Press Release

Pollard Banknote Awarded Contract By The Iowa Lottery

WINNIPEG, Manitoba, January 29, 2013 /CNW/ – Pollard Banknote Limited (TSX: PBL) (Pollard Banknote) is pleased to announce that it has recently been awarded a two-year contract by the Iowa Lottery for instant ticket printing and related services. This agreement commenced on January 1, 2013, and includes the option of four additional one-year extensions. As well, the Iowa Lottery has chosen to extend its contract for the production of pull-tab tickets with American Games, a Pollard Banknote company, for an additional year.

Working closely with the Iowa Lottery since 1993, Pollard Banknote has helped boost the Lottery’s instant ticket sales by 77% over the past six years. The recent success of games such as Aces High and Holiday Countdown, featuring Pollard Banknote’s patented Scratch FX® process, a high value, eyecatching look that replicates the appearance of either foil or holographic foil, has had a considerable impact on the Iowa Lottery’s sales. Overall instant ticket sales have increased more than 14%, from $165.3 million in 2011 to $188.8 million in 2012.

The unwavering success of this long-standing partnership is further demonstrated by two of the Iowa Lottery’s top-performing products – Crossword and Bingo – both of which are produced using Pollard Banknote’s proven complex game programming expertise and translucent marking system. In 2012, Crossword and Bingo games accounted for a combined 34% of the Iowa Lottery’s instant ticket sales.“Pollard Banknote is eager to take this opportunity to expand our role with the Iowa Lottery,” said Doug Pollard, Co-Chief Executive Officer, Pollard Banknote. “Given Iowa’s remarkable sales growth in recent years introducing products like our patented Scratch FX®, we are confident that our innovations –including the upcoming launch of the Pollard PlayBook® – will continue to be a tool used to reach new players in the Iowa market.”

“We have forged a strong connection with Pollard Banknote through the years, both in our instantscratch and pull-tab ticket businesses,” said Terry Rich, CEO of the Iowa Lottery Authority. ”Pollard’s support and innovation have helped us achieve back-to-back record years of scratch ticket sales and we are pleased we can continue this relationship with the goal of providing more revenues for the citizens of Iowa.”

Since 1985, the Iowa Lottery has raised more than $1.4 billion for state programs that benefit all Iowans.

Today, lottery proceeds in Iowa have three main purposes: They provide support for veterans, help for a variety of significant projects through the state General Fund, and backing for the Vision Iowa program, which was implemented to create tourism destinations and community attractions in the state and build and repair schools.

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