Pacific Lottery Corporation

Pacific Lottery Corporation

July 11, 2005 17:41 ET

Pacific Lottery Announces Terminal Production by Vietnamese Lottery Terminal Manufacturer Underway

CALGARY, ALBERTA--(CCNMatthews - July 11, 2005) - Pacific Lottery Corporation (TSX VENTURE:LUK) (the "Corporation") announces another milestone has been reached with the commencement of production of 600 proprietary lottery terminals (the "Terminals"), pursuant to a previously announced lottery terminal Manufacturing Agreement between the Corporation and the Hanoi Electronics Corporation ("HANEL").

The commencement of manufacturing of the Terminals follows the receipt by the Corporation of a satisfactory, expiry extended, replacement of the Advanced Payment Guarantee from the Bank for Investment and Development of Vietnam (the "Bank Guarantee") on behalf of the Terminal manufacturer HANEL, and the subsequent payment by the Corporation of the required deposit in accordance with the terms of the Manufacturing Agreement. The Bank Guarantee reimburses the Corporation for the amount of the entire deposit (amounting to 50% of the total contract price), in case there is any default by HANEL in the manufacture of the Terminals.

The manufacturing, delivery and installation of the Terminals in Ho Chi Minh City (formerly Saigon), Vietnam's most populous and prosperous city, enables the Corporation to fulfil its obligations under its agreement with the authorised Vietnamese Government authority to provide the technology and related services required for the installation and operation of a modern online lottery program for the Ho Chi Minh City marketplace.

The Manufacturing Agreement also requires the Corporation to make a further 40% payment of the cost of the Terminals at time of delivery and the remaining 10% to be paid one month after delivery and installation of the Terminals.

The Corporation anticipates delivery of the Terminals over the course of the next sixteen weeks. Thereafter, once all Terminals are tested and accepted, the Terminals will be installed in the retailer network in anticipation of the launching of the modern online lottery system in Ho Chi Minh City.

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.

SEC 12g exemption 82-4832

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.

The TSX- Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this news release.

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