NEW YORK, LONDON - December 16th 2004 - Electronic Game Card, Inc. (OTCBB:EGMI) today confirmed that the initial response to the pilot conducted with its partner, Scientific Games Corporation, and the Iowa Lottery of the Quarter Play™ electronic GameCards in the Cedar Rapids, Waterloo/Cedar Falls and Dubuque areas of Iowa has surpassed the upper expectations set for the new lottery industry product.
As of December 13, nearly 90% of the 20,000 electronic GameCards initially ordered by the Iowa Lottery for the three-month trial have been sold to the public via the 130 outlets in eastern Iowa selling the GameCards.
Dr. Ed Stanek, CEO of the Iowa Lottery Authority, and a leading innovator in the US lottery business, commented: "We are delighted with the consumer response to the Quarter Play™ electronic GameCard - sales being ahead of the targets set for the product. We believe electronic GameCards present a significant new revenue opportunity for the Iowa Lottery and we look forward to widening our electronic GameCard offering to the public in 2005.”
To this end, Electronic Game Card, Inc. (OTCBB:EGMI) Scientific Games Corporation (NASDAQ:SGMS) and Iowa State Lottery confirmed that an initial follow-on order of over half a million GameCard units is being made. The re-order will allow the continued roll-out of Quarter Play™ as well as the phased introduction of a further two electronic GameCard based products.
The results from Iowa are being closely watched by the industry. This re-order represents a significant step forward in the broader adoption of electronic GameCards by the lottery industry in the US.
Electronic GameCards are being marketed to the overall $150 billion global lottery industry through a joint venture formed between Electronic Game Card Inc. and Scientific Games Corporation, the world's leading supplier of "instant” products to the global lottery industry.
Electronic GameCards are an important next phase in the evolution of lotteries' traditional products, particularly in terms of extended playing time. These games give new-generation lottery players what they are demanding most, which is more entertainment value and greater innovation for their money.
About Electronic Game Card
Electronic Game Card, Inc., is a listed corporation (OTCBB: EGMI) distributing reward based digital games. Electronic Game Card owns a unique proprietary US pocket sized digital game platform known as an electronic extended play GameCard which has multiple applications for the "instant" international lotteries and charitable markets as well as the sales promotions reward and competition markets. http://www.electronicgamecard.com/.
About Scientific Games
Scientific Games Corporation (NASDAQ: SGMS) 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/.
In this press release we make "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as "may," "will," "estimate," "intend," "continue," "believe," "expect" or "anticipate," or the negatives thereof, variations thereon or similar terminology.
These forward-looking statements generally relate to plans and objectives for future operations and are based upon management's reasonable estimates of future results or trends. Although we believe that the plans and objectives reflected in or suggested by such forward-looking statements are reasonable, such plans or objectives may not be achieved.
Actual results may differ from projected results due, but not limited, to unforeseen developments, including developments relating to the following:
economic, competitive, demographic, business and other conditions in our local and regional markets;
changes or developments in the laws, regulations or taxes in the gaming and lottery industries;
actions taken or omitted to be taken by third parties, including customers, suppliers, competitors, members and shareholders, as well as legislative, regulatory, judicial and other governmental authorities;
changes in business strategy, capital improvements, development plans, including those due to environmental remediation concerns, or changes in personnel or their compensation, including federal, state and local minimum wage requirements;
the availability and adequacy of our cash flow to satisfy our obligations, including our debt service obligations and our need for additional funds required to support capital improvements, development and acquisitions;
an inability to renew or early termination of our contracts;
an inability to engage in future acquisitions;
the loss of any license or permit, including the failure to obtain an unconditional renewal of a required gaming license on a timely basis; and
resolution of any pending or future litigation in a manner adverse to us.
- Ends -
Corporate John Bentley (EGC - CEO) 646 723 8936
Sales Daniel Kane (EGC Inc) 646 723 8936
Press relations David Owen (gth media) 212 672 1870
Toby Hall (gth media) +41 22 747 7501