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

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