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La Flers WLA 2007





Vol. 41 No. 7
Monday November 12, 2007


Schafer Systems Inc.
Wincor Nixdorf

  • NZ Lotteries Marks 20th Birthday With Record Performance. Full Story
  • INTRALOT IR Team Wins Prestigious Award. Full Story
  • Scientific Games Awarded Contract with CIE in Mexico. Full Story
  • WLA Member To Use Boss - Svenska Spel Online Services. Full Story
  • California Lottery Announces Seventh Straight Year of $1 Billion in Supplemental Funding to Education. Full Story
  • Interim Lottery Director Named. Full Story
  • Unique Partnership Makes Scratchers® Mad Money! Full Story
  • German Lottery Company Announce Quarter Results. Full Story
  • Pollard Banknote Granted Extension to the Massachusetts Lottery Contract. Full Story
  • German Lottery Appoints New Head of Marketing. Full Story
  • MDI/Scientific Games Add 21 Brands from The Hershey Company to Properties Portfolio. Full Story
  • Lottomatica Announce 2007 Results For Period Ended September 30, 2007. Also Announces Leadership Changes. Full Story

Smartplay International Inc.

KEBA AG




NZ Lotteries Marks 20th Birthday With Record Performance

NEW ZEALAND (November 5, 2007) -- Twenty years since its inception, NZ Lotteries has marked the milestone by recording its best-ever sales result of $744.8 million, coupled with a record transfer to the Lottery Grants Board of $147.5 million, NZ Lotteries’ Chief Executive Todd McLeay, said today.

NZ Lotteries has had twenty memorable years, and what better way to cap it all off, than with a record-breaking year for sales and transferring more money than ever before to the Lottery Grants Board,” said Mr. McLeay.

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Since NZ Lotteries began, $5.6 billion has been won in prizes, and more than $2.3 billion has benefited communities around New Zealand through lottery grants.”

Mr. McLeay said that NZ Lotteries’ continued strong business performance can be attributed to a number of strategy-driven changes over recent years that came to fruition during 2006/2007.

Our midweek jackpotting game Big Wednesday, was introduced in October 2005.  2006/2007 saw the first full year of sales for the game, and it has played a key role in lifting sales.

We have also focussed on expanding and refurbishing our retail network.  This has resulted in more convenience for customers, particularly in areas previously unserviced by a retail outlet, and introduced a more economical store format for our outlet operators.

At the same time, we have invested significantly in major technological upgrades to NZ Lotteries’ gaming system, corporate system, terminals and networks.  These have ensured greater business efficiency and provide us with a strong platform for future business developments,” Mr. McLeay said.

Over the year, 140 players won Lotto First Division, fourteen of whom became instant millionaires, and a further two lucky players became instant millionaires when they spun and won $1 million on Lotto’s Winning Wheel.  There was also one Lotto Strike millionaire, and one lucky player from Devonport in Auckland who won two $500,000 prizes in the same Keno draw, making him the first-ever Keno millionaire.

In NZ Lotteries’ big jackpot games, Lotto Powerball First Division was won by thirteen people, including eleven who won multi-million dollar prizes.  And eleven players won Big Wednesday First Division, with nine multi-millionaires among them.

SOURCE: NZ Lotteries.

 

INTRALOT IR Team Wins Prestigious Award

ATHENS, Greece (November 5th, 2007) -- INTRALOT has won the “Highly Commended – Best Investor Relations by a Greek company” award by IR Magazine’s 2007 Annual Awards for Εxcellence in Investor Relations in Continental Europe. The awards, judged by leading buy- and sell-side analysts and portfolio managers across the industry, recognize the strength of performance of the companies which took part and pay tribute to the finalists’ on going investor relationship management strategy.

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INTRALOT during the past years has experienced the largest organic growth in the sector, with a pipeline of very significant projects won recently and other soon to be expected.

Its investor relations team aims to achieve the highest possible credibility, trustworthiness and increased awareness within the investment community. Moreover, INTRALOT’s investor relations team is in a continuous effort to best communicate the Company’s strategy, unique offerings and characteristics that established it as a global leader and the potential growth from the opportunities within the sector.

Elias Athanasiou, Director of Financial Analysis & Investor Relations said: "We feel very honoured to receive this recognition from such a prestigious publication like the IR magazine and it comes as an acknowledgment of the strong efforts we have put in our work as an Investor Relations Department at INTRALOT."

About INTRALOT (www.intralot.com)

INTRALOT, a public listed company, is the leading supplier of integrated gaming and transaction processing systems, innovative game content and sports betting management, to state-licensed gaming organizations worldwide. It’s broad portfolio of products & services, its know-how of Lottery, Betting & Video Lottery operations and its leading-edge technology, give INTRALOT a competitive advantage which contributes directly to customers’ efficiency, profitability and growth. With presence in over than 40 countries, with more than 3,800 people and revenues of €791,4 m. for 2006, INTRALOT has established its presence in all 5 continents.

