SOUTH AFRICAN LOTTERY BACK ON TRACK

28 September 2007

Intralot to partner South African company Gidani in new management


Making the media headlines this week was the imminent return of the South African national lottery after an almost six month hiatus caused by legal wrangling over the government's disputed appointment of a new operating company.

With that straightened out, the internationally experienced Interlot firm made a bullish announcement this week that it has partnered with new license holder Gidani (Pty) Limited to recommence operations on the lottery, which was popular with a wide cross-section of South Africa's 43 million population.

The dispute apparently brought about an extensive re-examination and restructuring of the shareholdings of the applicants by the Minister of Trade and Industry, following a court ruling that set the newly awarded license aside on March 5 this year.

Interlot claims that whilst the "re-examination" has been going on, Gidani has "...maintained its readiness and therefore will be able to start immediately the operations of the National Lottery."

The duration of the new license is 7 years and 8 months, and Interlot predicts that Gidani will achieve substantially better results than the previous Uthingo company's annual revenues of about Euro 440 million, using more advanced technology, superior know-how, new gaming content and the rapid expansion of the network.

Interlot South Africa, in which Interlot S.A. is the majority shareholder, is currently the biggest shareholder of Gidani and will become the second largest stakeholder after the South African Government exercises its option to join the company. Other shareholdings in Gidani are based upon Black Economic Empowerment requirements in the shape of domestic South African companies, mainly in the investment and NGO sectors.

Intralot will provide all the necessary technology and services for the rejuvenated lottery, and has procured, installed and will support the operation of an advanced integrated "gaming total solution" which includes an initial installation of more than 7 500 "Coronis" terminals and peripherals, the "Lotos" operating system and the telecommunications infrastructure needed for the smooth operation of the network.

Interlot is confident that within the first 3 years of operation, the Gidani retailer network will increase to approximately 11 000 points of sale throughout the country.

Training on the new terminals and gaming software, together with client services’ best practices and transactions’ safety to the retailers across the country will also be controlled by Interlot. In a short period of time, 27 000 individuals have already been trained by 100 trainers in 103 venues around the country as well as during in-situ training sessions.

Interlot has published information regarding the lottery going forward:

* The Lottery’s operation will be inaugurated with a network of 7 626 retailers and the plan is to grow by at least 3 000 additional PoS within the first 3 years of operation.

* The Lottery will be present everywhere, in all magisterial districts in South Africa, through at least two retailers in each district.

* The retailers’ network is already fully expanded not only in conventional lottery shops but also in convenience stores, post offices, supermarkets, cafes and fast-food type stores and general trade shops.

* Gidani will offer retailers a significant improvement in their profitability, through better commissions and lower costs.

* During Gidani’s operation of the National Lottery, "good causes" will benefit by a very significant increase in the contributions they receive from the lottery operation.

Intralot S.A. CEO, Constantinos Antonopoulos says: “Gidani has been fairly re-named the new National Lottery operator of South Africa, as it carries proven and sound national and worldwide experiences, through its local shareholders and its international partner, Intralot. We commit ourselves to contribute to the best operation of the South African Lottery and to create a valuable and mutually profitable collaboration with our Gidani partners in order to deliver significant benefits to the National Lottery and new exciting gaming experiences to the citizens of South Africa”.

With a presence in over 40 countries, with more than 3 600 staff and revenues of Euro 791,4 million in 2006, Intralot is active on all 5 continents.

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