Pacific Lottery Corporation

Pacific Lottery Corporation

September 28, 2009 21:30 ET

Pacific Lottery Receives Full Vietnamese Government Approval for Its Mobile Phone Lottery Technology

CALGARY, ALBERTA--(Marketwire - Sept. 28, 2009) - Pacific Lottery Corporation ("PLC") (TSX VENTURE:LUK) (FRANKFURT:PCF) is pleased to announce that the Government of Vietnam has issued all final approvals required for the introduction of mobile phone purchasing of authorised lottery games, exclusively using the Corporation's proprietary Mobile Phone Lottery Technology Platform ("MobiLot"). The receipt of the Ministry of Finance's approval was the last regulatory hurdle and clears the way for the immediate commercial use of the Corporation's new MobiLot technology by the state run on-line Lottery program in Vietnam.

This new mobile phone application developed and solely controlled by the Corporation, will allow the Vietnamese general public direct access to purchasing lottery products from the state run on-line lottery program via the convenience of their individual mobile phones. The approval of mobile phone purchases of lottery products is a Vietnamese first and also heralds a major global shift in the current delivery methods used by national lotteries. No longer will Vietnamese players be limited to purchasing their lottery products only from land based retailers using traditional lottery terminal distribution channels. This exclusive approval for the Corporation is a result of the government's appreciation and acceptance of PLC's proven concept in connection with its previously launched retailer based on-line lottery program in October 2008.

PLC will immediately begin the implementation and integration process with all Vietnamese state owned mobile phone carriers for this new, exciting and cutting edge service, which is expected to be launched within the next 100 days. Recent estimates suggest that the country has up to 40 million registered mobile phones users and most estimates expect this market to grow to 55 million by next year. This high mobile phone adoption rate supports the Corporation's expectation that this new mobile phone distribution channel will result in significant expansion of the lottery player's accessibility to the state run on-line lottery program, thereby exponentially increasing its sales power and accompanying lottery sales performance.

This major milestone development within the global lottery industry helps thrust PLC to the forefront of the next generation of technological advances. As mobile phone business applications become more generally accepted and widely used, the Corporation believes this historic application for general public purchasing of lottery products directly via their mobile devices, will reverberate throughout the global lottery industry.

PLC has agreed to supply its MobiLot technology to the Vietnamese lottery authority under the same terms and conditions of its existing and exclusive ten (10) year on-line lottery technology supply and services Agreement, which runs until 2018. The Corporation will receive gross compensation of 8 % on all lottery sales processed through this new mobile phone application. The current Agreement also covers all necessary operational details required for the seamless integration and installation of PLC's MobiLot technology within its existing proprietary Optimal Lottery Integration System ("OLIS"), which exclusively powers the Vietnamese On-line lottery program. Furthermore, the Corporation has all necessary resources required to complete the full integration process of this landmark event in the Corporation's development.

Vietnam is a country of approximately 90 million people with a fast growing adoption rate for new mobile phone technologies. The national lottery market in Vietnam has annual revenues of over 1.3 Billion US-Dollars. The unauthorised So De market has been estimated to have a turnover of approximately 3.5 Billion US-Dollars, thereby establishing the total turnover potential of the Vietnamese lottery market at almost 5.0 Billion US-Dollars annually. Recently, the Corporation was advised by one of the leading Vietnamese mobile phone carriers that its largest value added service, worth approximately 200,000 US-Dollars per day in revenues, is generated by customers paying a small service fee for the automatic downloading to their mobile devices of the daily results of the Hanoi Lottery draw.

With the foregoing in mind and in conjunction with the daily live, prime time broadcasting of the lottery draws on Hanoi TV, one of the top rated TV stations watched nationally, throughout Vietnam, both the Corporation and the Government lottery authorities expect the use of direct mobile phone lottery purchasing to significantly increase the online lottery's market share by providing Vietnamese lottery players with greater ease of access and convenience for their everyday lottery purchases.

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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