Totalizator Sportowy (Polish National Lottery) Achieves Record Annual Sales

WINNIPEG, Feb. 3, 2014 /CNW/ - Pollard Banknote Limited (TSX: PBL) ("Pollard Banknote") is proud to be a major contributing partner in the sales success enjoyed by Totalizator Sportowy (Polish National Lottery). The Lottery announced a significant increase in instant sales in 2013—31.9% over 2012 sales. This annual sales record coincides with the Lottery extending its contract with Pollard Banknote. This extension, the first of five possible 12-month extensions, has an estimated value of approximately $6.9 million USD.

Pollard Banknote first collaborated with Totalizator Sportowy as its primary instant ticket supplier in 2007. Since then, the Lottery has experienced consistent year-over-year increases in instant ticket sales and achieved a staggering 668% total growth over this period.

A significant driver of 2013 sales was the launch of the Lottery's first 10 złoty (approximately $3.30 USD) game. The 10 złoty MAXI CA$H is an extension of the Lottery's popular 5 złoty CA$H category. The game, available in three colors, featured an emphasis on chatter prizes—prizes high enough that people will share their winning experiences with others. Launched on September 24, 2013, MAXI CA$H was an immediate hit with players, representing a remarkable 49% of the Lottery's instant ticket sales for that day. Throughout October, the game maintained a 23% share of the Lottery's instant sales. More importantly, this game did not cannibalize the sales of the 5 złoty category.

An increase in the number of 5 złoty games offered and a very successful holiday ticket also contributed to the Lottery's impressive yearly sales. The holiday ticket, Kalendarz Adwentowy, featured Pollard Banknote's patented Scratch FX®—a printing feature which adds sparkle and shine to the display and scratch-off graphics of instant tickets for a visual appeal and brilliance that exceeds that of foil, holographic foil and metallic inks.

"Pollard Banknote congratulates Totalizator Sportowy on another record-setting year of instant ticket sales," said Doug Pollard, Co-Chief Executive Officer. "The strong showing of the Lottery's 2013 instant game portfolio is indicative of the momentum we have built with this client through a collaborative partnership and a focus on sales growth. We are confident that we can help the Lottery continue this trend of year-over-year growth in the instant ticket category."

"This year we worked closely with Pollard Banknote to expand our instant game selection and offer games that appeal to a broad spectrum of players. This strategy is clearly paying off for us," stated Kordian Zieliński, Instant Manager for Totalizator Sportowy. He added, "Pollard Banknote's cutting edge products, like Scratch FX®, are gaining popularity in our market and through the extended contract we can keep offering innovative games to our players."

Totalizator Sportowy Spólka z.o.o. was established as Poland's national lottery in 1956 and began offering instant tickets in 1999. Headquartered in Warsaw, it is a limited liability company that is wholly owned by the Treasury of Poland and by law holds a lottery monopoly in the Republic. Totalizator Sportowy supports sport, national culture, and responsible gaming initiatives in Poland, with the allocated causes and the state budget receiving 1.57 billion złoty in 2012.

About Pollard Banknote Limited

Pollard Banknote Limited is one of the world's leading full-service lottery vendors and is a major supplier to North America's charitable gaming industry. The company manufactures instant lottery tickets and provides related programming, design, and marketing support. As well, Pollard Banknote manufactures pull-tab tickets and bingo paper, and supplies lottery management services (including warehousing and distribution). Established in 1907, Pollard Banknote is owned approximately 73.5% by the Pollard family and 26.5% by public shareholders and currently serves more than 50 lotteries worldwide, including some of the largest and most respected lotteries in the United States, Canada, Europe, Asia, and Central and South America. For more information, please visit our website at www.pollardbanknote.com.

Forward-looking Statements

Certain statements in this press release may constitute "forward-looking" statements and information, which involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. When used in this document, such statements include such words as "may," "will," "expect," "believe," "plan," and other similar terminology. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this document. There should not be an expectation that such information will in all circumstances be updated, supplemented, or revised whether as a result of new information, changing circumstances, future events, or otherwise.

SOURCE: Pollard Banknote Limited

Doug Pollard
Co-Chief Executive Officer
Telephone: [phone]
E-mail: [email protected]

John Pollard
Co-Chief Executive Officer 
Telephone: [phone] 
E-mail: [email protected]

Rob Rose
Chief Financial Officer
Telephone: [phone]
E-mail: [email protected]