Press Release

Pollard Banknote’s Instant Holiday Game Sets Cyprus Government Lottery Sales Record

WINNIPEG, Manitoba, January 8, 2014 /CNW/ – Pollard Banknote Limited (TSX: PBL) (Pollard Banknote) is pleased to announce the sales success of the Cyprus Government Lottery’s €3 holiday game, Merry Christmas. Selling out in just five weeks, Merry Christmas has become the bestselling instant ticket in the Lottery’s history. The Lottery’s reorder of Merry Christmas tickets had a very tight timeline for delivery and also sold very quickly—within three weeks. The exceptional sales of Merry Christmas led to the ticket being featured in European Lotteries’ December 2013 issue of EL Magazine.

Pollard Banknote partnered with the Lottery to breathe new life into its annual holiday game. This festive instant game featured ticket art developed and designed by Pollard Banknote and replaced the Lottery’s previous holiday game, which combined an instant scratch game with a passive draw. Merry Christmas has a folded design that emulates a standard holiday card. The ticket offers traditional Christmas imagery on the front, such as holly berries, evergreen branches, Christmas balls and bows, and a fun, bright winter scene with animals on the inside play area. Players also enjoy the high entertainment value of 25 scratch areas and a broad variety of festive play symbols such as presents, candy canes, sleighs, and snowflakes.

“The demand for our Merry Christmas ticket exceeded our expectations,” explained Marios Constantinou, Chief Administrator of the Cyprus Government Lottery. “The re-order was sold out by December 16, and I am sure we could have sold a third order by the end of 2013!”

In 2010, the Cyprus Government Lottery awarded Pollard Banknote an exclusive two-year contract and has exercised the option of two additional one-year renewals. Under this contract, Pollard Banknote supplies instant scratch tickets, including game design, ticket production, marketing support and strategic planning.

“Pollard Banknote congratulates the Cyprus Government Lottery on setting a new sales record with its Merry Christmas ticket,” said Doug Pollard, Co-Chief Executive Officer, Pollard Banknote. “Over the last few years, we have developed a strong relationship with the Lottery and a solid understanding of the Cyprus market. The success of this game exemplifies Pollard Banknote’s ability to introduce a new sales-driving ticket concept—such as the holiday card format—and complement it with refreshing artwork.”

The Cyprus Government Lottery was established shortly after the Independence of Cyprus in 1960 and entered the instant ticket market in 1979. The Lottery operates in accordance with the Cyprus Government Lotteries Law and Regulations. Net profit from Lottery operations is transferred into the Consolidated Fund of the Government of Cyprus, from which the government budget is financed.

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