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Vol. 35 No. 8-- Monday May 29, 2006
MDI Entertainment Inc.
Oberthur Gaming Technologies
KEBA AG

Smartplay International Inc.

  • GTECH Selected by the Virginia Lottery to Provide New Lottery Central System, Terminals, Communications Network, and Ongoing Services. Full Story
  • INTRALOT Announces First Quarter 2006 Results. Full Story
  • Biggest New Zealand Lottery Prize Ever. Full Story
  • MDI Entertainment Extends Pink Panther™ License. Everyone’s Favorite Cool Cat Remains Available to Lotteries World-Wide Full Story
  • Lucky From the Start; Minnesota Creates
    New Town to Promote Lottery. Full Story
  • Veikkaus' Headquarters Celebrates 30 Years in the City of Vantaa. Full Story
  • G2S Protocol to Take Center Stage at GSA and HTNG Partner for Gaming Technology Summit. Full Story
  • The ordinary General Meeting of SAZKA, a.s. Approved the Company’s
    Record Economic and Financial Results for 2005. Full Story
  • Celebrate Powerball's 10th Birthday with Australia's Biggest Morning Tea Cake!. Full Story
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Wincor Nixdorf

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GTECH Selected by the Virginia Lottery to Provide New Lottery Central System, Terminals, Communications Network, and Ongoing Services

WEST GREENWICH, Rhode Island, USA (May 22, 2006) -- GTECH Holdings Corporation (NYSE: GTK) today announced that its wholly-owned subsidiary, GTECH Corporation, has been selected as the apparent successful vendor by the Virginia Lottery to provide a new lottery central system, new terminals, and a new IP wireless communications network, under a proposed seven-year integrated services contract. Today’s announcement follows a competitive procurement and includes three one-year extension options.

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The Virginia Lottery has successfully managed its systems and products that have produced outstanding results for nearly 18 years, and we understand that maintaining the Lottery’s high level of operational quality is the cornerstone of the trust and respect upon which their success is predicated,” said GTECH President and CEO W. Bruce Turner. “We are pleased that the Lottery has placed its confidence in GTECH to assist them in modernizing their systems and business management capabilities, and we look forward to this collaborative partnership in the years to come.

Under the terms of the proposed contract, GTECH will convert the Lottery’s existing online central system to the GTECH Enterprise Series™ solution. In addition, GTECH will replace the Lottery’s existing terminal base and install up to 5,250 Altura® terminals. The Company will also install a new IP wireless communications network.

GTECH will also provide the Virginia Lottery with 225 GamePoint™ machines, the Company’s all-in-one instant and online lottery self-service solution. Additionally, 250 Express Point Plus™ machines will be installed, which facilitate convenient player-activated identification of winning tickets.

GTECH will provide ongoing services to the Virginia Lottery including installation, operation, and maintenance of the online central system, terminals, and communications network; on-site marketing support; in-state hotline management; and field service.

This partnership is exciting for the Virginia Lottery, our retailers, and players,” said Virginia Lottery Interim Executive Director Donna M.VanCleave. “The Virginia Lottery has successfully operated it own gaming systems since 1988 when we began selling tickets. This new strategic business model will leverage technology to spur profitability for our retail partners, better serve our players, and ultimately, generate more revenue for Virginia’s public schools.

GTECH is the online lottery terminal provider for the Virginia Lottery and currently provides field service for the Lottery’s Clerk-Activated Terminals™ (CATs), self-service terminals, Instant-Ticket Validation devices (ITVs), printers, and Instant Ticket Vending Machines (ITVMs). As a subcontractor to the Lottery’s instant ticket vendor, GTECH is also responsible for the warehousing and distribution of instant tickets in addition to supplying ITVMs.

About Virginia Lottery
Since its inception in 1988, the Virginia Lottery has generated revenues of more than $15 billion. The Lottery has set sales records for the past seven years with overall sales surpassing $1.33 billion in fiscal year 2005. All profits from the Virginia Lottery go to K-12 public school education in the Commonwealth. In fiscal year 2005, the Lottery turned over more than $423 million for Virginia’s public schools, representing about 10 percent of state funding for public education in Virginia.