For more information please CONTACT: Ms Persa Kartsoli, Head Of Corporate Affairs, Phone: +30-210 6156000, Fax: +30-210 6106800, email: kartsoli@intralot.com.

 

Scientific Games Awarded Contract with CIE in Mexico

5-Year Deal to Supply 1,500 Global Draw Terminals

NEW YORK, USA (November 2, 2007) -- Scientific Games (Nasdaq: SGMS) announced that its wholly owned subsidiary The Global Draw Ltd. was awarded a five-year contract to supply up to 1,500 of its multi-game server based gaming terminals to Corporacion Interamericana de Entretenimiento ("CIE") [BMV: CIE B] in Mexico. The contract is expected to generate annual revenues of approximately $8 million, and was awarded after the successful completion of a pilot program.

CIE currently has licenses to operate up to 65 gaming locations, including the existing 45 Sports Books and numbers games outlets, branded sports betting and electronic number based game activities, which include gaming machines of which they have an installed base of approximately 7,000.

"The Global Draw terminals have performed very well to date and we look forward to expanding their installed base," said Gabriel Lecumberri, General Manager of CIE Las Americas. "We have seen Global Draw set the standard in the U.K. with its dual purpose, dual screen terminals. Rather than recycling games developed for the US market, they designed new games tailored to the Mexican market that provide a unique approach to attracting a higher value player."

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"CIE is one of the leading gaming operators in Mexico, and has been a valued customer of our Racing business since 1997," said Lorne Weil, Chairman and CEO of Scientific Games. "We believe our innovative game design, quality of service and proven expertise will contribute to the continued success of CIE and we are looking forward to growing with them in the coming years. This is Global Draw's first major contract outside of the UK, and we believe that our existing customer base will continue to provide opportunities for the expansion of our Diversified Gaming business."

About Scientific Games

Scientific Games Corporation is the leading integrated supplier of instant tickets, systems and services to lotteries worldwide, a leading supplier of fixed odds betting terminals and systems, Amusement and Skill with Prize betting terminals, 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 www.scientificgames.com.

About CIE

Created in 1990, Corporacion Interamericana de Entretenimiento, S.A.B. de C.V. (CIE), is today the leading out-of-home entertainment company in Latin America. Through a unique, vertically integrated structure, the Group participates in businesses that provide recreational and entertainment services and products. These services and products primarily include: the operation of entertainment venues, the Las Americas Racetrack and amusement parks, the promotion and production of a wide variety of events, the promotion of trade fairs and expositions, the sale of sponsorships, advertising, and food and beverages for those events and public entertainment venues. CIE is a public company whose shares have been listed on the Mexican Stock Exchange since 1995 under the symbol "CIE B."

SOURCE: Scientific Games Corporation. CONTACT: Investor Relations, Scientific Games, +1-212-754-2233.

 

Svenska Spel and Boss Media Cooperates with a State-Controlled Gaming Company on Poker

STOCKHOLM, Sweden (November 2, 2007) -- A state-controlled gaming company – who is a member of the World Lottery Assocation (“WLA”) - has obtained permission from its government to arrange Internet poker in cooperation with Svenska Spel and Boss Media (STO:BOSS). The WLA Company will use Svenska Spel’s and Boss Media’s solutions for security and supervision.

This is a great acknowledgement of our Internet poker”, says Svenska Spel CEO Jesper Kärrbrink.

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The government of the WLA Company follows the Swedish example and allows the state-controlled gaming company to arrange Internet poker for its local citizens. Boss Media will deliver and operate the technical gaming platform and Svenska Spel’s solutions for responsible gaming, security and supervision shall be integrated into the gaming platform that will be delivered by Boss Media. The delivery is expected to be made early in 2008.

It is satisfying that we will deliver our products to yet another WLA-member. We are particularly content over the cooperation with Svenska Spel who has helped us develop the tools for responsible gaming which will be a fundamental part in the gaming companies’ interactive gaming offers in the future,” says Markus Holm, executive vice president and head of business development at Boss Media.

The concession of the current government to its controlled gaming company effectively states that the new net poker site must be arranged in cooperation with state licensed members only. Thus Svenska Spel serves an important role in regard of security and supervision. Svenska Spel and Boss Media will be remunerated with a part of the rake which the players will pay to the WLA Company.

Svenska Spel’s Internet poker and its solutions for responsible gaming have gained widespread attention throughout the world. We have shown that it is possible to combine an attractive net poker highly appreciated by the players paired with extensive demands on responsibility. Our poker site quickly became the undoubtedly biggest on the Swedish market, yet the number of problem players on our site is half of that of other poker sites,” says Jesper Kärrbrink, CEO of Svenska Spel.

