MALTCO LOTTERIES LTD, INTRALOT's subsidiary in Malta, which has the exclusive license for the operation of all lottery games in the country, has successfully launched its activities.

The first week of operation of the new on-line system commenced with the following games: Super 5, LOTTO, and Instant Lottery Tickets, while Sports Betting and KINO will be introduced in the near future.

The system consists of state of the art CORONIS terminals, which are connected through a high-speed telecommunication network ADSL with the central system and runs on the LOTOS software platform, one of the most modern platforms for lottery games management internationally. LOTOS supports the operation of a dual central system (main and back-up) that is located in different places in the country, ensuring the continuous operation of the games.

The organization of the company and the installation of the system were completed in four months, enabling players to continue to play in an automated system with all the essential assurance for transparency and credibility. At the same time, an advertisement campaign has been launched regarding the beginning of a new era for the national lottery of Malta. It is worth noting that the sales of the second semester of 2004 (start of MALTCO?S operations) are expected to exceed the sales of the first semester, which reached euros 28 million (or 12 million LM).

INTRALOT holds a 73% stake in MALTCO LOTTERIES LTD, while local entrepreneurs possess the remaining 27%. Currently, MALTCO employs 50 people (95% Maltese) and the total investment program is expected to reach euros 30 million upon its completion.

The privatisation project of Malta's national lottery was assigned to MALTCO LOTTERIS, following an international tender, and constitutes a privatisation model that is followed by other countries as well. The duration of the contract is 8 years with a renewal option. The introduction of new technology, INTRALOT?s know-how and the operation of new games are expected to contribute to the shrinking of the illegal market and double the sales of the legal games in the country.