About GTECH
GTECH is a leading gaming technology and services company. With more than $1.3 billion in annual revenues and 5,300 people in over 50 countries, GTECH provides integrated technology, creative content, and business services to effectively manage and grow today’s evolving gaming markets. In targeted emerging economies, GTECH also leverages its operational presence and infrastructure to supply commercial transaction processing services.  For more information about the Company, please visit GTECH’s website at http://www.gtech.com.

SOURCE: GTECH Holdings Corporation.
CONTACT: Robert K. Vincent, Public Affairs, Phone: 401-392-7452.

INTRALOT Announces First Quarter 2006 Results

ATHENS, Greece (May 25, 2006) -- INTRALOT SA today announces its financial results for the three-month period, ending March 31st, 2006, prepared in accordance with IFRS. INTRALOT achieved to sustain a high growth rate both in its revenues and profits, as follows:

Consolidated Revenues for the period reached €179.8m, posting a 75.1% increase compared to 1Q05. EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) increased by 99.0% to €71.8m, compared to the same period last year. Earnings Before Taxes (EBT) recorded an increase of 71.6% y-o-y by reaching €65.6m compared to €38.3m in 1Q05. Earnings After Taxes and after minorities (EAT-am) increased by 31.3% y-o-y to €24.0m from €18.3m in 1Q05. Total International Revenues for the Intralot Group amounted to €137.0m, or 76.2% of total Group sales, compared with €73.9m, or 72% of total Group sales in 1Q05. International operations contributed a total of €47.6m or 72.5% to group EBT.

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Revenues for the parent company increased to €41.3m in 1Q06, 59.6% higher y-o-y (1Q05: €25.9m). Earnings Before Taxes (EBT) reached €16.0m in 1Q06, posting a 27.5% y-o-y increase, while Earnings After Taxes (EAT) reached €9.8m in 1Q06, posting a 43.3% y-o-y increase.

Commenting on 1Q06 results INTRALOT’s CEO, Mr, Constantinos Antonopoulos, noted: “It is our strong belief that 2006 will be a very important year for INTRALOT in terms of continuing growth and expansion - which is already evident in our 1Q06 results which prove that the course of our company within the international market makes INTRALOT a leader.

Our company’s establishment on a global basis and the fact that we are a one-stop-shop for the needs of State Lotteries around the world are expected to continue driving our growth in the future in order to deliver value to all our clients, shareholders, collaborators and employees who trust us. Our commitment is to use this trust as the fuel in our effort for accomplishing new and more demanding business and social ventures”.

One of the year’s highlights is that international operations have started to absorb the initial start-up costs and are delivering improved results (72,5% to group EBT for 1Q06), which is apparent in the rising profitability margins of 1Q06 and the company’s full-year guidance for 2006. This fact is very important given that  “Pame Stihima” in Greece has exhibited a very strong rebound as sales increased by 60,8%, after the successful changes implemented in cooperation with OPAP. Similar sports betting games have experienced strong growth in a number of countries where INTRALOT operates and are expected to gain even more ground due to the World Cup championship in Germany. 

Moreover, INTRALOT is expanding its presence in the significant Australasian region, which is considered to be key to the company’s future growth. Due to the increased importance and the prospects of this region, INTRALOT has recently established 2 HUBs of operations in Australia and Hong Kong, and has recruited highly experienced executives from the industry to run our business in the region.

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 37 subsidiaries, 8 business offices, 3,000 people and revenues of € 523 million for 2005 and €700(Ε) for 2006, INTRALOT’s footprint straddles five continents.

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


Biggest New Zealand Lottery Prize Ever
$18 Million Powerball Jackpot Won By Ticket Bought In Kaeo, Northland, Is Biggest New Zealand Lottery Prize Ever

NEW ZEALAND (May 21, 2006) -- A lucky Lotto player who purchased their ticket at Kaeo in Northland has won $18 million in Lotto Powerball First Division in tonight's draw, says NZ Lotteries Deputy Chief Executive Warren Salisbury.

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The owner of the ticket will collect a total prize of $17,992,975 with $17,702,362 from winning Powerball First Division and $290,613 from also winning Lotto First Division.

