the symphonic orchestra and the choir of the Opera of Cairo, presents the opus “Ode to Alexander the Great" This concert is part of the celebration of the 100th anniversary of the Greek Community in Cairo and depicts the victorious army commander’s personality and course through the ages. INTRALOT is proud to support this event as it further demonstrates the impact of Alexander’s life in world history and promotes the Greek element in Egypt.

Such events, which exalt the fine arts internationally, will always hold a prominent place in INTRALOT’S sponsorship agenda.

About INTRALOT (www.intralot.com)

  INTRALOT, a public company listed on the ASE, 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. With 33 subsidiaries, 8 business offices, more than 2,700 people and revenues of € 523 million for 2005, INTRALOT’s footprint straddles five continents.

SOURCE: INTRALOT media release.
For more information please
CONTACT: Ms. Evi Ioannidou, Communications Director, Phone: +30-210-6156000, Fax: +30-210 6106800, Email: ioannidou@intralot.com.


Made in Kansas Lottery Promotion Delivers Second Chevrolet Malibu

TOPEKA, Kansas, USA (March 24, 2006) -- One lucky Kansas Lottery player won a 2006 Chevrolet Malibu Maxx today, when Governor Kathleen Sebelius drew her name in the $2 Made in Kansas instant scratch game second-chance drawing. Governor Sebelius was the special guest draw official for the drawing, which took place in the second floor rotunda of the State Capitol.

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The winner of the Malibu Maxx was Kimberly Nading of Garden City. Nading’s grand prize includes mandatory state and federal withholding taxes and other applicable initial taxes and fees, and is valued at approximately $38,500.

Nading’s winning entry was drawn from 44,358 entries received by the Lottery. Players had been mailing in their non-winning “Made in Kansas” tickets since the game was launched last October for a chance to win one of two Malibus.

The Chevrolet Malibu is manufactured at the GM facility in the Fairfax area of Kansas City, Kan. It is the only automobile-manufacturing facility in Kansas.

The Lottery printed 630,000 “Made in Kansas” tickets, and the game was nearly a sell-out. The “Made in Kansas” ticket is one in a series of Kansas-themed lottery tickets celebrating Kansas business and industry, as well as Kansas attractions. Players were able to win up to nine times on the $2 “Made in Kansas” ticket, and the top cash prize was $10,000.

Other Kansas-themed tickets currently on sale are:

  • Kansas Chopper (Big Dog Motorcycles, Wichita);
  • Kansas Lottery $200 Grand (Kansas Speedway); and
  • Golf Giveaway (2006 U.S. Senior Open and Prairie Dunes Country Club, Hutchinson).

The Lottery is also currently conducting the 2by2 Sierra Giveaway promotion with the 3i Show and GMC.

SOURCE: Kansas Lottery.
CONTACT: Sally Lunsford (785) 296-5708, email: sally.lunsford@kslottery.net.


La Française des Jeux Joker+, One More Chance to be Lucky!

Joker+
New Joker+ is available with Loto, Keno, Euro Millions and Super Loto.

FRANCE (March 29, 2006) -- On March 26, La Française des Jeux changed its add-on game Joker for a new and improved passive game called Joker+. With Joker, people could play this game in combination with Loto only; the new Joker+ is available with Loto, Keno, Euro Millions and Super Loto.

The logo was also revised in order to strengthen the new game’s identity.

Introduced in October 1999, Joker has seen several renewals like the introduction of a second number printed on the playslips in 2003. Players could decide whether to play 1 Joker or 2 Joker numbers. In 2004, the pre-printed numbers were withdrawn from the playsplips to be random-generated on the receipts by the terminal.

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More chances…
Joker+ keeps the seven-digit number formula but offers more chances to win: players can now win by matching 1, 2, 3 … or 7-digit numbers from right to left (as it used to be) and from left to right (if they choose to bet 2 euros. The winnings are then cumulated).

Example:
Winning Joker+ number: 6 412 272
Player’s Joker+ number: 6 629 372

The player matches the first digit and the last 2 digits.
a) if he bets 1 euro, he wins 5 euros 6 412 272
b) if he bets 2 euros, he wins 12 euros (i.e. 2 euros + 10 euros) 6 629 372

More winnings
Winnings are doubled with the new 2 euros price point. Players can win up to 500,000 euros by matching the 7-digit number.
Overall odds of winnings a prize are 1 in 5 for Joker+ compared with 1 in 10 for Joker.

