Scientific Games Awarded South Carolina Contract

NEW YORK – (PRESS RELEASE) -- Scientific Games (Nasdaq: SGMS) has been awarded a contract to supply instant tickets and related services to the South Carolina Education Lottery (SCEL) including marketing, shipping, warehousing, game design, inventory control, distribution and sales staff training. The seven year contract begins October of 2006 and is valued at approximately $50 million.

This is the second award of the SCEL instant ticket contract since its inception five years ago. Scientific Games played a key role in the start-up of the lottery in what was then record time.

"We have worked with the South Carolina Education Lottery from the start and are proud to have helped build one of the strongest lotteries in the United States," said Lorne Weil, Chairman and CEO of Scientific Games. "It is gratifying to see South Carolina students and universities reaping the benefits of the SCEL and Scientific Games partnership."

"We have sustained five successful years of sales growth, thanks in large part to our instant ticket product line, and we expect a continued flow of new games that our players will enjoy and that will make a major contribution to education in South Carolina," said Executive Director Ernest L. Passailaigue Jr. of SCEL.

Since the start of the South Carolina Education Lottery in 2002, more than $1.15 billion has been turned over to the state to be appropriated by the Legislature through fiscal year 2005-06. Lottery funds have been used to support a variety of educational programs, which include $390.7 million for elementary and secondary school programs and more than $1 billion for higher education programs including half a million scholarships and endowed chairs at state universities.