Pacific Lottery Corporation

Pacific Lottery Corporation

January 06, 2005 09:00 ET

Pacific Lottery Receives Performance Guarantee from Vietnamese Lottery Terminal Manufacturer


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: PACIFIC LOTTERY CORPORATION

TSX VENTURE SYMBOL: LUK

JANUARY 6, 2005 - 09:00 ET

Pacific Lottery Receives Performance Guarantee from
Vietnamese Lottery Terminal Manufacturer

CALGARY, ALBERTA--(CCNMatthews - Jan. 6, 2005) - Pacific Lottery
Corporation (TSX VENTURE:LUK) announces the receipt of a satisfactory
Performance Guarantee from its Vietnamese Lottery Terminal Manufacturer,
signalling the beginning of an important activity directly related to
the launching of the Ho Chi Minh City (formerly Saigon) online lottery
program.

"This event satisfies an important condition of our production contract
and marks the beginning of full scale commercial production of our
modern on line lottery Terminals," said David Aftergood, President and
CEO. "We expect the Terminals to be installed immediately upon delivery
as part of the launch of the Ho Chi Minh City on line lottery program."

The production agreement followed upon the recent successful testing of
the prototype Terminal produced by IMET, a Vietnamese State owned and
controlled company. The commercial production of the Terminals will be
carried out by HANEL (Hanoi Electronics Corporation) under the terms of
an Agreement that calls for the initial production of 600 modern online
lottery Terminals for use in the Ho Chi Minh City lottery rollout.

Pacific Lottery expects to take delivery of the Terminals over the
course of the next twelve to sixteen weeks. The Terminals will be
installed in the retailer network on a rolling basis as they are tested
and delivered. Aftergood added "The delivery of these lottery Terminals
will mark a significant milestone in the expansion of the Vietnamese
National Online Lottery program to Ho Chi Minh City."

The recently signed Production Agreement requires a deposit payment of
50 percent of the total cost be made at time of order, subject to
receipt of satisfactory performance bond or guarantee. A further 40
percent payment made at time of delivery and a final 10 percent of total
cost paid one month after delivery of the Terminals.

About Pacific Lottery Corporation:

Pacific Lottery Corporation is engaged in the outsource management of
online lotteries and related professional services for delivery to a
growing audience of international customers. Today, The Corporation is
engaged in the installation of its online lottery contract in support of
the establishment of the Ho Chi Minh City Lottery program and leads the
technical support activities for the on-line lottery system run by the
Construction Lottery of the Capital-Hanoi in Vietnam.

This release contains forward-looking statements within the meaning of
the Private Securities Litigation Act of 1995. Investors are cautioned
that such forward-looking statements involve risk and uncertainties,
which could cause actual results, performance or achievements of the
Company, or industry results to differ materially from those reflected
in the forward-looking statements. Forward-looking statements are based
on the current expectations, projections and opinions of the Company's
management, and the Company undertakes no obligation to publicly release
the results of any revisions to such forward-looking statements which
may be made, for example to reflect events or circumstances after the
date hereof or to reflect the occurrence of unanticipated events.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Pacific Lottery Corporation
    David Aftergood
    CEO
    (403) 266-8900
    (403) 266-8909 (FAX)
    Email: info@pacificlottery.ca
    Website: www.pacificlottery.ca
    The TSX- Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or the accuracy of this news release.