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Aristocrat Settles Colombian Contract Dispute

5 August 2003

SYDNEY, Australia – As reported by the Dow Jones: “Aristocrat Leisure Ltd. , one of the world's largest gambling machine companies, has settled a dispute with a Colombian customer, effectively ruling off on a disastrous contract that exposed deep- seated problems within the company.

“News in February that the contract had collapsed was the start of a series of ugly disclosures and profit warnings by the Australia-based Aristocrat, causing its market value to nearly halve in one day and fall more than 76% over four months.

“Drastic management changes have helped the group restore some market value, but its Tuesday close at A$1.67 a share remains 60% below where it was prior to its fall from grace.

“…Under the settlement agreement, the Colombian customer will take and assemble 647 machines in kit form, rather than the originally contracted 3,000 machines. Aristocrat will provide spare parts for these machines and also for 120 Jubilee machines already held by the customer.

“…The total settlement cost of US$3.5 million will be covered by previously announced provisions, the company said.

“…Aristocrat's legal action against former Chief Executive Des Randall, includes an allegation that he breached his contractual obligations by allowing the 3,000 machines, worth about US$60 million, to be shipped to Colombia without payment or security for payment…”

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