Pacific Lottery Corporation

Pacific Lottery Corporation

November 17, 2009 18:54 ET

Pacific Lottery Corporation: Third (3rd) Quarter Update

CALGARY, ALBERTA--(Marketwire - Nov. 17, 2009) - Pacific Lottery Corporation (the "Corporation") (TSX VENTURE:LUK) (FRANKFURT:PCF) is pleased to provide the following corporate update. The Corporation advises that 3rd quarter revenue results indicate a fourth consecutive quarter of strong growth following last years, October 2008 launch. Preliminary results show that 3rd Quarter lottery turnover grew to (USD adjusted) $ 757,000, a 26 % increase over the previous 2nd Quarter's impressive 30% growth results. As well, the Corporation is pleased to advise that early 4th Quarter lottery turnover results indicate continued sustained expansion with an additional 16% month over month increase for the month just ended in October 2009.

The Corporation's ongoing belt tightening objective in these turbulent times has also progressed and is therefore pleased to advise that the trend of significantly narrowing its monthly operating losses has continued. A 3rd Quarter 2009 G & A costs savings analysis estimates that the Corporation realized an approximate 35% cost reduction over the 2008 average quarterly G & A costs. Further, the Corporation believes that the launch of the recently approved mobile phone lottery services in Vietnam in the very near future, which is expected to greatly expand lottery ticket distribution in conjunction with increased public awareness derived from the new daily, live TV draw show, should quickly lead to the replacement of monthly operating deficits with quarterly operational profits within the early part of 2010.

In other developments, the Corporation is pleased to announce it has agreed to a strategic alliance with bet365, one of the worlds largest Sports betting companies with gross annual amounts wagered of over US$ 5.1 billion. bet365 is licensed and regulated in the United Kingdom and according to the Sunday Times is the UK's 7th largest private corporation. They service over 3 million customers, in 17 languages, in 200 countries worldwide. The Corporation and bet365 look forward to working cooperatively together on new, exciting and mutually beneficial opportunities.

About Pacific Lottery Corporation:

Pacific Lottery Corporation is engaged in the provision of comprehensive computerize on-line and mobile phone lottery technology and related professional services for delivery to a growing audience of international customers. Today, the Corporation exclusively leads the technical support activities for the only authorised State run on-line lottery program 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.

Neither the Deutche Borse and or the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy and accuracy of this release"

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