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eLOT Announces Additional Cost Reductions

eLOT has taken several steps to reduce the cash burn rate including a further reduction in headcount in addition to the cuts announced in December. The Company also implemented a salary deferral program for all remaining employees. Under the program, Edwin McGuinn, President and CEO, has deferred approximately 40% of his salary.

Since December 31, 2000, eLOT has reduced its operating cash burn rate by approximately $300,000 per month. The Company is on target to reduce the monthly burn rate by an additional $150,000 by the end of the second quarter.

Edwin McGuinn commented, ``We are taking the necessary steps to put the Company on a more solid financial footing and continue to explore several strategic alternatives for financing activities and operations going forward. We are also pursuing similar transactions to our recently announced Network60 acquisition that will contribute to a further reduction in the burn rate and accelerate reaching cash breakeven.''

eLOT also announced that it received a Nasdaq staff determination on March 27, 2001 indicating that the Company has failed to comply with the $1.00 minimum bid price requirement for continued listing set forth in Marketplace Rule 4450(a)(5), and that its Common Stock is therefore subject to delisting from the Nasdaq National Market.

The Company has requested a hearing before a Nasdaq Listing Qualifications Panel to review the staff determination. A hearing date has not been set yet. Pending completion of the appeal process, eLOT will continue to be listed on the Nasdaq National Market.

Over the past few years eLOT has benefited from the support of a group of more than 20 market makers. In the event the appeal process is unsuccessful the Company expects to maintain liquidity in light of its history of strong volume and a broad shareholder base.

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