Harley-Davidson Extends MDI Entertainment License for Lotteries' Hottest Brand

    HARTFORD, Conn.--May 1, 2001--MDI Entertainment, Inc. (NASDAQ SC:LTRY) announced today that it has been granted a three-year renewal of its exclusive lottery licensing agreement with Harley-Davidson(R) Motor Company , continuing the partnership that has launched more than 30 Harley-Davidson lottery game promotions throughout North America since 1998, making it the most successful lottery licensing/merchandising program ever.
    Term of the extension is through December 31, 2003 enabling lotteries to plan promotions around the timing of Harley-Davidson's(R) 100th Anniversary Year in 2003.
    "We are gratified with this vote of confidence from Harley-Davidson(R) and look forward to creating even more excitement and entertainment for lottery players who are passionate about the brand," said Steve Saferin, President and CEO of MDI. "The appeal of this brand is universal. Harley-Davidson(R) is more than a motorcycle, it is a lifestyle."
    The two companies entered into their initial licensing agreement in 1998. Since that time, Harley-Davidson(R) has become the most popular licensed lottery brand in the US and Canada, generating more than $200 million in lottery revenue from more than 100 million lottery tickets. With eight lotteries having recently launched games or in the final planning stages, MDI will set a single-year record for Harley-Davidson(R) instant tickets this year.
    Recent launches have included both the Florida and the California Lotteries. Pennsylvania Lottery is expected to become the first lottery to launch three Harley-Davidson(R) promotions through MDI with a new instant game coming out this summer. Also during 2001 the New Mexico and Michigan Lotteries are expected to launch Harley-Davidson(R) instant games, representing the first MDI contracts in those jurisdictions.
    Through its exclusive sole source license, MDI creates instant lottery games and terminal-generated lottery promotions featuring the extraordinarily popular Harley(R) logos and motorcycle images. All Harley-Davidson(R) lottery games and promotions offer world-renowned Harley-Davidson(R) motorcycles and highly sought-after logo merchandise supplied by other official Harley-Davidson(R) licensees.
    Since the inception of the promotion, more than 200 Harley-Davidson(R) Sportster motorcycles have been awarded to lottery winners, and second chance winners have received over 200,000 other officially licensed Harley-Davidson(R) merchandise prizes. Each motorcycle prize includes all taxes and associated fees. MDI manages fulfillment of all prizes for the lottery promotions and in many cases provides the resources necessary to conduct the bonus drawings, as a service to its lottery customers. The company also provides a fully staffed, toll-free winner service line.
    MDI creates and markets Lottery scratch games and "turn-key" promotions designed around Harley-Davidson(R), Wheel of Fortune(R), Jeopardy!(R) and more than 30 licensed properties. These popular brands and 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- 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 (AMEX:SGM), 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. that 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 Wheel of Fortune(R), Jeopardy!(R), Elvis Presley(R), Betty Boop(TM), Twilight Zone(TM), Louisville Slugger(R), TNN(R), CMT(R), Hummer(R), Ray Charles(R), Pink Panther(TM), The Outer Limits(TM), Heroes of Space(TM), Miss Cleo(TM), Michael Buffer's Let's Get Ready To Rumble(R), Dick Clark's American Bandstand(R), Times Square 2000(TM), SPAM(R), Greatest Sports Legends(R), Emmett Kelly Jr.(R), The Hollywood Sign(TM) and Walk of Fame(TM), 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.