Scientific Games Signs Deals with Swedish Firm - Monday 23rd of January 2006

Scientific Games Corporation has signed an agreement to acquire substantially all of theonline lottery assets of the Swedish firm EssNet AB for 460 MSEK orapproximately $60 million. EssNet specializes in online lottery systems andterminals to run numbers games, sports betting, instant tickets and mobilegames on a national level. EssNet's lottery customers include seven states inGermany, the national lotteries of Hungary and Norway, Golden Casket andTattersall's Lottery in Australia, and other national lotteries. EssNet'sreported online lottery revenues for the first six months of 2005 wereapproximately 130 MSEK or approximately $16 million.

The acquisition will include substantially all of EssNet's existing onlinelottery contracts, as well as all technology and intellectual propertypertaining to its online lottery business. Scientific Games will also inheritEssNet's staff of technical experts and game designers, a key to its selectionas "IT Challenger of the Year" by the Swedish business magazine VeckansAffarer.

"This acquisition will not only boost our international lottery revenuesand market share, it will give us fresh access to some key markets includingScandinavia, Australasia and Europe, particularly in Germany where it bringsour online lottery customer list to 13 of the 16 states," said Lorne Weil,Chairman and CEO of Scientific Games. "We are confident that this acquisitionwill integrate well with our existing operations, provide a platform foradditional growth, and assist us in helping our instant ticket customers growtheir business."

The sale is subject to certain closing conditions including regulatory andcustomer approvals, purchase price adjustments, and other specifiedconditions. Scientific Games will finance the purchase under its existing $250million revolving credit facility. The company expects the acquisition ofEssNet to be accretive to earnings.

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