Scientific Games, German lottery sign deal

NEW YORK -- (PRESS RELEASE) -- Scientific Games (Nasdaq: SGMS) announced that it has been awarded a contract with the Rheinland-Pfalz Lottery to supply instant tickets and cooperative services. The contract begins in February of 2008 and will run for five years, with options to extend for additional two year increments. Scientific Games will handle the manufacturing and distribution of instant tickets throughout Rheinland-Pfalz, including shipping, warehousing, telemarketing, and will advise on game design and marketing issues. Revenues to Scientific Games will be based on a percentage of sales. Rheinland-Pfalz has a population of four million, about the same as the U.S. state of Kentucky, and approximately 1,300 retailers.

"The Rheinland-Pfalz contract was an important award for us. Not only do we see tremendous growth for instant tickets throughout Rheinland-Pfalz, we also see this as a show of confidence for our German lotteries," said Lorne Weil, Chairman and CEO of Scientific Games. "Instant tickets in Germany only accounted for 3% of an 8 billion euro lottery market in 2006. This is a sharp contrast to the United States, UK, Italy and France, where Scientific Games is the primary instant ticket supplier."

"We are looking forward to optimizing our instant ticket lottery through the very capable hands of Scientific Games," said Hans-Peter Schossler, managing director of Lotto Rheinland-Pfalz GmbH. "We have witnessed Scientific Games' success in Germany and other European countries and we hope to see the same in Rheinland-Pfalz."