Partners agree on 10-year license for lotteries
NEW YORK, May 2 /PRNewswire-FirstCall/ -- Scientific Games (Nasdaq:
SGMS) announced today that it has entered into a new exclusive agreement
with Electronic Game Card, Inc. (OTC Bulletin Board: EGMI). Scientific
Games will have a 10-year license for the Electronic GameCard(TM)
intellectual property for the worldwide lottery industry. That license will
be exclusive in North America and Italy for at least the first three years.
This agreement streamlines the sales and manufacturing process and replaces
the previous joint venture that has been dissolved as part of the new
contract.
"We see great potential in the future of hand-held electronic lottery
games and the Electronic GameCard(TM) is a desirable and customer proven
product in this new and expanding lottery category," said Lorne Weil,
Chairman and CEO of Scientific Games. "We consider ourselves a pioneer in
the lottery industry, and plan on continuing to do so with successful
products like the Electronic GameCard(TM)."
The Electronic GameCard(TM) is a pocket sized extended play digital
instant lottery ticket. Each GameCard, is about the size of a driver's
license and no thicker than three credit cards, but is battery powered and
loaded with tons of multiple plays. The Electronic GameCard's(TM)
electronic play replaces the traditional scratch play on the paper instant
tickets. LCD screens on the front of the card display the symbols in a
particular play and show whether it has won a prize. The GameCard then
aggregates the player's winning points that equates to a cash prize claimed
like any other lottery instant ticket.
Both the Kansas and Iowa lotteries have offered the Electronic
GameCard(TM) to their players and both resulted in extremely strong sales.
After the first five weeks of sales, which totalled $1.1 million and
indexed at 238, the Kansas Lottery re-ordered a full quantity of its $20,
80 plays, Electronic GameCards(TM) branded as Super Sevens.
"This new arrangement offers a win-win opportunity for both our
companies as we each will be able to maximize the profitability of future
Electronic GameCard sales. Additionally, our company can now focus its
resources on expanding the market for the GameCard into new areas, as
Scientific Games devotes its attention to promoting the Electronic
GameCard(TM) within its target Lottery markets," said Roger Holdom, company
spokesperson. "As the technology leader in the lottery industry, Scientific
Games is the best possible partner for us, establishing credibility for our
GameCard with their reputation for excellence and creativity."
In 2005, the Public Gaming Research Institute (PGRI) named the EGC as
the Lottery Product of the Year during its conference in Las Vegas. The
PGRI award recognizes the importance of new products to the growth and
continuing success of worldwide lotteries.
About Electronic Game Card, Inc.
Electronic GameCard(tm), Inc. (OTC BB: EGMI), develops, produces and
markets the innovative Electronic GameCards(tm) to the state lottery,
Indian casino, and promotional industry worldwide. The Company's lead
product is the Electronic GameCard(tm), is a patent protected, credit
card-sized pocket game combining proprietary technology of interactive
capability with the unique "extended play" and "instant win" excitement.
The Electronic GameCard(TM) can be programmed to suit a variety of
gaming and promotion applications. EGMI's client base is across the $100
billion global market of state and national lotteries, Gaming and Casinos,
Indian Gaming and the expanding sales promotion and incentive markets
managed through a network of agents globally. For further information
please visit http://www.electronicgamecard.com.
About Scientific Games
Scientific Games Corporation is the leading integrated supplier of
instant tickets, systems and services to lotteries worldwide, a leading
supplier of fixed odds betting terminals and systems, Amusement and Skill
with Prize betting terminals, interactive sports betting terminals and
systems, and wagering systems and services to pari-mutuel operators. It is
also a licensed pari-mutuel gaming operator in Connecticut, Maine 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.
Company Contact:
Investor Relations
Scientific Games Corporation
212-754-2233
Forward-Looking Statements
In this press release we make "forward-looking statements" within the
meaning of the U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements describe future expectations, plans, results or
strategies and can often be identified by the use of terminology such as
"may," "will," "estimate," "intend," "continue," "believe," "expect,"
"anticipate," "could," "potential," "opportunity," or similar terminology.
These statements are based upon management's current expectations,
assumptions and estimates and are not guarantees of future results or
performance. Actual outcomes may differ materially from those projected in
these statements due to a variety of risks and uncertainties and other
factors, including, among other things: competition; material adverse
changes in economic and industry conditions in our markets; technological
change; retention and renewal of existing contracts; availability and
adequacy of cash flow to satisfy obligations and indebtedness or future
needs; protection of intellectual property; security and integrity of
software and systems; laws and government regulation, including those
relating to gaming licenses, permits and operations; seasonality;
dependence on suppliers and manufacturers; factors associated with foreign
operations; dependence on key personnel; failure to perform on contracts;
resolution of pending or future litigation; labor matters; and stock price
volatility. Additional information regarding risks and uncertainties and
other factors that could cause actual results to differ materially from
those contemplated in forward-looking statements is included from time to
time in our filings with the SEC, including our most recent Annual Report
on Form 10-K. Forward-looking statements speak only as of the date they are
made, and except for our ongoing obligations under the U.S. federal
securities laws, we undertake no obligation to publicly update any
forward-looking statements whether as a result of new information, future
events or otherwise.
SOURCE Scientific Games
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Related links:
http://www.scientificgames.com
http://www.electronicgamecard.com
http://www.prnewswire.com/comp/117695.html /
CONTACT:
Investor Relations, Scientific Games
Corporation, +1-212-754-2233
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