Press Release

Pollard Banknote Awarded Contract By The Idaho Lottery

WINNIPEG, Manitoba, July 9, 2013 /CNW/ – Pollard Banknote Limited (TSX: PBL) (“Pollard Banknote”) is pleased to announce that it has been awarded a new two-year contract by the Idaho Lottery as a secondary printer of instant scratch tickets. The contract, which commenced on May 7, 2013, includes the option for three additional two-year extensions and provides Pollard Banknote the opportunity to print up to 29% of the Idaho Lottery’s anticipated retail sales on an annual basis.

This new contract award will allow the Idaho Lottery to take advantage of Pollard Banknote’s proven expertise in developing and managing our clients’ extended play category. Pollard Banknote’s industry-leading extended play games not only feature the Company’s best-selling translucent marking system, but also our ability to create game concepts and designs with unequalled playability and to make sales-driving prize structure recommendations. Our extended play instant tickets have proven successful in generating millions of dollars in incremental retail sales for lotteries in the U.S. and throughout the world.

The Idaho Lottery will also have the opportunity to benefit from revenue-boosting products like Pollard Banknote’s patented Scratch FX®, Pollard PlayBook®, and innovative interactive offerings. Scratch FX® replicates the sparkle and shine of either foil or holographic foil on an instant ticket using recyclable paper stock, and creates an eye-catching look that will achieve maximum impact at retail—appealing to impulse buyers and broadening the player base. The added play value of the Pollard PlayBook® brings multiple games together in a unique booklet format, enabling players to try a number of different games at once. In addition, the use of Pollard Banknote’s mobile apps add interest to instant tickets with dynamic, interactive online play which has proven extremely successful in engaging the important 18-24 year-old demographic.

“Pollard Banknote is very pleased to be awarded this contract by the Idaho Lottery and is committed to establishing a collaborative and successful working relationship,” said Doug Pollard, Co-Chief Executive Officer, Pollard Banknote. “We are eager to work with the Lottery to identify opportunities to drive growth and revenue through the use of our innovative print and interactive products.”

“Pollard Banknote has a long history in the lottery industry of providing premium quality entertainment products for lotteries and their players,” said Jeff Anderson, Idaho Lottery Director. “We are pleased to now have them as an instant ticket supplier for the Idaho Lottery and look forward to working collaboratively to provide our players with dynamic and innovative games that will enhance the player experience and our annual dividends to our beneficiaries in Idaho.”

The mission of the Idaho Lottery is to responsibly provide entertaining games with a high degree of integrity to maximize the dividends for public schools and buildings. Historically, Lottery dividends have been shared by Idaho’s Public School Building Account and the Permanent Building Fund. Since the Lottery’s inception in 1989, it has sold over $2.3 billion in products, awarded nearly $1.3 billion in prizes to players, returned more than $136.5 million in retail commissions, and distributed more than $552.3 million in Lottery dividends to state public schools and buildings.

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 break-open 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.

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FOR MORE INFORMATION CONTACT:

Doug Pollard
Co-Chief Executive Officer         Telephone: (204) 474-2323
E-mail: dpollard@pbl.ca

John Pollard
Co-Chief Executive Officer         Telephone: (204) 474-2323
E-mail: jpollard@pbl.ca

Rob Rose
Chief Financial Officer         Telephone: (204) 474-2323
E-mail: rrose@pbl.ca