Press Release

Pollard Banknote Awarded New Contract To Supply Scratchers® Games To The California Lottery

WINNIPEG, Manitoba, December 19, 2013 /CNW/ – Pollard Banknote Limited (TSX: PBL) (Pollard Banknote) is pleased to announce that, pursuant to a competitive procurement process, it has been chosen to continue as a supplier to the California Lottery to provide Scratchers® games and related services. This six-year contract commenced December 1, 2013 and includes the option of a three-year extension, plus three additional one-year extensions.

Pollard Banknote’s relationship with the California Lottery dates back to 1997. Through the years, the company has successfully worked with the California Lottery to help strengthen its instant game portfolio. In particular, Pollard Banknote has assisted in the development of the Lottery’s extended play category, which includes Crossword and Bingo games. In fiscal year 2013, revenue generated from Pollard Banknote’s Crossword and Bingo games accounted for more than 20% of the California Lottery’s total instant ticket sales.

Yet another testament to the success of this longstanding partnership was the launch of the California Lottery’s $3 Tripling Crossword game in 2008. Printed exclusively by Pollard Banknote, Tripling Crossword is the longest running Crossword game and second longest running instant game in the Lottery’s history. Since the introduction of Tripling Crossword, it has generated more than $955 million in total sales— making it the top selling Crossword game of all time in California!

“We are honored that the California Lottery has once again chosen Pollard Banknote as a supplier of its Scratchers® games,” said Doug Pollard, Co-Chief Executive Officer, Pollard Banknote. “Since we began working with the Lottery more than 15 years ago, we have established a collaborative and successful relationship that we look forward to building on in the years to come. We will continue to work with the Lottery to produce fresh and exciting Scratchers® games that are of the utmost quality and value for California players.”

The mission of the California Lottery is to provide supplemental funding to California schools while simultaneously supporting local communities. More than $0.96 of every dollar spent by California lottery players goes back to local communities in the form of contributions to public schools and colleges, prizes and retail compensation.

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