Betty Boop Lottery Games Hit the Sales Leader Board in First Three Lottery Jurisdictions

    HARTFORD, Conn.--April 2, 2001--Betty Boop(TM), the classic cartoon character-turned-pop culture icon, has become one of America's best-selling licensed lottery games, MDI Entertainment, Inc. announced today. Results of sales from three U.S. lotteries indicate that the brand has done an excellent job of attracting lottery consumers in New Jersey, Pennsylvania and Wisconsin.
    "Betty Boop is clearly a licensed property that is resonating with lottery players," said Steve Saferin, MDI's President and CEO, "and making the lotteries' Top Ten sales lists over the past year as a result."
    Betty Boop lottery promotions are offered exclusively through MDI under a licensing agreement with King Features Syndicate, Inc. Ita Golzman, Vice President, North American Licensing for King Features says of the property, "Betty Boop is unique in that she is one of very few female licensing properties, and she appeals to a very broad demographic group, from tweens to Gen X-ers, boomers to seniors."
    Saferin said high volume ticket sales prove the point. "These sales results reaffirm the power of the Betty Boop brand in general, and specifically in the gaming category," Saferin added. "With minimal advertising, the market has discovered these games and is enjoying them. We have every reason to expect similar strong results in every state."
    In New Jersey, $2 Betty Boop ticket sales have run 27 percent ahead of the lottery's average game sales at that price point. The New Jersey Lottery was the first to offer a $2 Betty ticket with MDI's second chance bonus feature. In addition to a $30,000 top cash prize, players could send in non-winning Betty Boop tickets for a chance to win Boop collectible gift packs, high fashion leather jackets and a genuine Betty Boop juke box.
    Sales of the Pennsylvania Lottery's $2 Betty Boop ticket have been nothing short of phenomenal. Measured after five weeks of sales, Betty Boop ranked second among seventeen similarly priced games launched in the Keystone State since January 2000. Average weekly sales of Betty Boop are 31 percent higher than the average of 41 instant $2 games launched in Pennsylvania since 1998. Pennsylvania's game has a $20,000 top prize and includes a second chance bonus for Boop merchandise prizes.
    Betty Boop's debut as a lottery theme came in Wisconsin in January 2000, with the launch of a colorful $1 multi-scene Betty Boop ticket. In just seven weeks the Betty Boop tickets sold out. During that short life cycle Boop tickets sold as much as 63 percent above the Wisconsin Lottery's average weekly $1 ticket sales. Overall, Betty Boop ranked sixth out of 45 Wisconsin Lottery $1 games introduced between July 1999 and November 2000, with sales 29 percent higher than the average of all $1 games launched during that time frame.
    MDI has initiated a direct mail campaign to share the results of the sales findings with lottery decision-makers throughout North America. "Lotteries introduce 40 to 60 new instant lottery game themes each year, many of them with no sales history," Saferin said, adding "With her cheery and bright imagery, and a compelling collection of popular merchandise prizes, Betty Boop has passed the test of lottery marketability with flying colors."
    "Betty's career has taken off like a rocket, and shows no signs of slowing down," said King Features'Golzman. "Every available category has been licensed in the United States, including apparel and accessories, collectibles and crystal, dolls (porcelain, ceramic, resin, vinyl, PVC, stuffed, and beanbag), linens and domestics, tabletop, fine jewelry, lottery tickets and slot machines. New licensing partners include Celebrity Cellars with vintage wines, Enesco with Christmas ornaments and ceramic giftware, and True Confections for chocolate bars."
    In the gaming category, in addition to MDI's license for lottery tickets, Bally Gaming & Systems(R), a division of Alliance Gaming Corporation, built its Thrillions(R) multi-area progressive slot machine network around the Betty Boop brand.
    Popular Lottery scratch games and promotions designed around Betty Boop, Wheel of Fortune(R), Elvis Presley(R) Harley-Davidson(R) and more than 30 licensed properties 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- and third-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.