Jan 12, 2006 08:21 ET

New Mexico Gaming Control Board Awards Contract to Scientific Games

Eight Year Pact Valued at $7.1 Million

NEW YORK, Jan. 12 /PRNewswire-FirstCall/ -- Scientific Games (NASDAQ:SGMS) signed an eight year contract with the New Mexico Gaming Control Board for the AEGIS-Video(TM) system to monitor and control the state's gaming machines. The contract commenced on December 28, 2005 and is valued at approximately $7.1 million.


Scientific Games will install the AEGIS-Video(TM) system and provide ongoing maintenance support for a hybrid network which includes 5 racinos and 60-plus non-profit veteran and fraternal organizations. The AEGIS-Video system will support two communication protocols including the industry standard SAS 6.01 (Slot Account System) protocol and SGI's F-3 protocol which allow the existing gaming machines to communicate to the new system.


"We appreciate being chosen by the New Mexico Gaming Control Board for this important contract in a growing market," said Brennen Lawrence, Vice President and General Manager of Video Gaming Systems of Scientific Games. "We continue to provide valuable enhancements to our systems' technologies with AEGIS-Video(TM) to embrace industry standards and protocols and meet our customers' needs."


"The Gaming Control Board has been extremely pleased with the performance of the AEGIS-Video(TM) system during the pilot," said Interim Executive Director India Hatch of the New Mexico Gaming Control Board. "Upgrading to AEGIS Video allows the State of New Mexico the ability to jurisdictionally control the security and integrity of the machines and the facilities, while allowing new SAS based gaming machines to come to the market and add significant growth to revenue."


The New Mexico VLT network consists of more than 3,000 machines at the state's five racetracks and about 60 non-profits, mostly veterans and fraternal organizations. In fiscal 2005 the total net win from the gaming machines was $186.6 million, which played a major role in adding $34.9 million to the purses offered at the state's tracks.


About Scientific Games


Scientific Games Corporation is the leading integrated supplier of instant tickets, systems and services to lotteries, and the leading supplier of wagering systems and services to pari-mutuel operators. It is also a licensed pari-mutuel gaming operator in Connecticut and the Netherlands and is a leading supplier of prepaid phone cards to telephone companies. Scientific Games' customers are in the United States and more than 60 other countries. For more information about Scientific Games, please visit our web site at http://www.scientificgames.com/.


Forward-Looking Statements


In this press release we make "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as "may," "will," "estimate," "intend," "continue," "believe," "expect" or "anticipate," or the negatives thereof, variations thereon or similar terminology.


These forward-looking statements generally relate to plans and objectives for future operations and are based upon management's reasonable estimates of future results or trends. Although we believe that the plans and objectives reflected in or suggested by such forward-looking statements are reasonable, such plans or objectives may not be achieved.


Actual results may differ from projected results due, but not limited, to unforeseen developments, including developments relating to the following:


* economic, competitive, demographic, business and other conditions in our
local and regional markets;
* changes or developments in the laws, regulations or taxes in the gaming
and lottery industries;
* actions taken or omitted to be taken by third parties, including
customers, suppliers, competitors, members and shareholders, as well as
legislative, regulatory, judicial and other governmental authorities;
* changes in business strategy, capital improvements, development plans,
including those due to environmental remediation concerns, or changes in
personnel or their compensation, including federal, state and local
minimum wage requirements;
* the availability and adequacy of our cash flow to satisfy our
obligations, including our debt service obligations and our need for
additional funds required to support capital improvements, development
and acquisitions;
* an inability to renew or early termination of our contracts;
* an inability to engage in future acquisitions;
* the loss of any license or permit, including the failure to obtain an
unconditional renewal of a required gaming license on a timely basis;
and
* resolution of any pending or future litigation in a manner adverse to
us.


Actual future results may be materially different from what we expect. We will not update forward-looking statements even though our situation may change in the future.


Forward-looking statements speak only as of the date they are made, and except for our ongoing obligations under the U.S. federal securities laws, we undertake no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.


Company Contact:
Investor Relations
Scientific Games Corporation
212-754-2233

Source: Scientific Games Corporation

CONTACT: Scientific Games Corporation Investor Relations,
+1-212-754-2233


Web site: http://www.scientificgames.com/


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