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Scientific Games Awarded Maryland Contract

NEW YORK – (PRESS RELEASE) -- Scientific Games (Nasdaq: SGMS) was awarded the on-line lottery contract to supply a new range of lottery management services and equipment to the Maryland Lottery. The contract has an initial term of five years, expiring in June of 2011, and provides for a single five-year extension. The contract was awarded after a competitive request for proposal process, and is valued at approximately $81 million over its initial term.

In addition to full facility management services, Scientific Games will provide telemarketing sales and support for instant tickets, a service currently not being provided to the Lottery. The company will also supply the Lottery at start-up with new gaming equipment including approximately 4,200 Extrema(R) terminals, 3,200 monitors for Keno and other monitor games, 300 player-activated terminals, and the telecommunications network for the entire Maryland Lottery system.

Scientific Games holds the current contract, which first went into effect in December 1995. Terms of the new contract significantly broadens Scientific Games responsibilities to the lottery.

"The Maryland Lottery is a known leader in the industry and we are delighted to be working with them. With the new range of management services and equipment we are providing, we will help the Lottery continue to produce superior games and, ultimately, generate more record-breaking sales," said Lorne Weil, Chairman and CEO of Scientific Games.

According to Weil, the state lotteries that have contracted with Scientific Games for such operational support and management services have been able to cut overhead and boost revenues, returning greater proceeds to public programs.

The Maryland Lottery produced record sales of $1.486 billion in fiscal 2005, of which almost a third, over $477 million, went into the State's general fund to support such services and programs as education, public health, human resources, public safety and more, to the benefit of the people of the State.

"Scientific Games has managed the current contract very effectively and we anticipate even greater success as SGI integrates new state-of-the-art equipment with upgraded software," said Buddy Roogow, Director of the Maryland Lottery. "We believe that the new services they will be providing will help us build a stronger Lottery, and therefore return more funds to the people of Maryland."

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