Monday June 19, 2006

EL Interactive Gaming Seminar Report

LJUBLJANA, Slovenia (June 9, 2006) -- The 2006 Interactive Gaming Seminar, organized by the EL New Media Working Group and the Secretary General of the European State Lotteries and Toto Association, and hosted by Loterija Slovenije, was held in Ljubljana from May 31st to June 1st 2006.

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This is, in fact, the first time the EL Association has held a seminar in Slovenia. Over 70 representatives from European Lotteries Members actively participated in the Interactive Gaming seminar.

Mrs. Irena Medvesek, Member of the Board Loterija Slovenije and Mr. Leon Losch, Member of the EL Executive Committee, welcomed the participants and formally opened the seminar.

There was a packed two-day program which covered the main issues and topics of Interactive Gaming as it applies to the Lottery sector, such as:

• Legal Interactive Gaming Environment;
• Players’ profile and gaming practices;
• Technologies and future challenges;
• New Games ideas and market overview;
• Innovation within EL Lotteries;
• Selling through innovative channels;
• Live Betting;
• Personalization and Communities in Interactive Gaming; and
• Interactive Gaming Demonstrations

Panels on Technologies – Future Challenges and What’s Next – the Future provided ample opportunity for lively discussions and exchanges on different Lottery environments, as well as between the Lotteries and suppliers.

Combined with the presentations and the panels, the social part of the program provided additional opportunities to interact with top-level executives and to network with a diverse mix of participants from all over Europe. Over the course of these two days, speakers and panelists alike shared their experience and expertise with the audience, and deep discussions were held.

Ms. Marjeta Bratasevec, Head of Sales Department Loterija Slovenije, and Ms. Bernadette Lobjois, EL Secretary General, formally concluded the seminar.

A USB Flash memory drive, containing a copy of the presentations, was provided to all the participants before their departure.

SOURCE : Bernadette Lobjois, Secretary General, European State Lotteries and Toto Association, Switzerland (e-mail : info@european-lotteries.org).

Move to Easy Street with 'Set for Life' Promotion

CHICAGO, Illinois, USA (June 8, 2006) -- If you've ever considered buying a lottery ticket, this is the summer to start. The Illinois Lottery is giving away $200 million in total available prizes through its largest ever second chance promotion, called "Set for Life."

The Lottery is holding weekly drawings for 16 weeks, where one winner will be randomly drawn to participate in a not-to-be-missed grand finale event on Sept. 30th at Wrigley Field. The 16 lucky winners will walk away with one of the following: $100,000 a year for life, the cash equivalent of a new leased car every year for life or the cash equivalent of a fabulous vacation every year for life.

"Every year, the Lottery strives to bring its players the ultimate winning experience, and this year we've really outdone ourselves," said Illinois Lottery Superintendent Carolyn Adams. "At times like these, I really wish that I could play!"

To enter, players must send in $30 worth of eligible non-winning tickets from the "Set for Life" instant ticket suite or any "Pick 'n Play" tickets. Players can mail in entries or submit online at http://www.illinoislottery.com by Sept. 1.

"It's always such a rewarding experience for the Lottery when we see our players win big, but 'Set For Life' takes things to a whole new level," added Superintendent Adams. "It's amazing that we're able to reward our players with prizes that they can appreciate for the rest of their lives; this is huge for us!"

SOURCE: Illinois Lottery.
CONTACT: Courtney Hill, +1-312-255-3125 (office), +1-312-342-4273 (cell), or Mia Sissac, +1-312-255-3073 (office), +1-312-636-6303 (cell), both for Illinois Lottery.

Another Major Order for KEBA from the Österreichische Lotterien GmbH – KEBA Remains the Exclusive Supplier

LINZ, Austria (June 7, 2006) -- KEBA AG, the Linz automation professionals, wins the international call for quotations by the Österreichische Lotterien for more than 4,400 new lottery terminals, thus defending its position as exclusive supplier.

8,700 lottery terminals of the KEBA KeWin terminal family have already been in successful use for the Österreichische Lotterien for many years. Austria’s lottery agencies will now be equipped with the latest generation of terminals.

