Press Release

Innovative Lighted Side Panel Instant Ticket Displays By Schafer Systems, A Pollard Banknote Company, Dispense Success For The Kansas Lottery

WINNIPEG, Manitoba, November 12, 2020 /CNW/ – Pollard Banknote Limited (TSX: PBL) (“Pollard Banknote”), is pleased to congratulate the Kansas Lottery and our subsidiary, Schafer Systems (2018) Inc. (“Schafer Systems”), on the outstanding success of a recent pilot test program that evaluated the addition of lighted side panel instant ticket dispensers at select Kansas Lottery retailers. During the test period of July 12, 2020 to October 3, 2020, participating retailers experienced over 31% average growth in instant ticket sales over the same period last year, compared to the state-wide average of approximately 20%.

Schafer Systems’ lighted side panel dispensers sit on-counter and include 16 facings, allowing retailers to display a wide variety of instant ticket offerings. This unique dispenser features vertical lighting, available in numerous eye-catching colors and patterns, on both sides of the display to draw added attention to the tickets it showcases. This sleek and modern design stands out in a crowded retail environment, while ensuring the tickets themselves are the focus.

The Kansas Lottery pilot program was conducted in eight retail locations across the state. Each participating retailer replaced its existing on-counter dispensers with lighted side panel instant ticket dispensers to gauge the effectiveness of this innovative display in Kansas Lottery retail locations. Participating retailers found the dispensers easy to install due to their preconfigured format that allowed them to be attached to the counter right out of the box. The addition of the dispensers proved so successful that one store saw instant ticket sales increase by over 50%!

“We are very pleased with the findings of this test pilot conducted in partnership with Schafer Systems – the lighted dispensers are just what our retailers need to keep driving sales and excite customers,” said Crystal Roudybush, Deputy Sales Director, Kansas Lottery. “Maximizing the Lottery’s presence at retail is key to raising brand awareness, attracting new players and engaging existing players – all of which contribute to the Lottery’s overall success and ultimately benefits all Kansans.”

“The lighted side panel instant ticket dispensers are a really great way to make customers take notice of a lottery’s exciting instant ticket offerings,” said Shay Wahl, Sales & Marketing Manager, Schafer Systems. “We are thrilled that Kansas Lottery retailers have seen such great results by leveraging our unique dispensers and are looking forward to see how we can continue this momentum to help the Lottery continue to generate revenue for the good causes it supports.”

Since the Kansas Lottery’s start-up in November 1987, ticket sales have produced nearly $1.9 billion in revenues for the State of Kansas. In that same period, nearly $3.6 billion worth of prizes have been paid to players, and retailers have earned more than $370 million in commissions. Funds generated by the Kansas Lottery go towards supporting economic development initiatives, prison construction and maintenance projects, local juvenile detention facilities, problem gambling assistance, and the State General Fund.

About Schafer Systems

Schafer Systems was founded in 1986 in Adair, Iowa and has built business largely on creating innovative products including lottery ticket dispensers and point of purchase displays for the lottery industry. Serving over 60 clients domestically and internationally, the company has a strong reputation for quality products and exceptional customer service. With a focus on solutions to increase sales at the retail location for the lottery industry, and on the  development of innovative and proprietary products, Schafer Systems is a lead and key partner to lotteries for on-counter, in-counter, wall mounted, promotional products, mounting fixtures, stands, as well as play stations and game centers in a variety of sizes.

FOR MORE INFORMATION ABOUT SCHAFER SYSTEMS, CONTACT:
Teresa Immel
Senior Director Sales & Marketing
(641) 742-5133
E-mail: teresa.immel@ssi-ia.com

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