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MDI's Announces New Driver Games

30 January 2001

HARTFORD, Conneticut--(Press Release)--Jan. 30, 2001--MDI Entertainment, Inc., (NASDAQ:LTRY) announced today that state lotteries are speeding orders to MDI for exclusive games and promotions featuring some of the most popular drivers on the NASCAR Winston Cup Series race circuit.

Lotteries with MDI's driver games on their instant lottery ticket introduction schedule this spring include Delaware, Indiana, Iowa, Kentucky, Maine and Pennsylvania. The contracts represent over $2 million in revenue to MDI and will generate over $25 million in lottery revenue.

``This is a testament to the popularity of the NASCAR drivers that MDI has brought to the lottery industry, said Steve Saferin, President and CEO of MDI. ''We have signed up six lotteries for upcoming driver games this season, and three others are in stages of negotiation with us. We're very grateful that our customers are seeing the potential of these games to capture the `fan passion' associated with this sport and its superstars,`` he added.

Mr. Saferin noted that the explosive popularity of NASCAR Winston Cup racing has made it the fastest growing spectator sport in the nation. And the fans have fueled $700 million in annual logo merchandise sales, especially products linked to specific drivers.

MDI has assembled a stable of all-star drivers exclusively available for lottery promotions. They include:

Dale Earnhardt - NASCAR's undisputed leader in licensed goods sales and going for a record eighth Winston Cup crown in 2001;

Dale Earnhardt, Jr. - Carrying on the Earnhardt tradition of championship racing for a new generation of fans;

Jeff Burton - Perennial front-runner for the championship trophy, finished second in '99 and third behind Earnhardt in 2000 season standings;

Mark Martin - Considered the greatest active driver without a championship;

Matt Kenseth - Raybestos Rookie of the Year for the 2000 season. The drivers' images, autographs, cars and car number logos are included in MDI's license.

MDI is a worldwide leader in creating, marketing and implementing entertainment-based ``turn-key'' promotions on behalf of the Lottery Industry, with a focus on licensed brands and cultural icons.

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