"With a total prize payout of $17,992,975. this is the largest Powerball jackpot ever won, by a single ticket, in New Zealand. The win will be a life-changing experience for whoever has the winning ticket," Mr. Salisbury said.

Mr. Salisbury's advice for the Powerball winner is to write their name and address on the ticket, confirming their ownership.

"They should then contact NZ Lotteries who can provide advice about the next steps to take," he said.

Previous to tonight's win the biggest Powerball win was $15.2 million, which was won by a ticket sold at Amigos Paper Power and Lotto in Auckland in September 2005.

SOURCE: Press Release New Zealand Lotteries Commission.


MDI Entertainment Extends Pink Panther™ License
Everyone’s Favorite Cool Cat Remains Available to Lotteries World-Wide

ALPHARETTA, Georgia, USA (May 19, 2006) -- One of the most famous animated characters in the world remains available to lotteries now that MDI Entertainment, a wholly-owned subsidiary of Scientific Games (NASDAQ: SGMS), has extended its agreement with MGM Consumer Products to exclusively offer lotteries the rights to everyone's favorite cool cat, Pink Panther™.

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"Pink Panther has been followed for generations both domestically and internationally," said Steve Saferin, MDI president. "Lotteries all over the world have had huge success with Pink Panther games. His fun and sly demeaner makes him one of the most endearing characters ever and because he is so easily recognized, a Pink Panther ticket really stands out among an instant game line up. This extension means a lot to lotteries and their players.

Pink Panther has his roots in the cinema where he first appeared in 1964 in the title sequences for Blake Edwards’ action comedy “The Pink Panther.” The movie starred Peter Sellers as Inspector Clousseau, the buffoon of a French detective trying to catch the thief who stole the Pink Panther diamond.

The audience loved the animation sequence and from there, Pink Panther became a star. Hundreds of cartoons and two Academy Awards later, Pink Panther reflects strong customer appeal among many generations and results in strong sales for lotteries from both core and new players.

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To date, more than 15 lotteries on four continents have launched a Pink Panther instant game or are planning to launch the game this year. Those that have run the game include the Belgium National Lottery, SWISSLOS, the British Columbia Lottery Corporation and multiple U.S. states. Overall, Pink Panther lottery sales have exceeded $83 million world wide.

In 2004, to celebrate Pink Panther’s 40th birthday, lotteries in Australia, Poland and Ireland all introduced a Pink Panther game at almost the same time. Domestically, New Jersey is currently running the game and the Texas Lottery is next to launch, scheduled for June.

About Scientific Games

Scientific Games Corporation (www.scientificgames.com) 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. MDI Entertainment, a wholly-owned subsidiary of Scientific Games Corporation, is the worldwide leader in licensed lottery games and promotions.

SOURCE: MDI Entertainment.
CONTACT: Jeff Schweig, 678-297-5212.


Lucky From the Start; Minnesota Creates New Town to Promote Lottery

MINNESOTA (May 18, 2006) -- The Minnesota State Lottery wanted to create a place where people could feel at home playing the lottery, so it, with help from Colle+McVoy, created an entire town where residents can live in a land where it rains money and the flowers are made out of dollar bills.

OK, so they didn't create an actual town but they did create a website for the town of Lucky MN where those who want to play the state lottery can do so with ease.

How It All Began.

It all began over a friendly game of horseshoes between Rip $cratchmore and Lady Luck during a thunderstorm.

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No sooner had Rip made his first toss than a bolt of lightning shot down from the sky.

And then something rather surprising happened... instead of striking the shoe, the bolt met with a four-leaf clover. And, ‘poof’ Lucky, Minnesota was born!

It was in that instant that Lady Luck and Rip $cratchmore knew this chance encounter meant only one thing — even more luck in the future. So they promptly wed, declared themselves Mayor and Mayoress, and proceeded to invite all of their friends to come live with them. You can invite all your friends too!

Now, it seems everyone wants to become a resident of Lucky, MN. Honestly, who wouldn’t?

Lucky, MN is a place where lottery players can feel right at home but you won’t find Lucky, MN on any map because it is located in our imaginations.