The cooperation entails that the poker players of the WLA Company, equal to the Swedish players, before they can start playing, must set their own limits. Furthermore, the WLA Company will have the right to use Svenska Spel’s responsible gaming tool Play Scan, which predicts and warns a player who is starting to develop an un-sound gaming behaviour.

We are very pleased to be able to offer the players in our country the possibility to play poker on the Internet in a secure and orderly manner. We hope that the circumstances will develop in such a way that our players and Swedish players will soon be able to play against each other in the same poker network,” says a representative of the WLA Company.

About Boss Media AB

Boss Media AB (publ) is one of the world’s leading independent and total suppliers of systems for digitally distributed gaming entertainment. Boss Media develops gaming system solutions for such distribution channels as personal computers/Internet, interactive gaming terminals and digital- TV. Licensees are offered a customized gaming system, an integrated payment system and operator related services. The Boss Media-share is listed on the OMX Nordic Exchange list (Small Cap/IT). More information about Boss Media is available at www.bossmedia.com

CONTACT: Boss Media AB (publ), Michael Hallén, President and CEO, +46 (0)470 70 30 000.

 

California Lottery Announces Seventh Straight Year of $1 Billion in Supplemental Funding to Education

SACRAMENTO, California, USA (November 1, 2007) -- Final sales figures for the 2006-07 fiscal year show the California Lottery reached $3.3 billion in sales, the third highest year ever!  The California Lottery transferred more than $1.2 billion in supplemental funding to public education, making this the seventh consecutive year the Lottery will contribute more than $1 billion.

California Lottery employees are excited about creating new winners, engaging with retailers and raising funds for our beneficiary,” said Lottery Director Joan Borucki.  “This past fiscal year, we introduced 40 new Scratchers® games, created 23 new millionaires and raised over a billion dollars for education.”

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The highly popular Scratchers® games brought in more than $1.8 billion in sales.  Draw games such as SuperLOTTO Plus, MEGA Millions, and other daily games posted sales of $1.49 billion.  Lottery officials attribute this year’s sales figures to innovative products such as the Million Dollar Raffle and holiday gift packs marketed throughout the state.  Both of these products were so successful, they will be reintroduced in fall 2007.

It was a winning year at the California Lottery as over $1.7 billion in prize money was awarded!  At a frequency of every other day, a California Lottery player won a prize of $100,000 or more.  Finally, the California Lottery proudly created 23 millionaires in the 2006-07 fiscal year.

California Lottery products are sold through a retail network of over 19,000 retailers throughout the state.  For their efforts, these California Lottery retailers earned sales commission and bonuses totaling $233 million.

Over 95 cents of every Lottery dollar is returned to the community in the form of contributions to education, prizes and retail commissions.  The California Lottery contributes at least 34 cents of every dollar that players spend on Lottery products to public education and returns more than 50 percent of sales to players in the form of prizes. Since its inception in 1985, the Lottery has contributed more than $19.6 billion to California schools out of total sales of more than $53.25 billion. Retailers win too, earning $3.4 billion in compensation since 1985.

SOURCE: California Lottery.

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Long-Time Iowa Lottery Staffer Serves as Acting CEO Following Retirement of Dr. Ed Stanek

DES MOINES, Iowa (November 1, 2007) -- Following Wednesday's retirement of Iowa Lottery CEO Dr. Ed Stanek, a long-time lottery staffer will serve as acting chief executive officer until a permanent successor is named.

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Iowa law provides that in the absence of the CEO, the executive vice president of the lottery will act as its CEO. Ken Brickman of Des Moines has been the lottery's executive vice president and chief operating officer since May 1995. Brickman, 67, had also previously held comparable positions with the Illinois Lottery and Louisiana Lottery Corp. He received a law degree in 1967 from the University of Missouri and a bachelor's degree in Business Administration and Economics from Culver-Stockton College.

The Lottery CEO is appointed by the governor and must be confirmed by the Iowa Senate. Stanek had been the lottery's CEO since its inception in 1985.

I view my role as that of caretaker,” Brickman said Thursday. “I will not tender my name as a candidate for the CEO position. Whomever the governor appoints to fill the vacancy pending confirmation will need time to settle in to the position and begin to develop policy for the future direction the lottery will take.

We will miss Ed but we will not miss a beat in continuing with our mission. We are all members of a winning team. The proof is in the proceeds we have transferred over the years and our excellent reputation with the citizens of Iowa.”

SOURCE: Iowa Lottery.

 

The California Lottery’s First Overture, Unique Partnership Makes Scratchers® Mad Money!

BEVERLY HILLS, California, USA (November 5, 2007) -- Overture Films and the California Lottery jointly announced today they will partner to create a movie-themed Scratchers® game featuring Overture’s first release Mad Money. Directed by Oscar® winner Callie Khouri, Mad Money stars Diane Keaton, Queen Latifah, and Katie Holmes as three female employees of the Federal Reserve who plot to steal money that is about to be destroyed. These $1 Mad Money Scratchers® will be available at the over 19,000 Lottery retail locations throughout the state starting in late November. Mad Money hits theaters nationwide January 18, 2008.