The granting of the order for new lottery terminals in May 2006 continues a longstanding, successful partnership. The new order includes the delivery of 4,400 KeWin multimedia terminals.  In 1999, KEBA equipped 4,200 lottery agencies in Austria for the first time with KeWin multimedia terminals, the high-speed lottery terminals for agencies with medium to large betting slip volumes. Three years later, KEBA scored once more with high quality, features and best price/performance ratio, again prevailing against international competition. In 2002/2003, 4,780 KeWin mini terminals were delivered to the Österreichische Lotterien. The latest generation of KEBA terminals differs from its predecessors in the integrated barcode reader and in the connection options via both fixed line and wireless networks, as well as in an additional thermal print head for stamping the receipts.  “In addition to the high level of satisfaction with the terminals already out in the field, the exceptional product features such as the speed and precision of our systems were crucial for the renewed success of KEBA with the Österreichische Lotterien”, according to Gerhard Luftensteiner, Board Member of KEBA AG.

The KeWin multimedia terminal offers maximum reliability and constant availability through the combination of high-quality PC components with industry standards and state-of-the-art PC technology. The operation and display via the graphics-capable TFT color display with touchscreen, the high-performance scanning of betting slips up to DIN A4 with the highest recognition rates and the automatic data processing were able to convince the Österreichische Lotterien once again.  Furthermore, as well as the most powerful and most reliable system, KEBA offers the quietest product on the market at the same time because, in contrast to competitor products, the KeWin terminal uses just one fan. The KeWin multimedia terminal achieved the highest score in the technical evaluation during the selection process. And even an external testimonial, created by the A-SIT center for reliable information technology, determined that the KEBA terminal best meets the demands of the Österreichische Lotterien.

In addition to the impressive product features, the great flexibility of the Linz terminal manufacturer proved decisive as KEBA was able to quickly and professionally implement the adaptations specific to the Österreichische Lotterien.

About KeWin: The principle of the family
The highest degree of modularity is the exceptional feature of the KeWin terminal family, which enables a terminal mix of the KeWin multimedia and KeWin mini systems to be precisely matched to the betting slip volumes of the respective lottery agencies.
This means one-off investments can be technically and functionally extended to optimally adapt to changing market conditions and applications. Above all, the common hardware and software architecture makes the family flexible and cost effective so the system components can be individually configured as required, thus enabling them to be perfectly tailored to the specific requirements.  KEBA KeWin terminals have an open system architecture that allows freedom of choice with regard to operating systems and HOST connections.

About KEBA AG:
An Upper Austria showcase company continues on its successful course KEBA is one of the top electronic companies in Austria. The foundation stone for the KEBA AG of today was laid in 1968. Currently, 650 members of staff are employed in the AG and its subsidiaries. KEBA AG, the Linz automation specialist, recently achieved a turnover of 90 million Euro. KEBA has been active in the international arena for many years and generates about 75 % of its revenue from abroad.

Innovation as the factor for success
In accordance with the maxim “Automation by innovation”, KEBA annually invests 20 % of its turnover in research and development. The high level of R&D is the basis for a great many successful new products.  These include KePlast, the industry solution for plastic injection molding machines, the Rondo 4cashcycle+ combined pay-in and pay-out cash terminals that is successfully in use at the Deutsche Bank and Commerzbank as well as the KePol automatic parcel system developed in collaboration with the Deutsche Post for which KEBA and the Deutsche Post received the World Mail Award in 2004.  Image text: KeWin multimedia – will be deployed at the agencies of the Österreichische Lotterien throughout Austria over the next few years.

SOURCE: KEBA AG.
CONTACT:   Helena Balaouras, Marketing Communication, Phone: +43 732 7090-5443, Email: bal@keba.com

Scientific Games to Implement and Operate Electronic Bingo Game for Michigan Lottery  Five-Year Pact for New Game Valued at $4 Million

NEW YORK, USA (June 8, 2006) -- Scientific Games (Nasdaq: SGMS) has been awarded the contract to operate the new progressive jackpot electronically linked bingo game (ELBG) for the Michigan Lottery. The five-year contract, valued at approximately $4 million, grants exclusive rights to Scientific Games. The new ELBG system will electronically link approximately 600 bingo halls and offer larger progressive jackpots to the players. The new system will also provide additional security and monitoring capabilities to the Michigan Lottery.

