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Applied Gaming Solution Signs Lottery Contract in Vietnam

CALGARY -- Applied Gaming Solutions of Canada Inc. has signed a seven-year comprehensive agreement to provide an online, real-time lottery with a state-owned and controlled corporation, the Construction Lottery of the Capital--Hanoi, in the Socialist Republic of Vietnam.

The Canadian company will supply all the equipment, software, training and consulting services required to install, implement and train local lottery staff in order to operate a modem online lottery system with progressive game capabilities. It will also initially provide AWI's masterlink central system with two progressive games, a daily quick pick and a by-weekly Fantasy Five, along with 300 AWI ovation terminals. This system has national rollout expansion capabilities of up to 10,000 terminals once the Hanoi pilot program is fully operational. The Corporation estimates that its total initial investment will be about $6.5 million CDN. The Corporation intends to secure EDC (Export Development Corporation) insurance coverage for the total investment as well as a maximum of six months of rolling coverage for contract revenues for the duration of its term.

Applied Gaming, which was awarded the rights on May 13, 1998, will receive four percent of gross sales for the first five years and one percent of gross sales for years six and seven as compensation. The agreement also stipulates that all payments are payable in US dollars to be deposited in the corporation's bank account outside of Vietnam. The agreement establishes some terms and conditions for the national rollout as well.

"This is a significant achievement in our goals to expand the international presence of the corporation," said David Aftergood, president and CEO of Applied Gaming Solutions. "The signing of this contract firmly establishes Applied Gaming as a preeminent Canadian online lottery supplier in the growing global industry."

Aftergood will provide a presentation and respond to questions Tuesday, June 9, 1998 at noon Mountain Standard Time. Interested parties across North America may connect to the presentation by calling 1-800-736-2214 between 11:45 and 12:00 p.m. (MST).

Applied Gaming also announced that it signed a Memorandum of Understanding (MOU) with the Lottery Company of Ho Chi Minh City. Formerly Saigon, Ho Chi Minh City Vietnam's largest city with a total population of approximately 10 million and estimated lottery revenues up to five times larger than Hanoi. The MOU paves the way for Applied Gaming to work cooperatively with the Lottery Company to develop feasibility studies and proposals which are required in order to secure necessary regulatory and governmental approvals to expand the online lottery program in the Socialist Republic of Vietnam.

Applied Gaming Solutions of Canada Inc. is a leader in providing comprehensive, integrated lottery and gaming products worldwide. It's licensed in the Canadian provinces of Ontario, Alberta and Saskatchewan with several other licenses pending, both domestically and internationally. Its common shares trade on the Alberta Stock Exchange under the symbols AGC.

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