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Mad Money Scratchers® will not only offer players the opportunity to win cash prizes ranging from $10 to $1,000, but will also include unique second chance prizes as well.

Second chance draw prizes include: a trip for two to the Los Angeles premiere of Mad Money, a trip for two to a future Overture Films movie premiere, a set visit for a future Overture Films production, a walk-on role for an upcoming movie, Mad Money DVDs, autographed Mad Money movie posters, and a Starz subscription. Odds of winning any prize are 1 in 5.45 and odds of winning a cash prize are 1 in 11.96.

 “When people think of California, they think of Hollywood, which is why the California Lottery is thrilled to enter into a new partnership with friends in the movie industry, Overture Films,” said Lottery Director Joan Borucki.Mad Money is a great tie-in for our products!

Overture Films most recently acquired all North American rights to Tom McCarthy’s The Visitor at the 2007 Toronto Film Festival. Overture is currently in production on Traitor, a politically charged espionage thriller starring Don Cheadle and Guy Pearce. The company is also in production on Last Chance Harvey, starring Oscar® winners Dustin Hoffman and Emma Thompson. Overture is domestically distributing the action-thriller Righteous Kill, starring Oscar® winners Robert DeNiro and Al Pacino, which is also currently shooting. Earlier this year, Overture Films acquired all U.S. rights to Sleepwalking, an emotional drama about a young girl’s search for parental love, starring Oscar® winner Charlize Theron. Overture is also in active development on 105 Degrees and Rising, an ensemble piece set against the backdrop of the Fall of Saigon, to be directed by Jon Amiel.

ABOUT OVERTURE FILMS

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Launched in the fall of 2006, Overture Films (overturefilms.net) develops, produces, acquires, and distributes motion pictures worldwide.

The studio forms collaborative relationships with filmmakers and empowers them to produce quality films that take creative risks and break new ground.

Its affiliated companies, Starz Home Entertainment and Starz Entertainment, make the films available domestically to viewers via home video, premium television, Internet and other outlets.

Overture Films is an operating unit of Starz, LLC, which in turn is a wholly owned subsidiary of Liberty Media Corporation that is attributed to Liberty Capital Corp.

ABOUT THE CALIFORNIA LOTTERY

Over 95 cents of every Lottery dollar is returned to the community in the form of contributions to education, prizes and retail commissions. The California Lottery contributes at least 34 cents of every dollar that players spend on Lottery products to public education and returns more than 50 percent of sales to players in the form of prizes. Since its inception in 1985, the Lottery has contributed more than $19.6 billion to California schools out of total sales of more than $53.25 billion. Retailers win too, earning $3.4 billion in compensation since 1985.

CONTACTS: Overture Films, Adam Keen, 424-204-4144 or California Lottery, Olga Gallardo or Cathy Johnston, 916-324-9639.

 

 

German Lottery Company Tipp24 AG Announce Quarter Results - Record Result in Third Quarter 2007

Tipp24 Expands Foreign Business – Launch in UK

HAMBURG, Deutschland (November 2007) -- Tipp24 is to enter the UK market as a supplier of European lotteries under the web address www.mylotto24.co.uk on 6 November 2007. With a unique business model, the company and its wholly-owned subsidiary MyLotto24 Ltd. will offer the possibility of placing bets on the outcome of European lotteries. MyLotto24 Ltd. will operate the business on the basis of a UK licence acquired by the company in October. For customers in the UK this means the chance of far greater winnings than the National Lottery offers.

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MyLotto24 offers customers in the UK unique variants of core products, such as the possibility of betting on the jackpot of the Italian SuperEnalotto and the European EuroMillones. Even bets on the German Glücksspirale are offered – a new product in the UK. It is not planned to enter the classic sports betting segment.

After Germany, Spain and Italy, the new subsidiary means that Tipp24 is now represented in a further major European gaming market and is thus increasing its independence from the German market. A total of EUR 7.1 billion was spent on lotteries in the UK in 2005. 70 percent of all citizens gamble or bet on a regular basis.

Tipp24 has also begun to set up an international data centre in London. Compared with the previous locations in Hamburg, the UK facility offers far better connections to the major international internet nodes. All Tipp24 Group websites are to be operated from here in the near future.

9-month report

Despite the ongoing regulatory uncertainty on the German gaming market, Tipp24 AG continued its successful course once again in the third quarter of 2007.

In the first nine months of the current fiscal year, revenues improved by 17.0 percent to EUR 28.5 (24.3) million. Over the same period, billings – mainly remitted stakes – grew by 17.1 percent to EUR 218.2 (186.4) million.

