Scientific Games to Purchase Global Draw - Wednesday 25th of January 2006

NEW YORK – Scientific GamesCorporation (Nasdaq: SGMS) announced today that it has signed a letter ofintent to purchase The Global Draw, Ltd. and certain related companies. In theUnited Kingdom, Global Draw is a leading supplier of fixed odds bettingterminals and systems, and interactive sports betting systems. Global Draw isbeginning to extend its central determination, fixed odds system to meet theneeds of European video lottery markets.

The nonbinding letter of intent specifies an upfront purchase price ofapproximately $183 million, plus an earn-out which will be paid to the sellingshareholder and existing management team depending on the future financialperformance of the business. The acquisition is expected to close within thefirst quarter of 2006. In fiscal 2004, the most recent period for whichaudited financial statements are available, Global Draw's U.K. gaming andbetting machine operations reported revenues of #32 million. Scientific Gamesexpects to finance the acquisition through a combination of borrowings underits existing revolving credit facility and new debt.

Steve Frater, Managing Director of The Global Draw, said "We are veryexcited about the prospect of working with Scientific Games to develop theEuropean VLT business, and to even further develop our position in the U.K.betting and gaming market. Scientific Games can provide us technologies,relationships and expertise that will be invaluable in continuing to grow theexisting business, and which will help us use our technology to enter newmarkets. Scientific Games have shown great confidence in the management teamand its strategy. Our economic interest, via the earn-out, gives the team astrong incentive to remain committed to the success of the business for thelong term. This should give our existing customers the confidence that ourstrong relationships will continue to be managed as usual but with the backingand resources of a world class provider of gaming and lottery products."

Walter Grubmuller, selling shareholder, said "I am very impressed with thecapabilities and culture of Scientific Games. I believe that this marriagewill vastly enhance our ability to be a leading player in the evolvingEuropean markets. I look forward to being a partner with Scientific Games."

Lorne Weil, Chairman and CEO of Scientific Games, said "Walter, Steve andtheir team have done a remarkable job of building a leading U.K. andcontinental European gaming business. Global Draw will give us a platform foraccelerating our participation in sports betting and video lottery businessesglobally. I greatly look forward to working with Steve and his team, alongwith our existing team, to execute this growth strategy." The potential transaction is subject to the execution of a bindingdefinitive agreement, and other conditions.

Other news from around the same time

Bartons Ex Caught up in Casino 'Exaggeration' - Wednesday 25th of January 2006

LAS VEGAS, Nevada As reported by Contact Music: "Mischa Barton's ex-boyfriend Brandon Davis was le....


GSA Names Technical Director - Wednesday 25th of January 2006

LAS VEGAS – In a move designed to speed progressand quickly provide its standards to the indust....


Casino Plan With Penguins is Isle of Capri's Biggest Bet - Wednesday 25th of January 2006

PITTSBURGH As reported by the Post-Gazette: "The company that built its fortune on riverboat gambl....


Scientific Games Wins Colorado Lottery Contract - Wednesday 25th of January 2006

NEW YORK – Scientific Games Corporation(Nasdaq: SGMS) has been awarded the instant ticket contr....


North Dakota Tribe Seeks Casino - Wednesday 25th of January 2006

NORTH DAKOTA – As reported by the Grand Forks Herald: "A coercive treaty took land in Grand Forks....


Borgata Names President, COO - Wednesday 25th of January 2006

ATLANTIC CITY, New Jersey Borgata Hotel Casino & Spa, a joint venture of Boyd Gaming Corporation....


Live 3D Poker Adds Games to Website - Wednesday 25th of January 2006

CURACAO – Online poker players now have a new place to increase their poker profits thanks to L....


Council Calls for Casino Rethink - Wednesday 25th of January 2006

COVENTRY, UK As reported by the BBC: "Coventry City Council is calling on the government to chan....


Ferris Wheel Puts a Spin on New Frontier - Monday 6th of February 2006

p>Steve Wynn's not talking, but you have to wonder what the design-focused casino boss thinks about ....


Isle of Capri Revises Q3 Earnings - Wednesday 25th of January 2006

BILOXI, Mississippi – Isle of Capri Casino,Inc. (Nasdaq: ISLE) on Monday announced that it expec....