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Investrend Research Announces Investment Opinion on eLOT, Inc.

The updated report reviews the acquisition of Network60 by eLOT. The acquisition strengthens eLOT's position to uniquely service the US and international lottery industry. The acquisition should bring additional cash flow to eLOT as it evolves to be cash flow positive.

eLOT, Inc. is positioned to be the leader in the web-based sale of lottery tickets and ticket subscriptions as the state and international lotteries adopt the Internet as an alternative marketing and distribution channel. By 2004, over US$123 billion is expected to be wagered via the Internet on all forms of gaming, with at least half coming from North Americans.

Lotteries, on which US$130.0 billion was wagered worldwide in 2000, are one of the most popular forms of gaming, but are mostly controlled by governments. Hence, forecasters have taken a conservative near term view towards their migration to the Internet, particularly in North America. The Company has applied a number of strategies that are beginning to demonstrate that eLOT should achieve an important share of the commission income to be available for lottery ticket subscriptions and sales transacted over the Internet.

Lotteries are now beginning to migrate marketing functions and some subscription sales to the Internet. This trend should accelerate. The Congressional debate should shift to a states rights position. Lottery annual sales in North America have stagnated around $40 billion, with competition for the gaming dollar rapidly intensifying.

The industry needs new players and increased player frequency. Forward thinking lottery managers such as in Indiana, Maryland, and Idaho recognize the benefits of incremental business and increased frequency of play that can be attributed to the Internet, and have contracted with eLOT.

Mr. Dutton is the Investrend Director of Research. He is a member of both the Boston and Los Angeles Security Analyst Societies, and has been an analyst and director of research at several firms including Moseley, Hallgarten, Estabrook & Weedon and LH Friend, Weinress, Frankson & Presson. He was president of Corsair Asset Management, an asset management firm, for over 11 years. For seven years, he was executive vice president of the international hospital company American Medical International. Mr. Dutton's past work includes development and execution of strategic and financial planning for small cap companies.

Mr. LaKarnafeaux, CFA, during the past 30 years, has held senior positions in international and regional investment banking firms as a securities analyst, portfolio manager, and director of corporate finance. Mr. LaKarnafeaux is a principal of the consulting firm, KeyRatios, Inc. that assists early stage private and public companies in the areas of corporate valuation and capital formation. He has been an active member and officer of regional chapters of the Financial Analyst Society, The Corporate Finance Council, and the American Society of Appraisers.

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