Unicorns may or may not be seen in Minnesota, but the winners, promotions, lottery games, and information about lottery proceeds and retailers that you’ll find in Lucky, MN are all real.

Visit Lucky Minnesota (http://www.luckymn.com/)

SOURCE: Minnesota State Lottery.


Veikkaus' Headquarters Celebrates 30 Years in the City of Vantaa

VEIKKAUS, Finland (May 19, 2006) -- This year, thirty years have passed since Veikkaus' headquarters moved from the city centre of Helsinki to Vantaa.

When Veikkaus' business operations started to increase following the launch of Lotto in 1971, the company's old premises in Helsinki soon grew too small. The State granted Veikkaus permission to build a new office in November 1971.

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The decision to move to Vantaa was based on the good site, but also on the government's decentralization policy. It had been suggested that Veikkaus should move to the City of Kuopio in eastern Finland, and Vantaa in the capital region was considered a compromise.

The topping out ceremony of the headquarters was held in 1975, but the company was only able to move to the premises a year later on 24 May 1976. The office was designed by architect Olli Parviainen.

As the headquarters moved to Vantaa, a number of Veikkaus employees decided to do so too. This involved a large-scale housing policy decision, since Veikkaus contributed to the building of 100 new one-family and row houses in the district of Varisto near the headquarters. Moreover, Veikkaus guaranteed the mortgages of over 20 of its employees.

SOURCE: Veikkaus' eNews distributed by Veikkaus Communications.


G2S Protocol to Take Center Stage at GSA and HTNG Partner for Gaming Technology Summit

LAS VEGAS, Nevada, USA (May 22, 2006) – Two panels at this week’s Gaming Technology Summit will put the Gaming Standards Association’s (GSA) landmark Game-to-System (G2S) protocol center stage of the summit. The panels, featuring GSA and Hotel Technology Next Generation (HTNG) will highlight the significance and benefits of the G2S protocol.

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At last year’s Gaming Technology Summit, GSA and HTNG established a working relationship. This year, in addition to the two panels, the groups will be sharing an informational booth in the Networking and Reception area of the summit.

GSA Chairman Lyle Bell said, “Over the past year, we have enjoyed a very successful relationship with HTNG. We share many common goals, and we have been working together to bring about a positive end result. As GSA moves forward on its Game-to-System (G2S) protocol, we expect the relationship between our two groups to deepen even further, creating standard solutions for the gaming and hospitality industries.

The first panel, “Gaming Standards Update – The Power of One Solution” takes place May 24 at 4:00 p.m. In this session, GSA President Peter DeRaedt will moderate discussion of the G2S protocol’s rapid development, current status and solution capabilities.

The second panel, “The CIO Coalition and HTNG: All Systems Go,” takes place on May 25 at 10:30 a.m.

About the Gaming Standards Association (GSA):
The Gaming Standards Association (GSA) is an international trade association representing gaming manufacturers, suppliers, operators and regulators. We facilitate the identification, definition, development, promotion, and implementation of open standards to enable innovation, education, and communication for the benefit of the entire industry. Since its incorporation on May 6, 1998, GSA has members representing a wide cross section of the global gaming industry.

For more information, visit www.gamingstandards.com

SOURCE: Gaming Standards Association edited media release.
CONTACT: Paul Speirs, Steinbeck Communications. P: 702-413-4278, F: 702-233-3492, E: paulspeirs@cox.net


The ordinary General Meeting of SAZKA, a.s. Approved the Company’s Record Economic and Financial Results for 2005

PRAGUE, Czech Republic (May 24, 2006) -- The ordinary General Meeting of SAZKA, a.s., held today at the company’s registered office, discussed and approved the company’s record profit, financial and operating results for 2005.

In 2005 SAZKA, a.s.‘s total revenues were CZK 9.340 billion, of which proceeds from betting and lottery activities amounted to CZK 7.253 billion. Total revenues from betting and lottery activities grew by more than 10 % on a year-on-year basis. In 2005 the profit after tax grew to CZK 1.555 billion, which represented a year-on-year increase of 17.6 %. Disbursements of profit for public beneficial purposes reached almost CZK 1.290 billion in 2005, which was a year-on-year increase of 16.4 %.

