Following a question that you posed to us with your letter dated 07.12.2006 and further to our answer to your letter dated 07.12.2006 and in accordance with the timely and accurate information provided to the investment community following the ASE''s regulation articles 281 and 285, with regards to the recent decision of the Turkish court, our response is as follows:
Firstly, the decision of the Turkish court does not annul the process of granting the right to operate the Turkish sports betting, a game that is managed and operated by our subsidiary company Inteltek on behalf of the Turkish national gaming organization Spor Toto. The relative decision was issued following a recourse by the company Gtech Avraya teknik Hizmet ve Musavirlik AS against Spor Toto and the Turkish Public Tender Authority (PTA) and not against our subsidiary company Inteltek. The case was adjudicated by the 4th First Instance Administrative Court of Ankara. The history of this case is mentioned in the notes of the 9-month, 2006 financial statements of INTRALOT, which were published on November 21, 2006, and the only development relates to the issuance of the above mentioned decision of the 4th First Instance Administrative Court of Ankara. Given that against this decision and against any decision that the PTA may issue, the local law affords to the parties that have a legal interest in the case the possibility to take legal actions of appeal, we cannot perform a safe estimate for the time needed to arrive to the completion of this pending case , however we believe that it may take a long time to resolve. The court decision refers to (a) the dismissal of the request of the plaintiff for the cancellation of the granting of the sports betting tender to Inteltek, and therefore, the continuation of the execution of the contract, and (b) the dismissal of the decision of the PTA, on the basis of the plaintiff request, which (PTA) has ruled in the past that the relative tender process does fall within the jurisdiction of the public procurement law. As a result, the case will be sent to the PTA for a further review. Thus, the decision does not mention something that relates to to the cancellation of the sports betting tender or the right of Inteltek to manage the game; in contrast the relative request of the litigant is rejected and the relative contract of Inteltek with Spor Toto continues normally its operations. The plaintiff does not have the right to request injunction measures for the discontinuation of the game in the context of this law suit. As we also mention in our previous letter, the court relegated the issue of whether the tender in question is ruled from public procurements law for review to PTA, which will decide accordingly. In case of compliance of the PTA with the court decision, the result will not be the acceptance of the demands of the litigant but a re-examination of the case. The PTA will have to meet to review th issue within 30 days from the day the court decision has been served to it, and will have to issue a relative decision within 45 days following its meeting date, which will be subject to appeal according to what it is mentioned herein above. Inteltek, according to the International Financial Reporting Standards, based on which it prepares its financial statements for consolidation, has not made up to now and is not obliged to make any provisions relative to the above mentioned issue, since there are no financial liabilities for the company from any possible development of the case. According to the consolidated financial statements of 30/09/2006, Inteltek contributes 18.8% to consolidated revenues and 34.5% to profits after tax and after minorities. Should there be any further developments regarding the above mentioned issues, our Company will proceed to the appropriate announcements towards the regulating authorities and the investment public, as the existing legislation dictates.