“Bingo brings important funding to the state of Michigan,” said Lorne Weil, Chairman and CEO of Scientific Games. “We are looking forward to working with the Michigan Lottery and Charitable Gaming to introduce these game enhancements that will help to increase both revenues and attendance.”

“Scientific Games submitted the strongest proposal for this new kind of game and I am eager for them to begin implementing it,” said Gary C.  Peters, Commissioner of the State of Michigan Bureau of State Lottery. “I believe the legions of Michigan bingo players are going to love it.”

The Michigan Lottery has contributed approximately $12.9 Billion to Michigan’s educational system since 1973, including more than $600 Million in six of the past eight fiscal years.

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 web site at http://www.scientificgames.com.

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

SOURCE: Scientific Games.

Long Running Lottery TV Show to Retire This Fall -- New, Interactive Game Show “Make me Famous, Make Me Rich” to Take Its Place

OHIO, USA (June 12, 2006) -- Say farewell to Cash Explosion Double Play, which will air its final episode on Saturday, September 30. One of the lottery industry’s longest-running TV shows, Cash Explosion Double Play will be replaced by Make Me Famous, Make Me Rich. The new Ohio Lottery TV show debuts statewide at 7:30 p.m. Saturday, Oct. 7, in the same time slot occupied by Cash Explosion Double Play.

“Over the 19-year run of Cash Explosion Double Play, we’ve learned that players not only enjoy winning, but get really excited about appearing on a television show,” said Lottery marketing director Roderick Ingram. “The new game show builds on that excitement, allowing 30 contestants to appear on each episode.”

Like its predecessor, the key to getting on the show is the instant ticket Make Me Famous, Make Me Rich, which goes on sale Friday, Aug. 4. The Make Me Famous, Make Me Rich instant game comes in a $1 and $2 extended-play ticket option.

The $2 ticket offers additional play and prize value, and a special prize premium for TV show contestants. Players of the $2 game can also enter a special merchandise prize drawing that could ultimately lead to a stint as co-host of the show!

Cash Explosion tickets will continue to be sold and can be used to enter the Make Me Famous, Make Me Rich contestant drawing.

Since its debut in February 1987, Cash Explosion Double Play has remained a top-rated TV show in its time slot. More than 7,900 contestants have won more than $138 million in cash and prizes. Look for more information about the new game show and the wind down of the Cash Explosion game in the weeks ahead.

SOURCE: The Ohio Lottery Commission media release.

"Harley-Davidson" Scratchers Game Promotion

JEFFERSON CITY, Missouri, USA (June 2, 2006) -- A player in Wentzville became the first player to uncover a brand new 2006 Harley-Davidson® Fat Boy® vivid black motorcycle on a Missouri Lottery "Harley-Davidson®" Scratchers ticket.

The player bought the winning ticket in Wentzville, on May 28.

In addition to the motorcycle, the Lottery will pay the withholding taxes on the prize package, which is worth more than $25,000. The ticket holder will also receive $250 cash and a $250 Genuine Harley-Davidson Merchandise in-store credit.

The "Harley-Davidson" Scratchers game and the promotion officially started May 27. By buying a $5 "Harley Davidson" ticket, Lottery players have a chance to instantly win up to $100,000 in cash or one of 10 2006 Harley-Davidson Fat Boy vivid black motorcycles plus $250 cash and a $250 Genuine Harley-Davidson Merchandise in-store credit.

Non-winning "Harley-Davidson" tickets can also be entered into one of three drawings in the "Ticket to Ride" promotion for a chance to win a grand-prize 2006 Ford Harley-Davidson? F-150 truck and $500, one of three Fat Boy motorcycles, or one of 900 Harley-Davidson prize packages. The drawings will be held July 5, Aug. 2 and Oct. 4. All entries received during the promotion will be eligible for the grand-prize truck during the final drawing on Oct. 4.

An entry into the promotion consists of one $5 "Harley-Davidson" Scratchers ticket.

For more information about the new game and summer promotion, go to www.molottery.com.

SOURCE: Missouri Lottery.

