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Indiana Lottery Offers Internet Entries for a ``Second Chance'' Drawing in Daily Games

29 August 2001

NORWALK, Connecticut -- (Press Release) -- eLOT, Inc. (OTC BB: ELOT), a leading provider of web-based retailing and Internet marketing services to governmental lotteries, announced today that Indiana's Hoosier Lottery is utilizing eLottery's technology and services to become the first state lottery to offer its customer the opportunity to participate on the Internet in a ``Second Chance'' prize drawing for online lottery games.

While the New Jersey, Kentucky and Hoosier lotteries all have employed eLottery to install and operate successful Internet second chance sweepstakes for instant lottery tickets; this event marks the first time a governmental lottery will be using the Internet as an entry vehicle to promote the launch of its Mid-day drawing for Daily 3 and Daily 4 online games. The Daily 3 and Daily 4 games represent approximately 10% of the Hoosier Lottery's $548 million in annual sales.

According to the Hoosier Lottery; if a ticket is sold through a lottery retail agent beginning on August 19, 2001, and is a non-winner, the lottery patron now has the opportunity to visit www.hoosierlottery.comthe website, join the VIP Club developed by eLottery, and enter the non-winning daily tickets into an interface developed by eLottery. Then the players can enter the serial numbers on his lottery ticket into an Internet interface for a chance to win cash in Second Chance cash drawing. This offer is powered by eLottery's IMARCS system. Any eligible non-winning Daily 3 or Daily 4 ticket purchased is eligible to win one of five (5) $100 prizes each week for a total of 10 $100 prizes. The contest will last for 2 weeks starting August 20, 2001 and will end on September 2, 2001.

eLOT and eLottery CEO Ed McGuinn stated, ``IMARCS is already a proven Internet loyalty solution for the Hoosier Lottery --- powering both its Hoosier Lottery VIP Club and its Second Chance promotion for instant tickets. Today's announcement is a logical expansion of our technical capabilities and we expect to be able to immediately demonstrate the success in Indiana to all of our existing lottery clients and prospects.

Hoosier Lottery Director, Jack Ross stated, ``We are pleased to offer this exciting Second Chance opportunity for our online Daily 3 and Daily 4 customers. We were impressed with the ability of eLottery to launch and implement this program in a relatively short period of time. We have every reason to expect that the added value will be well received by our Hoosier Lottery players.''

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