Press Release

Pollard Banknote Awarded Instant Ticket Printing Contract By Taiwan Lottery Co. Ltd.

WINNIPEG, Manitoba, May 27, 2014 /CNW/ – Pollard Banknote Limited (TSX: PBL) (Pollard Banknote) is pleased to announce that it has been awarded a new contract for primary instant ticket printing by the Taiwan Lottery Co. Ltd. (“TLC”). The two-year contract began January 1, 2014, and includes provisions to extend the agreement for up to two additional years.

As a member of the Asia Pacific Lottery Association (“APLA”) and an exclusive provider of instant tickets to Taiwan for the past 12 years (seven years contracted with TLC and five years with the previous operator), Pollard Banknote has developed an in-depth understanding of the Taiwanese market—specifically, the game design characteristics and play preferences that appeal most to players, as well as the unique security and quality considerations that must be taken into account for optimal success. Since 2006, TLC has seen an extraordinary 347% increase in instant ticket sales—the result of a charitable reputation, diverse product portfolio, and a strategic marketing partnership with Pollard Banknote in the areas of promotion, product design and channel management.

Sales data from early 2014 indicates that the Lottery is on track for yet another year of tremendous growth. During the first three months of 2014 alone, TLC generated a staggering $1.35 billion USD in instant ticket sales—a particularly noteworthy achievement considering 2013 annual instant ticket sales totaled $1.67 billion USD.

“We have developed a very close and cooperative working relationship with TLC over the past seven years,” said Doug Pollard, Co-Chief Executive Officer, Pollard Banknote. “The unprecedented growth experienced by TLC in recent years is a reflection of the Lottery’s hard work and dedication to providing secure, high-quality games to the people of Taiwan. We are committed to building on the proven success of this partnership and continuing to explore new and innovative products and marketing strategies for Taiwan’s unique marketplace.”

“We are pleased to announce that Pollard Banknote will continue to be a key partner in the growth and development of our instant tickets,” said Joy Huang, President, TLC. “We have enjoyed a very profitable relationship with the Pollard Banknote team and we look forward to further successes during the term of this new contract.”

As the operator of Taiwan’s Public Welfare Lottery since 2007, CTBC Bank Co., Ltd. (“CTBC Bank”) was once again awarded a 10-year lottery operator license by the Ministry of Finance beginning January 1, 2014, and running through to December 31, 2023. CTBC Bank subsequently contracted with TLC to manage the operation of the lottery business, consisting of online, instant, and passive products. TLC offers diversified lottery products to Taiwan’s citizens and strives to assist socially disadvantaged groups in Taiwan through the allocation of lottery profits.

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