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The economic result before tax, economic result after tax and disbursements towards public beneficial purposes are the highest they have been in SAZKA, a.s.‘s almost fifty years‘ history.

These results were generated by SAZKA, a.s. even despite the negative impacts of the amendment to the Value Added Tax Act, which came into effect on 1 January 2005 and which resulted in the company’s economic result after tax decreasing by CZK 219 million. Had this amendment to the Value Added Tax Act not come into effect the company’s economic result for 2005 would have reached CZK 1.774 billion, representing a year-on-year increase of 34.2 %. 

SAZKA, a.s.‘s economic result for 2005 was mainly the result of higher proceeds from number lotteries, the higher profitability of odds bets and proceeds from non-lottery activities, which include recharging mobile phone credit, ticket sales, leasing of buildings and financial operations. In 2005 the share of non-lottery activities on the company’s profit was 9.6 %.

In 2005 SAZKA, a.s. prepared the successfully conversion of the central system for lottery and non-lottery activities, continued in the process of the gradual exchange of terminals and in the expansion of the central lottery system with the addition of StarPort VLTs. In accordance with the agreed payment calendar SAZKA, a.s. paid out further instalments in 2005 towards the bond issue of May 2004, the purpose of which was to finance the construction of the multi-purpose SAZKA ARENA. As of 1 January 2005 SAZKA, a.s. commenced using IFRS International Accounting Standards to prepare its financial statements.  

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SAZKA, a.s. continued in its growth trajectory in the first quarter of 2006, when the company generated an economic result after tax of CZK 583.2 million, which represents a year-on-year growth of more than CZK 152 million, i.e. an increase of 34.5 %.

The shareholders of SAZKA, a.s., which is the biggest non-governmental provider of funding for  public beneficial purposes in the Czech Republic, are exclusively civic association operating in the area of sports and physical education. In the period from 1995 to 2005 SAZKA, a.s.‘s economic result after tax grew by 139.2 %, with profit from betting and lottery activities growing by 118.8 %. The overall economic result generated by SAZKA, a.s. from 1995 to 2005 was almost CZK 11.8 billion, with SAZKA, a.s. contributing over CZK 10 billion towards public beneficial purposes, mainly for sport and physical education, during this same period.

SOURCE: SAZKA, a.s.
CONTACT: PhDr. Zdeněk Zikmund, press spokesperson.


Celebrate Powerball's 10th Birthday with Australia's Biggest Morning Tea Cake!

ADELAIDE, South Australia (May 25, 2006) -- Rundle Mall shoppers can enjoy a slice of Powerball's 10th Birthday today,with a giant birthday cake to be served under the Gawler Place Canopy in Rundle Mall.

At 11am, Minister for Administrative Services & Government Enterprises, the Hon Michael Wright MP will officially launch the celebrations, which will be followed by the service of more than 4,000 slices of cake by a team of Powerball butlers.  

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To support Australia's Biggest Morning Tea, Powerball's 190kg cake will not only celebrate a milestone for Australia's biggest jackpotting game, but will also raise some much-needed funds for The Cancer Council South Australia.

Cake-eaters are encouraged to make a donation for their slice of today's Powerball fun in an effort to beat the $7.2 million national fundraising effort of last year's Australia's Biggest Morning Tea. 

Since South Australia's very first Powerball draw on Thursday, 23 May 1996, twenty local players have experienced the thrill of winning a Division One Powerball prize, sharing in more than $141 million.  In total, $275 million in Powerball prize money has been sprinkled across South Australia in the last ten years.

Powerball profits have also greatly benefited the broad South Australian community, with $103 million being contributed to the State's Hospitals Fund in the past decade.

The icing on the cake in today's Powerball celebrations is the special offer of ten free games with every 25-game Maxi-Pick purchase into tonight's $6 million Powerball draw.

SOURCE: South Australian Lotteries.
CONTACT: Bernadette Tieste, Manager – Corporate Communications on 0401 125 223.

GTECH a leading supplier of systems and services to the lottery industry.

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