Loto, Euro Millions, Super Loto Joker+ prize structure

Number of matches
(in exact order)
Prizes for a stake of
1 euro 2 euros
All 7 digits 250,000 euros 500,000 euros
6 first / last digits 25,000 euros 50,000 euros
5 first / last digits 2,500 euros 5 000 euros
4 first / last digits 500 euros 1,000 euros
3 first / last digits 50 euros 100 euros
2 first / last digit 5 euros 10 euros
First / last digit 1 euro 2 euros
Overall chances of winning a prize 1 in 5.3

More Joker+ on Keno

For Keno (daily draw game), players can choose to play up to 3 Joker+ numbers, i.e. a 7-digit number, a 6-digit number or a 5-digit Joker+ number. Each of the 3 combinations has his own prize structure. 

Keno Joker+ prize structure

Number of matches (in exact order) Prizes for a stake of 1 euro
Joker+ 7 Joker+ 6 Joker+ 5
All 7 digits 250,000 euros    
6 first / last digits 25,000 euros 50,000 euros  
5 first / last digits 2,500 euros 2,500 euros 500 euros
4 first / last digits 500 euros 250 euros 250 euros
3 first / last digits 50 euros 50 euros 50 euros
2 first / last digit 5 euros 10 euros 5 euros
First / last digit 1 euro 1 euro 2 euros
Overall chances of winning a prize 1 in 5.3

Draw frequency: 14 draws per week

14 Joker+ numbers are drawn every week, i.e. 2 draws per day (midday and evening to adopt Keno draws’ rhythm).

  • On Wednesday & Saturday nights, a unique Joker+ number is drawn, valid for both Loto & Keno draws;
  • On Friday nights, a unique Joker+ number is drawn, valid for both Euro Millions & Keno draws; and
  • The rules are the same for Super Loto.

SOURCE: La Française des Jeux.
CONTACT: Antonia Dadoun, Email: adadoun@lfdj.com


Norsk Tipping CSR Report Verified by DNV

HAMAR, Norway (March 30, 2006) --- The Norwegian National Lottery, Norsk Tipping, are one of the first companies to have our CSR report verified by DNV, one of the world's leading certification companies. The verifying is based on AA1000AS standards.

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The accountants from DNV looked through every single word in the CSR report, and were satisfied with the companies work in the area of social responsibility.

“The Norwegian National Lottery, Norsk Tipping, gives a solid impression of being genuinely engaged with the companies work in the area social responsibility. Norsk Tipping is clearly aware of the amount of challenges attached to their high level of ambitions. The company started the implementation of its ethical mind set, but the process must continue”.  

Norsk Tipping are also certified by DNV after WLA-Security Control Standards, and are recertified every year.

SOURCE: Norsk Tipping AS.
CONTACT: Bjørn A. Takle, Press spokesman, Tlf: +47 62 51 40 00, Mob: +47 41 61 42 32, Fax: +47 62 51 40 96.


2005 Charitable Bingo Gross Receipts Top $633.6 Million, Sixth Largest-Ever Year Since 1982

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AUSTIN, Texas, USA (March 23, 2006) - Non-profit organizations across Texas that conduct charitable bingo games reaped significant gains during calendar year 2005, bringing in just over $633.6 million or 4.8 percent more in gross receipts than in 2004. “Calendar year 2005 was the sixth-highest year for gross receipts since we started keeping records in 1982, and $29.1 million above the 2004 figure of $604.5 million,” said Billy Atkins, director of the charitable bingo division of the Texas Lottery Commission. “The gross receipts are a clear indicator of bingo’s popularity, and they also tell the story of why there was a notable rise in total prizes. Prizes in 2005 were $471,390,751, $26.8 million more than in 2004.” Most of the 1,265 non-profits that conduct charitable bingo games to raise money for their charitable causes also sell pull-tabs.
For more information about charitable bingo, please visit the official Texas charitable bingo Web site at http://www.txbingo.org
SOURCE: Texas Lottery Commission Press Release.
CONTACT: Leticia Vasquez, Phone: 512-344-5208.

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