Earnings before interest and taxes (EBIT) rose by 2.4 percent to EUR 5.2 (5.1) million in the first nine months. In the third quarter of the current fiscal year Tipp24 posted a record EBIT result of EUR 2.9 million – well above expectations.

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Despite the ongoing discussions about the German State Treaty on Gaming, we succeeded in posting record earnings in the past quarter. Not even the additional costs incurred for the foundation of our new wholly-owned subsidiary MyLotto24 Ltd. in Great Britain could disturb this picture,” says Jens Schumann, founder and Executive Board member of Tipp24 AG.

The number of registered customers increased by 409 thousand to 1,990 (1,581) thousand, compared with the same quarter last year. Of this total, 220 thousand registered customers were gained in the first nine months of 2007 (same period last year: 259 thousand).

Outlook

Tipp24 AG confirms its economic outlook for the fiscal year 2007: the company plans to gain a total of 300 thousand customers and stabilize its market share of the dynamic online lottery market. Tipp24 continues to expect growth of around 20 percent in billings and revenues and a slight year-on-year increase in EBIT.

 

Key figures for the third quarter 2007

Q.III

 

Q.III '07

Q.III '06

% Change

Billings

Mio. €

78.6

69

13.90%

- Germany

Mio. €

+ 73.6

+ 65.2

+ 12.8%

- Abroad

Mio. €

+ 5.0

+ 3.8

+ 32.8%

Revenue

Mio. €

+ 10.5

+ 9.0

+ 16.9%

- Germany

Mio. €

+ 9.3

+ 8.0

+ 16.5%

- Abroad

Mio. €

+ 1.2

+ 1.0

+ 19.7%

Operating expenses

Mio. €

+ 7.7

+ 6.9

+ 11.0%

EBITDA

Mio. €

+ 3.1

+ 2.3

+ 35.6%

EBIT

Mio. €

+ 2.9

+ 2.1

+ 36.6%

EBT

Mio. €

+ 3.5

+ 2.5

+ 37.9%

Net Profit

Mio. €

+ 1.9

+ 1.5

+ 26.8%

Q.I-III

 

Q.I-III '07

Q.III '06

% Change

Billings

Mio. €

+ 218.2

+ 186.4

+ 17.1%

- Germany

Mio. €

+ 203.7

+ 175.0

+ 16.4%

- Abroad

Mio. €

+ 14.5

+ 11.4

+ 27.0%

Revenue

Mio. €

+ 28.5

+ 24.3

+ 17.0%

- Germany

Mio. €

+ 25.0

+ 21.3

+ 17.2%

- Abroad

Mio. €

+ 3.5

+ 3.0

+ 15.6%

Operating expenses

Mio. €

- 22.7

- 18.7

+ 21.1%

EBITDA

Mio. €

+ 5.8

+ 5.6

+ 3.4%

EBIT

Mio. €

+ 5.2

+ 5.1

+ 2.4%

EBT

Mio. €

+ 6.9

+ 5.7

+ 20.5%

Net Profit

Mio. €

+ 3.9

+ 5.7

- 31.8%

 

Rounding differences due to presentation of figures in Euro million)

 

About Tipp24 AG (www.tipp24.de)

Tipp24 was established in 1999 and is now the market leader for lottery products in the Internet on the basis of billings. The company has succeeded in achieving impressive growth rates right from the start. Almost all state lottery products are supplied. It only takes a few mouse clicks to buy a lottery ticket – round the clock, quickly and reliably. The ticket receipt is kept safely, winners are notified about their prizes automatically by text message and e-mail and prizes are credited automatically. Subsidiaries of Tipp24 (www.tipp24.de) are Ventura24 in Spain (www.ventura24.es), Puntogioco24 (www.puntogioco24.it) in Italy and MyLotto24 (www.mylotto24.co.uk) in the UK.

CONTACT: Tipp24 AG, Andrea Fratini, Head of Media and Public Relations , Phone: +49 40 32 55 33-660, Fax: +49 40 32 55 33-5600, E-Mail: presse@tipp24.de

 

Pollard Banknote Granted Extension to the Massachusetts Lottery Contract

YPSILANTI, MI (November 5, 2007) -- Pollard Banknote was recently awarded a one-year extension to its contract with the Massachusetts Lottery to supply instant tickets and related services. Based on previous billings and current trends, this supplementary term is expected to be worth approximately $2.5 million (US). This latest agreement extends the company’s partnership with the Lottery until August 2008, with an additional one-year extension still possible.

It’s a point of real pride for our company to be given the opportunity to continue building on the relationship we’ve established with the Massachusetts Lottery over the past few years,” said Gordon Pollard, Co-Chief Executive Officer, Pollard Banknote. “Their premiere standing and successful business model make it all the more significant that we’ve become so favorably associated with this pioneering lottery.”

