VIRGINIA LOTTERY PLAYERS TO BE COMPENSATED FOR MISPRINTED SUPER 7's TICKETS THROUGH PLAYER RECOGNITION FUND

The Virginia Lottery today announced that it has reached an agreement with its gaming services provider regarding the problem with the Fast Play Super 7's game. As a result, the Lottery, while not able to pay the expected prizes, is able to give some compensation to players for the unfortunate experience they encountered for a few hours on Sunday, October 19, 2008.

"The recently launched Fast Play Super 7's game provided by GTECH Corporation to the Virginia Lottery contained a programming error that created an inaccurate impression in the playing area of the game ticket that made it appear that some combinations were entitled to prizes that they were not," commented Alan Eland, GTECH Senior Vice President.

"While the integrity of the lottery system was not compromised, the confusion caused by the error in the game is regrettable. GTECH takes full responsibility for the issues related to the game's performance."

Mr. Eland continued, "GTECH values its relationship with the Virginia Lottery and has entered into a settlement with the Lottery, the proceeds of which can be used at the Lottery's discretion."

The incorrect tickets were printed on October 19, which was the first day of ticket sales for the new $2 computer game. The Lottery sold

2,336 tickets before sales were suspended. Of those, 609 printed incorrectly, showing prize levels ranging from $2 to $7,777.

The Virginia Lottery, in consultation with the Office of the Attorney General, determined that the Lottery must follow its official rules for the Fast Play Super 7's game. It is clearly explained on the back of every ticket that "Tickets are void if stolen, misprinted, mutilated, incomplete or cancelled, or do not meet the State Lottery validation tests." Virginia's Administrative Code contains similar restrictions. In the Super 7's incident, a software loading error caused misprinted tickets.

Therefore, as a matter of law, the Virginia Lottery cannot pay the prizes that appeared on the misprinted tickets for the Super 7's game.

"Rules are in place to protect players and the Lottery both when everything goes as expected and when there's a problem," said Virginia Lottery Executive Director Paula Otto. "It is critical that the Lottery follow its rules. However, in fairness to and in the best interest of Virginia Lottery players and retailers, the Lottery will offer all players who purchased what appears to be a winning Super 7's ticket the opportunity to redeem it for a cash payment from a Player Recognition Fund."

The Player Recognition Fund is worth up to $1 million. The payouts to players will be given in recognition of the disappointment and inconvenience caused by the mistake, but will not equal the amount shown on the misprinted ticket. The Lottery estimates that it will pay approximately $2,000 for tickets showing a $7,777 prize, approximately $200 for tickets showing a $577 prize, and approximately $100 for tickets showing a $277 prize.

"The Virginia Lottery is extremely disappointed about this error and the inconvenience it has caused our players and retailers," said Otto.

"We realize this decision may not satisfy everyone affected, yet we feel it strikes the proper balance between the Lottery's legal responsibility to the Commonwealth and our goodwill to players."

Players who purchased winning Super 7's tickets may complete an Application for Payment at a Lottery Customer Service Center or Lottery Headquarters. For office locations and contact information, players can visit www.valottery.com/contactus.asp or call (804) 692-7778. Players can also request the form by e-mailing playerfund@valottery.com. Players can deliver the form to a Lottery office or mail it to:

The Virginia Lottery

Player Recognition Fund

P.O. Box 2489

Richmond, Virginia 23218-2489

All Applications for Payment must be postmarked no later than 5:00 p.m.

on Friday, November 21, 2008. The Virginia Lottery Security Department will gather information about all tickets. Applicants can be assured that the Lottery will work diligently to process applications as fairly and expeditiously as possible.