Scientific Games signs China deal

NEW YORK – (PRESS RELEASE) -- Scientific Games (Nasdaq: SGMS) announced that it has formed a joint venture with a leading Chinese technology company, Inspur, to launch instant tickets in the Shandong Province of China. Shandong Province, among the largest and wealthiest in China, has a population of approximately 92 million and is one of the China Sports Lottery's top performing provinces.

The joint venture will be responsible for instant ticket game design, marketing, warehousing, distribution, telemarketing, validation and retailer selection and training. Revenues to the joint venture will be paid as a percent of retail sales.

Lorne Weil, Chairman and CEO of Scientific Games commented on the deal, "We are very enthusiastic about the potential for the Chinese lottery market, especially instant tickets. Inspur is a great asset to us as a local partner, with a robust history in Shandong, and we look forward to launching Shandong as a model for instant ticket sales throughout the PRC. In 2006, total lottery sales exceeded US$8 billion, representing a year-on-year growth rate of nearly 50 percent, with online lottery representing the vast majority of sales. We believe that the reintroduction of instant tickets into the Chinese market will help guarantee the continued explosive growth of the world's fastest growing lottery market."

Added Piju Sun, CEO of Inspur, "Scientific Games is the global leader of the instant ticket business, and we look forward to bringing their successful cooperative service model to the Shandong Province. Our joint venture will look to quickly roll out a network of retailers throughout Shandong that will sell China's most sophisticated and attractive instant tickets with the highest level of security and integrity for the benefit of the great causes supported by the China Sports Lottery."