New Mania in Hungary: Car Mania

BUDAPEST, Hungry (June 13, 2006) -- Szerencsejáték Zrt., the national Lottery of Hungary, launched a new scratch ticket on June 3, which brought outstanding results. Income from this scratch ticket called “Autómánia” (Car mania) reached €60 000 euros the first day which means a 24 % increase compared to the best ticket in the 200 HUF price category.

In the assortment this is not the second ticket with special top prize, offering a car voucher worth 5.000.000 HUF or €20.000 EUR. “Banknote” was the first ticket what they tried with car voucher in the top prize.

The ticket targets male customers, as they are under-represented among the players. The

appealing and elegant black design of the ticket and eight (8) car vouchers as top prize definitely meets this goal. The voucher gives the winner the opportunity of choosing any preferred car.

The ticket was designed and printed by Scientific Games.

There are two games on the ticket. In the first game nine amounts can be found. If three same amounts appear under the latex, the player will win this amount.

In the second game, one car number plate is revealed. If the player matches this number plate with one of the eight (8) number plates on the official poster placed at the retailer and printed on the reverse of the ticket also, the player wins the top prize, a car voucher worth five (5) million HUF.

More information email: Ms. Györgyi Buvár (buvar.gyorgyi@szerencsejatek.hu)

SOURCE: Szerencsejáték Zrt. Media release via European State Lotteries and Toto Association (EL).

Lottery Dynamics Launches Lotto Gold+™ Program in the Ukraine

IRVING, Texas, USA (June 14, 2006) - Lottery Dynamics launched its Lotto Gold+™ program with the Ukrainian National Lottery (UNL) on June 7 with a highly successful debut and a 10 million UAH jackpot winner who played the Super Loto game for 3 UAH.

Lotto Gold+™ is a unique, patented game that provides player choice and player value by offering three ticket-price entries and three ways to participate in the jackpot. This game is designed to help lotteries increase sales  by 40-100 percent and boost transfers to good causes.

Super Loto is built around a 6 of 54 matrix. The game also includes a bonus ball feature which helps players win the second category prize with 5 matching numbers and the bonus ball. There are also prizes for players who correctly match three, four or five numbers. All secondary prizes are fixed and are not dependent on the number of winners.

All jackpots for Super Loto will start at 10 million UAH for a 3 UAH ticket and are guaranteed by Lottery Dynamics and its strategic partners.

“We are very excited about the prospects for Super Loto,” said Stephan Egli, chairman & president of Lottery Dynamics. Super Loto allows players to bet at their own level and enjoy higher jackpots than standard Lotto games which are based on a pari-mutuel structure. “Players like choice and giving them ticket prices of 1, 2 and 3 UAH for a chance of higher winnings will result in higher average revenue per ticket sold and therefore greater revenues for lotteries and good causes,” Egli noted.

About Lottery Dynamics LLC
Lottery Dynamics LLC, based in Irving, Texas, is a company with a mission to re-energize Lotto and other lottery games with proprietary programs highlighting player choice, player value and player excitement. The company’s programs work with any matrix and any currency around the world and are designed to build lottery sales by 40-100 percent over current levels.
For further information, go to www.lotterydynamics.com.

SOURCE: Lottery Dynamics LLC.
CONTACT: Karen Lazarovic, VP, Corporate Communications, Phone: (972) 868 9095, Fax: (972) 868 9079.

With Sales Up 2%, Loto-Québec's Revenues Exceed the $4 Billion Mark During Fiscal 2005-2006

MONTRÉAL, Quebec, Canada (June 14, 2006) - With consolidated revenues of $4.016 billion (+2%) and net income of $1.614 billion (+1.9%), Loto-Québec remitted a total of $1.537 billion (+1.7%) in dividends to the Québec Government during the fiscal year ended March 31, 2006.

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These modest increases represent new levels of performance within each of the Corporation's three key financial indicators, with revenues, most notably, exceeding $4 billion for the very first time. Complete results for the past fiscal year are outlined in Loto-Québec's 2005-2006 Annual Report, which was tabled in the National Assembly today by provincial Finance Minister Michel Audet.

