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Scientific Games reports multi-state contract

21 Sep 2007

NEW YORK -- (PRESS RELEASE) -- Scientific Games (Nasdaq: SGMS) announced that 23 lotteries have signed on to the multi-state "Deal or No Deal" instant game. New York launched their $5 instant game on August 22nd and so far it is one of the top five selling $5 tickets ever. The Pennsylvania, Vermont, Missouri and Washington's lotteries have also launched their $5 versions of the game with the remaining states launching later this month or in October to coincide with the show's second season. The launch of this innovative game concept has been much-anticipated by lotteries across the country.

"We internally discussed ways to build on last year's success of 'Deal or No Deal' and determined that offering players the opportunity to actually play the game show would be a compelling and ground-breaking opportunity," said Steve Saferin, President of Scientific Games Properties. "We put together deals with both Endemol, the show's producers, and Howie Mandel to give lottery players the chance to fulfill the fantasy of actually playing the game show in real life. It is truly a once-in-a-lifetime prize."

In addition to the trips, which include a true "Hollywood experience" for the winners and three of their guests, every participating state can offer and advertise the final second-chance drawing of $1 million dollars. Even after the "top prize" of a trip to Hollywood, there is another top prize, giving lotteries the opportunity to continue selling the game. To date, there are 117 trips lined up, with more expected due to potential game re-prints.

"Many lotteries are not large enough to offer a $1 million second-chance drawing," added Saferin. "But this game allows them to do just that. That's how we designed it. This will be special for their players and will attract a new player base." Also, as part of the "deal" negotiated by MDI Entertainment, a wholly-owned subsidiary of Scientific Games, participating lotteries have created point of purchase materials that feature the likeness of Howie Mandel and are using MDI created/provided radio and television spots featuring Howie Mandel.

Last year, 19 lotteries in the U.S. and Canada ran their own versions of "Deal or No Deal" at different price points with a combined average index of over 130. Some states indexed at close to 200 with the game selling out in a matter of 3-4 weeks. In its first season last year, "Deal or No Deal" swept the ratings and proved to be a true television phenomenon. The second season started this past Monday and will then switch to Friday and run every Wednesday and Friday. Scientific Games took the play style of the game show and developed a unique elimination play style for instant tickets. In the linked multi-state instant game, lotteries can choose between traditional key number match play style and the elimination style.

 
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