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Pollard Banknote is expected to print a number of games for the Massachusetts Lottery as part of the current contract extension. Most recently, this relationship was expanded with the introduction of extended play games featuring the company’s patented translucent marking system. These games form an integral part of the Lottery’s strategic plan to offer products capable of satisfying the demands of a broader player base.

Founded in 1971, the Massachusetts Lottery distributes proceeds to local governments according to an aid formula established by the state’s legislative body-funds that are subsequently dispersed to whatever programs and services these municipalities judge most in need. Last year, the Lottery’s contribution totaled $761 million in direct assistance of this nature.

About Pollard Banknote Limited Partnership

Pollard Banknote Limited Partnership (“Pollard Banknote”) is one of the world’s leading full-service lottery vendors and is a major supplier to North America’s charitable gaming industry. The firm manufactures instant tickets and provides related programming, design, and marketing support. As well, Pollard Banknote manufactures ticket vending machines, pull tab tickets and bingo paper, and supplies lottery management services (including warehousing and distribution). Established in 1907, the firm is owned by the Pollard family and the Pollard Banknote Income Fund and currently serves more than 45 lotteries worldwide, including some of the largest and most respected lotteries in the United States, Canada, Europe, Asia, and Central and South America.

About Pollard Banknote Income Fund

Pollard Banknote Income Fund (TSX: PBL.UN) is an unincorporated, open-end trust which owns 26.7% of Pollard Holdings Limited Partnership, which in turn owns Pollard Banknote Limited Partnership.

For further information: Gordon Pollard (gpollard@pbl.ca) or John Pollard (jpollard@pbl.ca), Co-Chief Executive Officers, Phone: (204) 474-2323, Web Site: www.pollardbanknote.com

 

Petra von Strombeck New Head of Marketing at Tipp24 AG

HAMBURG, Germany (November 7, 2007) -- Petra von Strombeck (38) has been appointed head of marketing at Tipp24 AG with effect from 1 November. Von Strombeck is responsible for both the Marketing and Product Management divisions. With the creation of this new position, the Hamburg-based company aims to strengthen its online expertise in marketing.

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In her previous position, Petra von Strombeck headed a French subsidiary of Tchibo from 2004. From 1999 to 2004 she was responsible for Tchibo’s online sales as head of e-commerce at Tchibo direct. Prior to this, she was responsible for advertising at Premiere Medien. From 1993 to 1996 she worked for Danone as a product manager. Von Strombeck graduated in international business administration from the EAP and studied in Paris, Oxford and Berlin.

About Tipp24 AG (www.tipp24.de)

Tipp24 was established in 1999 and is now the market leader for lottery products in the Internet on the basis of billings. The company has succeeded in achieving impressive growth rates right from the start. Almost all state lottery products are supplied. It only takes a few mouse clicks to buy a lottery ticket – round the clock, quickly and reliably. The ticket receipt is kept safely, winners are notified about their prizes automatically by text message and e-mail and prizes are credited automatically. Subsidiaries of Tipp24 (www.tipp24.de) are Ventura24 in Spain (www.ventura24.es), Puntogioco24 (www.puntogioco24.it) in Italy and MyLotto24 (www.mylotto24.co.uk) in the UK.

CONTACT: Tipp24 AG, Andrea Fratini

Head of Media and Public Relations, Phone: +49 40 32 55 33-660, Fax: +49 40 32 55 33-5600.

 

MDI/Scientific Games Add 21 Brands from The Hershey Company to Properties Portfolio

Lotteries Expect Sweet Success with Hershey®’s

ALPHARETTA, Georgia, USA (November 7, 2007) -- Lotteries will soon experience sweet returns on their investment now that MDI, a wholly-owned subsidiary of Scientific Games Corporation (NASDAQ: SGMS), has added 21 of America’s favorite brands from The Hershey Company’s line of products to its line of lottery products. The new games will draw on the candies’ vivid colors, packaging, imagery and even scents.

 “There are so many creative opportunities to make this fun for lottery players,” said Steve Saferin, MDI president. “When you combine high-tech printing techniques such as our scratch-and-sniff inks with the nostalgia people attach to long-time candy favorites, lotteries can expect big results.”

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MDI/Scientific Games plan to have scratch tickets for these exciting brands in stores by January 1, 2008: Hershey’s, Hershey’s Kisses, Hershey’s Kissables, Reese’s, Reese’s Pieces, Twizzlers, Jolly Rancher, Mounds, Almond Joy, Hershey’s S’Mores, Ice Breakers, York, Whoppers, Milk Duds, Heath, Zero, Bubble Yum, Take 5, PayDay, Good & Plenty, and Good & Fruity.

MDI’s alliance with The Hershey Company is a multi-year, exclusive licensing agreement that gives lotteries special rights, through MDI/Scientific Games, to use official product logos, artwork, trademarks, etc., to more effectively market their products. The games will be rolled out first in the U.S. with plans to enter the Canadian lottery market later.

