MDI Welcomes Another New Customer Michigan Lottery Roars in On a Harley

    HARTFORD, Conn.--March 29, 2001--The Michigan Lottery will thunder into spring on a Harley-Davidson(R) motorcycle promotion, MDI Entertainment, Inc. (NASDAQ SC: LTRY) announced today. When the game launches in April, it will be the 28th Harley-Davidson(R) lottery promotion conducted through the company in North America, and Michigan's first MDI licensed lottery game.
    Nine legendary Harley-Davidson(R) Sportster 1200 Custom(TM) motorcycles will be won by lucky Michigan lottery players. In addition, more than 2000 prize packs featuring Harley-Davidson(R) official logo merchandise items will go to lucky winners.
    "The Michigan Lottery is very excited about the new Harley-Davidson(R) instant game," Michigan Lottery Commissioner Don Gilmer said. "We have never offered an instant game quite like this one. We expect it will attract, not only the players who already enjoy our instant game tickets, but new players as well. Players can win both cash and merchandise prizes with this game, making it twice as exciting!"
    MDI President and CEO Steve Saferin thanked the Michigan Lottery team for working so hard on the agreement. "Harley-Davidson(R) motorcycles and merchandise enjoy enormous consumer popularity, and the Michigan Lottery is harnessing that marketing power to increase Lottery revenue," he said. "We look forward to creating future promotions together," Mr. Saferin added.
    The Michigan Harley-Davidson(R) ticket will be priced at $3, and will be printed by Pollard Banknote. The Lottery will generate approximately $13.5 million in revenue.
    MDI owns the exclusive license to develop lottery games and promotions based on the incomparable Harley-Davidson(R) motorcycle brand. The Michigan Lottery is one of at least seven US lotteries scheduled to introduce Harley-Davidson(R) scratch games during calendar 2001, according to Mr. Saferin. The Florida Lottery generated record sales when it introduced its first Harley-Davidson(R) game in February.
    "We estimate that more Harley-Davidson(R) lottery tickets will be printed in 2001 than in any previous year of MDI's license with the Harley-Davidson(R) Motor Company," Mr. Saferin said. "Initial order quantities for Harley games planned in this calendar year total more than 45 million tickets," he added.
    Popular Lottery scratch games and "turn-key" promotions designed around Wheel of Fortune(R), Jeopardy!(R) Elvis Presley(R), Harley-Davidson(R) and many other brands and cultural icons are offered to government sponsored lotteries through MDI's exclusive licensing programs. Motorcycles, dream trips, game show auditions, merchandise packages and other exotic prize giveaways can be customized for a state, region or time of year, adding value to the games. MDI revolutionized the lottery industry with its introduction of second-chance merchandise prizes.
    MDI's wide array of services include game and ticket design, merchandise prize fulfillment, management of second-chance draws, a fully-staffed customer service line, coordination of winner travel and accommodations, advertising and marketing support, consumer research and Internet marketing and advertising. . MDI has entered into a strategic business agreement with Scientific Games International, a wholly owned subsidiary of Autotote Corporation (AMEX: TTE). Scientific Games is one of the world's largest suppliers of lottery games. And MDI also has joined forces with eLOT, Inc. , which provides Internet-based services to Lotteries. Both partners have acquired interests in MDI.
    MDI's current lottery promotions include scratch games featuring other properties such as Harley-Davidson(R), Wheel of Fortune(R), Jeopardy!(R), Elvis Presley(R) and Graceland(R), Betty Boop(TM), Twilight Zone(TM), Louisville Slugger(R), TNN(R), CMT(R), Hummer(R), Ray Charles(R), The Hollywood Sign(TM) and Hollywood Walk of Fame(TM), Emmett Kelly, Jr.(R), Pink Panther(TM), The Outer Limits(TM), Heroes of Space(TM), Michael Buffer's Let's Get Ready To Rumble(R), Dick Clark's American Bandstand(R), Times Square 2002(TM), SPAM(R) and auto race drivers Dale Earnhardt(R), Dale Earnhardt, Jr.(R), Mark Martin, Matt Kenseth, Jeff Burton and Bill Elliott.

    The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by MDI) contains statements that are forward-looking, such as statements relating to the future anticipated direction of the lottery industry, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales and potential contracts. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of MDI. These risks and uncertainties include, but are not limited to, those relating to development and expansion activities, dependence on existing management, financing activities, domestic and global economic conditions, changes in federal or state tax laws and market competition factors.