Scientific Games to acquire Games Media

NEW YORK – (PRESS RELEASE) -- Scientific Games (Nasdaq: SGMS) announced today that it has signed a letter of intent to purchase Games Media Ltd. and related companies. Games Media is a UK based company developing, publishing and selling "Amusement With Prizes" (AWP) machines, "Skill With Prizes" (SWP) machines and related content principally to operators who lease them to the UK public house market. The acquisition is expected to close prior to the end of 2006.

The UK public house market comprises approximately 60,000 pubs which have an estimated total of 120,000 AWPs and 30,000 SWPs.

Games Media is the third largest supplier of analogue AWPs in the UK and has developed a new multi-game digital terminal ("Juice"(TM)) which has been undergoing trials with all the major UK pub groups including Enterprise Inns, Punch Taverns, Mitchells and Butler and Union Pub Company. Scientific Games' intention is to offer an integrated digital AWP and SWP solution including content, systems, communication and service. Scientific Games' Global Draw business facility will provide it's existing systems and national Global Draw service infrastructure that maintains 9,000 networked digital fixed odds betting terminals to UK licensed betting offices.

Andrew Ludlow, Managing Director of Games Media said "We are delighted to have Scientific Games and Global Draw as our partners to take forward our plans for the expansion of our digital products. They have the logistical, service and network infrastructures that we lack to take forward our digital proposition as an integrated solutions provider and the financial resources to allow us to actively pursue these ambitions."

Steve Frater, Managing Director of The Global Draw, said "Following on from our success in introducing digital gaming products to the Licensed Betting Office sector we have been eyeing a move into the UK AWP market for some time. This will enable us to get better use of our UK wide service infrastructure and experience of precipitating change in this market to networked digital platforms similar to what we offer. Games Media are the perfect partner for us as they have significant experience of and strong relationships within the pub retail sector."

Lorne Weil, Chairman and CEO of Scientific Games, said: "The addition of the Games Media business to our Global Draw operations perfectly positions us to be the catalyst for change in the UK AWP market as it switches over to a networked digital model. The acquisition broadens both our access to content and expertise in incorporating content from third parties onto other platforms. The access to the pub leisure market in the UK also opens up a number of other opportunities for Scientific Games including social lotteries and monitor based events".