Scientific Games to Acquire German Instant Lottery Ticket Company

NEW YORK – (PRESS RELEASE) -- SCIENTIFIC GAMES CORPORATION (Nasdaq: SGMS) announced today that it has entered into an agreement to purchase all of the outstanding shares of Printpool Honsel GmbH, a German company which is the supplier of instant tickets to all of the 16 lotteries which operate in Germany. The purchase price and other terms of the transaction were not disclosed. The transaction is expected to close before year end and is subject to the satisfaction of certain closing conditions.

The company, which also sells other lottery products such as bet slips and paper rolls, serves customers in approximately 25 countries. As part of the transaction, Jan and Klaus Honsel, the principal shareholders and managing directors of the company, will enter into employment agreements pursuant to which they will continue to manage the company after the closing.

Lorne Weil, the Chairman and CEO of Scientific Games, stated, "We are quite pleased to be able to acquire Printpool Honsel. The German instant ticket market represents a superb opportunity for us. In comparison with the other major markets in Europe, sales of instant tickets in Germany have been extremely low. With 82 million people in Germany and instant ticket lottery sales of $500 million annually, there is substantial room for growth.

Mr. Weil continued, "We intend to combine the excellent relationships the Honsel family has enjoyed in the German marketplace with our economies of scale and other capabilities, especially in the area of cooperative services, to achieve substantial growth in this market. Further, we see excellent opportunities for synergy between the instant and online lottery businesses in Germany; we are the online system supplier to 6 of the 16 lotteries, and provide the Oddset sports betting system to all 16 lotteries. This transaction is a perfect application of our strategy to make acquisitions which enable us to expand our reach into new markets utilizing our unique expertise and unmatched capabilities."

Scientific Games Corporation is the leading integrated supplier of instant tickets, systems and services to lotteries, and the leading supplier of wagering systems and services to pari-mutuel operators. It is also a licensed pari-mutuel gaming operator in Connecticut 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 http://www.scientificgames.com.