Scientific Games Corp.

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International Guild of Hospitality & Restaurant Managers

Scientific Games Corp. (NasdaqNM:SGMS)

750 Lexington Avenue, 25th Floor
New York, NY 10022

Phone: (212) 754-2233
Fax: (212) 754-2372
Email: invrel@autotote.com
Employees (last reported count): 2,780

Scientific Games Corporation is a worldwide provider of services, systems and products to both the instant ticket lottery industry and the pari-mutuel wagering industry. The Company offers its customers a wide array of products and services. It also is a fully integrated lottery service provider, offering lottery authorities online lottery systems, instant tickets and related facilities management, as well as cooperative services and programs, which enable such authorities to outsource all of their instant ticket lottery operations to the Company.

On September 6, 2000, the Company's predecessor company, Autotote Corporation, completed the acquisition of Scientific Games Holdings Corp. (SGHC). The acquisition was completed through a merger in which SGHC became the Company's wholly owned subsidiary. Prior to the acquisition of SGHC, the Company operated primarily in three business segments: pari-mutuel operations, venue management operations and lottery operations. Subsequent to the acquisition, the Company reorganized its operations into four business segments: lottery, pari-mutuel, venue management and telecommunications products.

Lottery Group

Scientific Games offers instant ticket and related services. The Company's instant ticket customers include 28 of the 40 jurisdictions in the United States that sell instant lottery tickets, as well as lotteries in over 50 other countries. In addition to ticket design and manufacturing, the Company provides lotteries with related value-added services through its cooperative services program, including game design, sales and marketing support, inventory management and warehousing and fulfillment services. It also provides its probability-based instant lottery tickets, which utilize a patented electronic circuit printed in each ticket to produce a ticket with multiple possible outcomes and probability ticket validation terminals based on the Company's security technology.

The Company's lottery systems business primarily provides customized computer software, equipment, and data communication services to lottery authorities for online and instant ticket games. In the United States, the Company provides the necessary equipment, software and maintenance services pursuant to long-term contracts that typically have a minimum initial term of five years.

Pari-mutuel Group

The Company is a provider of computerized wagering systems to the pari-mutuel wagering industry. It provides its systems and services to horse and greyhound racetracks, OTBs, casinos, jai alai frontons and other establishments where pari-mutuel wagering is permitted. In addition, the Company is a provider of ancillary services to the industry, such as race simulcasting and telecommunications services, video gaming terminals and telephone and Internet account wagering.

Venue Management Group

Scientific Games owns substantially all off-track pari-mutuel wagering in Connecticut. The Company's Connecticut operations consist of 12 OTB facilities, including simulcasting at two teletheaters and three other branches, and telephone account wagering for customers in 31 states. The Company is also the exclusive licensed operator for all pari-mutuel wagering in The Netherlands, with five racetracks and 39 OTBs as of December 31, 2001.

Telecommunications Products Group

The Company is a manufacturer of prepaid phone cards in Europe, which entitle cellular phone users to a defined value of airtime. Prepaid phone cards offer consumers worldwide a way to purchase cellular airtime, without requiring phone companies to extend credit or consumers to commit to contracts. It has approximately 18% of the European market for prepaid cellular phone cards and is a supplier of paper-based prepaid phone cards. To prevent fraud, its phone cards incorporate proprietary security technology originally developed for the Company's instant lottery ticket operations.

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The data included within the Financial section is solely for information and does not construe a recommendation and/or endorsement by IGHRM or its members to invest funds with any of the companies listed. You are strongly advised to obtain professional advice with qualified individuals or corporations for any investments of funds.

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