All three of Loto-Québec's principal activity sectors contributed to the increase in the Corporation's total revenues. In the case of Lotteries, for example, the renewal of product offerings and the continuous upgrading of the distribution network proved to be profitable strategies. With respect to the Casino sector, the increase in overall earnings is all the more noteworthy in view of the Casino de Charlevoix's difficult challenges related to the lengthy strike at the Fairmont Le Manoir Richelieu. For its part, the Video Lottery sector's 5% increase in revenues during the past year is markedly below the 9.6% growth recorded in fiscal 2004-2005.

"This past fiscal year was a memorable one from a number of different standpoints," underlines Alain Cousineau, President and Chief Executive Officer of Loto-Québec. "Marked by a major debate about the relocation of the Casino de Montréal, the year just ended also saw a reduction in the number of video lottery terminals in place, the adoption of new measures to combat excessive gaming, the continuation of preparations for the opening of our gaming centres, and the Corporation's penetration into the French casino market."

Reduction of Video Lottery Terminals (VLTs)
As of the end of fiscal 2005-2006, the video lottery terminal (VLT) network was comprised of 13,516 units installed at 3,122 sites - representing 491 fewer units and 145 fewer sites than at the start of the year. The majority of the reductions came during the last four months of the year, when 303 machines and 79 sites were cut from the network. As such, the reduction targets outlined in the Corporation's 2004-2007 Development Plan should be attained in 2007 as projected.

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New Measures to Combat Excessive Gaming
The accelerated reduction in the number of video lottery terminals and sites coincided with the implementation of two new voluntary VLT withdrawal programs offered to retailers since autumn 2005. In addition, a series of other measures were introduced during the course of the year aimed at better controlling access to video lotteries and promoting responsible gaming behaviour among VLT players. One of these measures targets municipalities where the ratio of terminals per 1,000 inhabitants is higher than the provincial and Canadian averages. Another initiative - a first within the industry -involves the implementation of a responsible marketing code to which all bar owners must adhere.

Establishment of Gaming Centres
The reduction in the number of VLTs and sites heralds the final phase of the network's reconfiguration- the establishment of new gaming centres, an operation which the Québec Government approved in principle in November 2004. During the past fiscal year, Loto-Québec devoted considerable effort to putting the organizational and operational structures into place for the future establishments.
The four planned gaming centres will house some 1,770 of the 2,500 VLTs withdrawn as stipulated in Loto-Québec's 2004-2007 Development Plan. Two of the new centres will be located at existing racetracks in Trois-Rivières and Québec City respectively. A third centre will be established adjacent to a new racetrack to be built on the northern tip of Montréal, while the fourth will be located at Mont Tremblant. The first gaming centres could open their doors in 2007, pending prior authorization from the Québec Government for each one.

Timely International Expansion
The year just ended was also marked by Loto-Québec's expansion into the French casino market. Commenting on the Corporation's investment of $87 million for the acquisition of interest in the Moliflor group, the third largest casino operator in France, Mr. Cousineau points out that this investment represented a solution to the organization's revenues having reached a certain ceiling. "Our interest in Moliflor will enable us to pursue our growth strategies and increase our net income, while generating economic benefits for the province as a whole, especially for suppliers of professional services."

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A Market That Has Reached a State of Maturity
Modest but real, the growth in revenues and profits posted during the year just ended is all the more remarkable given the fact that they were achieved without any overall increase in game offerings and within the context of a market that has reached a state of maturity. "This positive performance testifies to the outstanding professionalism and creativity of our personnel," emphasizes Mr. Cousineau, who also acknowledges the diligence and excellent work of his Executive Committee and the enlightened guidance received from the members of the Corporation's Board of Directors.

Major Economic and Other Spin-Offs
The operations and activities of the last reporting period also generated highly positive spin-offs in a number of respects. The three casinos, for example, logged a combined total of 10.6 million visits, while the Corporation and its subsidiaries purchased goods and services valued at $394.6 million. Moreover, Loto-Québec awarded a total of $984.6 million in prizes to lottery and bingo winners, along with $427.3 million in commissions and other compensations to retailers and lottery, video lottery and bingo network partners. Finally, some $35 million was devoted to the fight against excessive gaming.

2005-2006 Financial Highlights (in thousands of dollars)

SOURCE: Loto Quebec.
For further information please CONTACT: Jean-Pierre Roy, Director of Media Relations, Phone: (514) 499-5151.

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