Pacific Lottery Corporation

Pacific Lottery Corporation

October 08, 2010 18:19 ET

Pacific Lottery Corporation Update

CALGARY, ALBERTA--(Marketwire - Oct. 8, 2010) - Pacific Lottery Corporation (the "Corporation") (TSX VENTURE:LUK) (FRANKFURT:PCF) is pleased to advise that the performance of its lottery technology has continue to perform beyond initial objectives and have experienced further revenue enhancement beyond the recently released 2nd quarter results which itself demonstrated continued progress and expanded sales growth. These 2nd quarter results showed the Corporations revenues for the 6 months period ending June 30th grew to $ 130,878, an increase of 51% over the same period last year. Additional, the Corporation further advises that it has continued its program of lowering its cost profile in these difficult economic times and reports that it continued through the first half of the year to significantly narrow its net operating losses for this period to $ 384, 884. The Corporation will continue the ongoing application of these sound fiscal principles while encouraging continued revenue augmentation in order to assist in its objective to achieve net positive cash flows in the near term.

In other developments, the implementation process for the launching of the new mobile phone lottery services in Vietnam has unfortunately been placed in doubt due to the Government of Vietnam's subsequent requests for additional clarification to provide certain technical parameters of the proposed technology prior to implementation. Despite several attempts, the Corporation continues to be unable to provide sufficient technical parameters to satisfy the officials. At this time there can be no assurance that the Corporation will be able to overcome these issues.

The Corporation also advises that it's wholly owned Barbados subsidiary Emerging Markets Solutions International ("EMSI") on September 13th 2010 successfully completed an offering for CAN $600,000 worth of non voting preferred share priced at CAN $ 1.00 per share, with no warrants attached. Further, the preferred shares carry a cumulative 5 % per annum cash dividend rate along with certain dividend and distribution rights should the Corporation decide in the future to issue any. Finally, $400,000 of the total amount of the offered preferred shares were subscribed for by Oceanic Greystone a company controlled by an insider Mr. Richard W. DeVries, Chairman of the Board of Pacific Lottery Corporation. Mr. Devries was joined by two consultants to the Corporation who also subscribed for a combined $ 133,333 of the offering. The proceeds of the offering will be used for general working capital purposes.

As well, recently the trading of the Corporation's shares were halted by the TSX Venture Exchange Inc. pending clarification of certain corporate affairs. The Corporation apologises for any inconvenience or concerns this action may have caused and continues working diligently to clarify matters with the TSX Venture Exchange Inc. in order to resume normal trading activities at the earliest possible opportunity.

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.

For further information, please visit our website at:

SEC 12g exemption 82-4832

Cautionary Statements

Certain statements contained in this news release constitute "forward-looking statements" as such term is used in applicable Canadian laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. In particular, any statements concerning the timing, content, future success and completion of the mobile phone lottery services in Vietnam or the ability to reinstate the trading of the shares of the Corporation in the TSX Venture Exchange Inc. described in this news release should be viewed as forward-looking statements to the extent that they involve estimates thereof. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might' or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as "forward-looking statements". Such forward looking statements, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the uncertainty related to negotiating with a foreign government or with regulatory bodies. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release.

Forward-looking statements are made based on management's belief's, assumptions, estimates and opinions on the date the statements are made and the Corporation undertakes not obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

Neither the TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has in any way approved or disapproved of the contents of this press release.

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