The Hershey Company is one of the oldest confectionery companies in the U.S., and an American icon,” said Jeff Lotman, CEO of Global Icons – licensing agent for The Hershey Company. “Building on the brand recognition Hershey’s has established over the past century is a genius business move for lotteries.”

About Scientific Games: (www.scientificgames.com)

Scientific Games Corporation is the leading integrated supplier of instant tickets, systems and services to lotteries worldwide, a leading supplier of fixed odds betting terminals and systems, Amusement and Skill with Prize betting terminals, 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 www.scientificgames.com.

About Global Icons: (www.globalicons.com)

Global Icons is the premier licensing and brand merchandising agency specializing in the development and extension of corporate brands and trademarks. On behalf of its ever-expanding roster of clients, the company's goal is to increase brand awareness and revenue through the establishment of new products, distribution channels and revenue streams. Select clients include American Honda Motor, Build-A-Bear Workshop, Chevron, Chuck E Cheese's, Cold Stone Creamery, Cutex, Encyclopaedia Britannica, Gulf, The Hershey Company, Hollywood, Humvee, Igloo, Mrs. Fields, Tonino Lamborghini, Make-A-Wish, Miso Pretty, Spic and Span, Texaco, and UPS, among others.

SOURCE: MDI. CONTACT: Max Montgomery, 770-664-3807.

 

Lottomatica Announces 2007 Results For The Nine-Month Period Ended September 30, 2007

Revenues of €1.22 billion, compared to €566 million from nine months of Lottomatica’s Italian stand-alone operations with only one month of GTECH operations in 2006

EBITDA of €541 million and Operating Income of €324 million for the nine months of 2007 compared to €270 million and  €200 million, respectively, for the nine months of 2006

Net Income of €72 million, compared to €39 million in 2006

Provides Updated Guidance for 2007 and Preliminary Guidance for 2008

Leadership Changes Announced

ROME (ITALY) - PROVIDENCE, RHODE ISLAND (US) (November 08, 2007) – The Board of Directors of Lottomatica S.p.A., chaired by Mr. Lorenzo Pellicioli, approved today the consolidated accounts of Lottomatica Group for the first nine months of 2007, which ended September 30, 2007.

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Lottomatica’s financial performance was good, and the fundamentals of our core business continue to experience positive growth,” said W. Bruce Turner, CEO of Lottomatica Group.  “GTECH has had positive results with the implementation of a program to enhance same store revenues. Our Italian operations experienced continued growth. With a first-to-market rollout of our sports betting brand, we are generating significant player interest that we believe will be sustainable. And, the Italian scratch and win segment continues to perform at record levels.” 

 “Our financial results are positive and in line with our guidance, despite some unfavorable market conditions,” said Stefano Bortoli, CFO of Lottomatica Group. “We experienced overall sustainable high margins, and as we continue to move forward with our disciplined execution of numerous initiatives, we believe we will improve our financial position through cash flow generation.”

Lottomatica Group 2007 First Nine Months Results

Revenues for the first nine months of 2007 totaled €1.22 billion, including approximately €623.0 million from GTECH operations and €598.7 million from Italian operations. For the same period in 2006, total revenues were €566.0 million, including approximately €492.4 million from  Italian operations and €73.6 million from GTECH’s operations.  Overall, revenues grew 115.9% year-over-year, while revenue from Italian operations grew 21.6% year-over-year.

EBITDA was €541.5 million with an EBITDA margin of 44.3%. 

Operating income was €324.2 million for the first nine months of 2007, with a 26.5% margin.

Net income was €72.4 million for the nine months ended September 30, 2007, compared to €38.8 million for the same period last year, up 86.5%.

Net income attributable to equity holders of the parent for the nine months ended September 30, 2007 was €46.9 million, compared to €32.8 million for the same period last year.

GTECH Operating Results and Business Highlights

Revenues for the first nine months of 2007 were €623.0 million, with approximately €554.0 million from the Lottery segment, €47.0 million from Gaming Solutions, and approximately €22.0 million from Commercial Services.

During this period, GTECH continued to focus its efforts on the core lottery business and expanding its Gaming Solutions business.  The Company secured contracts in the United Kingdom and Kansas, and received a contract extension in New York.  Over the life of the U.K. contract, GTECH expects to receive revenues of more than €600 million, with the Kansas contract expected to generate revenues for GTECH of approximately €60 million. The New York extension is expected to generate revenues to GTECH of approximately €147 million.

Additionally, customers in Denmark, Belgium, and Western Canada awarded GTECH product sale agreements for new lottery terminals. 

In the Gaming Solutions vertical, GTECH was chosen to provide a new server-based gaming system and interactive video terminals to Svenska Spel in Sweden.

GTECH’s subsidiary, Spielo, was selected to provide Manitoba Lotteries Corporation with new slot/bingo gaming terminals.  Both contracts combined are expected to generate total revenues to GTECH of approximately €50 million.

