Press Release

Pollard Banknote’s Exclusive PlayBook® One of Iowa Lottery’s Most Successful Instant Scratch Games

WINNIPEG, Manitoba, July 2, 2013 /CNW/ – Pollard Banknote Limited (TSX: PBL) (“Pollard Banknote”) is proud to share the success enjoyed by the Iowa Lottery’s launch of Pollard Banknote’s exclusive PlayBook® instant ticket product innovation. Launched in January 2013, the Iowa Lottery’s Game Book was its first-ever Pollard PlayBook®, and is heralded as one of the most successful instant scratch games in the Lottery’s 27-year history.

“We ordered what normally would have been a two-year supply of tickets in a $20 game and the Game Book sold out in just four months,” said Terry Rich, Chief Executive Officer, Iowa Lottery. “Our customers—and retailers—really responded to the concept of multiple games in one product.”

The strength of the Game Book’s performance in Iowa was obvious from the beginning—more than 95% of the Lottery’s retailers that sell scratch games carried the Game Book. The product’s popularity led to an increase of more than 25% in retailers carrying a $20 game. Another telling figure: More than half the Lottery’s retailers who had previously sold scratch tickets exclusively through instant ticket vending machines, added the Game Book as a product sold in a dispenser for the first time.

The new $20 PlayBook®, Blazing Hot 7s, launched June 17, 2013, with much anticipation from the Lottery. “We are delighted with how well the Game Book PlayBook® was received by Iowa Lottery’s players. Iowa’s exceptional sales of our innovative play style is just one success story of many,” stated Doug Pollard, Co-Chief Executive Officer, Pollard Banknote. “Nearly 30 PlayBook® games have been launched in eight lotteries in the United States—all with outstanding results. An additional five lotteries worldwide have also implemented PlayBook® games. We anticipate collaborating with more clients to maximize the reach and impact of the unique appeal and play value offered by the Pollard PlayBook®.

Pollard Banknote’s patented Pollard PlayBook® brings multiple games together in a unique booklet format, enabling players to enjoy a wide variety of play experiences and a number of different games in a new and exciting way. Games included in the Pollard PlayBook® may incorporate a single play style, such as a booklet of Crossword tickets, or may be designed to include several different play styles around a broader concept—like money, gems and diamonds, or a destination such as Las Vegas.

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: 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 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.

-30-

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