Press Release

Pollard Banknote and Michigan Lottery Partner For Success With Cashword WebPlay™ Interactive Game

TICKET NAMED BEST NEW INSTANT GAME AT THE 2012 WORLD LOTTERY SUMMIT!

WINNIPEG, Manitoba, September 12, 2012 /CNW/ – Pollard Banknote Limited (TSX: PBL) (Pollard Banknote) is excited to announce the success of the Michigan Lottery’s Cashword Instant ticket and WebPlay™ program, starring the Michigan Lottery Cashword app powered by Pollard Banknote. The award was presented at the World Lottery Summit in Montréal this week.

“Pollard Banknote’s WebPlay™ program enhances the value of an instant ticket by providing free extended play on the lottery’s website or with a stand-alone smartphone app”, said Co-Chief Executive Officer, Doug Pollard. “We have focused a lot of energy and attention toward developing technologies that will attract younger players and drive sales for our customers. The Michigan Lottery has been a wonderful partner and an active supporter of our technology as it stimulates sales, provides added entertainment value, and most importantly, captures the attention of the 18-25 year old market. The fact there were one million Cashword interactive games played within the first six months of the program is a testament to its success.”

The Michigan Lottery’s Cashword WebPlay™ program features a custom app developed by Pollard Banknote that utilizes a quick response (QR) code to download the Michigan Cashword Lottery app. Once downloaded, players can continue to play their retailer-purchased instant ticket in an online format for a second chance to win instant ticket coupons or points for redemption on the Michigan Lottery’s Player’s Club. Both the app and the web-based version of the game can also be played for fun without the purchase of a Cashword ticket.

Sales data since the February 2012 introduction of the Michigan Lottery Cashword app shows the WebPlay™ program was responsible for a 52% increase in average weekly sales of the already popular Cashword category as average weekly sales jumped from a total of $2.3 million to $3.5 million.

“Research shows the ability to play the game on a personal computer or on-the-go with a smartphone has successfully engaged the coveted 18-25 demographic, of which 20% play the app for fun at least once a day after download”, stated Tom Weber, Deputy Commissioner of Marketing with the Michigan Lottery. “Fifty-five percent of players who played the app for fun were influenced to purchase a ticket in order to play the app for prizes, while 75% of 18-25 year-old segment said they were more likely to purchase Cashword tickets after playing the Michigan Lottery Cashword app. The recent award for our Cashword program at the World Lottery Summit is further recognition of our work as an industry innovator and a strong endorsement of the Lottery’s ability to create compelling products for the future, including extending lottery games into the mobile space while still supporting our retail network”, said Weber.

With the mandate to support education in the state, the Michigan Lottery generated over $727 million for Michigan’s educational system in 2011. Since 1972, the Lottery’s total contributions to schooling have grown to exceed $16 billion.

About Pollard Banknote

Pollard Banknote is a leading lottery partner to more than 60 lotteries worldwide, providing high quality instant ticket products, licensed games, Schafer Systems and Fastrak retail merchandising solutions, and a full suite of digital offerings, ranging from world-class mkodo game apps to comprehensive player engagement and iLottery solutions, including strategic marketing and management services. The company is a proven innovator and has decades of experience helping lotteries to maximize player engagement, sales, and proceeds for good causes. Pollard Banknote also provides pull-tab tickets, bingo paper, and its Diamond Game and Oasis-branded electronic ticket machines to charitable and other gaming markets in North America. Established in 1907, Pollard Banknote is owned approximately 67.5% by the Pollard family and 32.5% by public shareholders, and is publicly traded on the TSX (PBL). 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. -30-

For More Information

Doug Pollard
Co-Chief Executive Officer
dpollard@pbl.ca

John Pollard
Co-Chief Executive Officer
jpollard@pbl.ca

Rob Rose
Chief Financial Officer
rrose@pbl.ca