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Italian Operating Results and Business Highlights

For the first nine months of 2007, revenues from Italian operations grew approximately 21.6% to €598.7 million, from €492.4 million in the first nine months of 2006.

Lotto and instant ticket wagers grew approximately 38.3% to €10.6 billion in the first nine months of 2007, from €7.7 billion for the same period last year, as strong Instants lottery performance more than offset the slight decrease in Lotto.

Total Lotto wagers reached €4.7 billion, down slightly against €5.0 billion in the first nine months of 2006. Wagers in the first nine months of 2006 included a record late number, Cagliari 34. Core wagers were comparable to the same period last year at €3.9 billion. Lotto revenues were €302.9 million, compared to €323.7 million in the same period last year.

The continued strong performance of instant tickets, resulted in sales of approximately €5.9 billion, compared to sales of approximately €2.7 billion, in the first nine months of 2006, an increase of 123.6% year-over-year.  Approximately 1.7 billion Scratch & Win tickets were sold in the first nine months of 2007, compared to 1.1 billion in the same period last year. The average price point grew from €2.3 to €3.4, driven principally by the introduction of the €10 lottery ticket in January 2007, which generated new sales of €1.8 billion during the nine months ended September 30, 2007. Revenues for the Instant Lottery business totaled €207.9 million compared to €94.4 million during the first nine months of 2006, an increase of 120.3%. 

Sports betting wagers, with over 1,000 locations in operation, were approximately €26.7 million, for the months of August and September. Revenues from sports betting were approximately €5.2 million, equal to gross wagers net of prize payouts.

Revenues from Gaming Solutions were up 163.9% over the same period last year, driven by the increased placement of Amusement with Prizes (AWP) machines, from approximately 10,000 machines installed at the end of 2006, to approximately 21,000 machines installed as of the end of September 2007.

Revenues from Commercial Services were stable compared to the same period last year, despite the negative impact of regulatory changes.

Consolidated Cash Flow and Net Financial Position

At September 30, 2007, Lottomatica Group had a Net Financial Position of €2.31 billion, with Cash and Cash Equivalents of approximately €444.2 million at the end of period. During the nine months ended September 30, 2007, the Group generated €369.3 million of net cash flows from operating activities, compared to €106.2 million in the same period last year. 

Consolidated Shareholders' Equity

Consolidated shareholders' equity totaled €1.77 billion.

Additional Information

Third-Quarter Financial Results

Revenues for the third quarter ended September 30, 2007 totaled €386.2 million, including approximately €195.3 million from GTECH operations and €190.9 million from Italian operations.  Overall, revenues grew 71.3% year-over-year, with one month of contribution from GTECH operations in the third quarter of last year.

EBITDA was €160.8 million with an EBITDA margin of 41.6%. Operating Income was €84.8 million for the quarter, and Net income was €4.3 million for the quarter ended September 30, 2007, compared to Net income of €6.9 million in the third quarter of 2006. 

Revenues for the third quarter of 2007 include €195.3 million from GTECH operations, with approximately €173.9 million from the Lottery segment, €18.0 million from Gaming Solutions, and approximately €3.4 million from Commercial Services.

During the quarter, GTECH secured a 19 month contract extension with the New Jersey Lottery. After the close of the third quarter, GTECH signed a long-term contract in Oregon, valued at €50 million, and also extended its contract with the Illinois Lottery for an additional year through October 16, 2008, with expected revenues to GTECH of approximately €24 million over the one-year extension period.

Revenues from Italian operations grew approximately 25.7% to €190.9 million, from €151.9 million in the third quarter of 2006. Lotto wagers were stable at €1.53 billion while Instant ticket sales were approximately €1.72 billion, compared to sales of approximately €883 million in the third quarter of 2006.

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Leadership Changes

Also at the Board of Directors meeting, it was announced that W. Bruce Turner, Chief Executive Officer of Lottomatica S.p.A. and GTECH Corporation, has tendered his resignation effective from December 31, 2007 at the latest. Citing his intent to pursue an opportunity to start an investment firm, Mr. Turner noted that he has overseen the successful integration of GTECH and Lottomatica and positioned the Company well for future growth.  The Board of Directors accepted Mr. Turner's resignation and thanked him for his service.

Upon Mr. Turner's departure, Lorenzo Pellicioli, Chairman of Lottomatica S.p.A., will take on the additional responsibilities of Chief Executive Officer of Lottomatica Group.  In addition, Jaymin Patel, currently President and Chief Operating Officer of GTECH, will become Chief Executive Officer of GTECH Corporation.

Commenting on the changes, Mr. Pellicioli said, "I am confident in Lottomatica's growth plan and committed to driving its continued success.  I look forward to working with our operational leaders, Marco Sala – Managing Director for the Italian operations -  and Jaymin Patel, to ensure that we are successful in taking advantage of the significant opportunities ahead and deliver en