INTRALOT, the leading supplier of integrated gaming and transaction processing systems, expands further its presence in the highly demanding and technologically advanced US Lottery market. Following an international tender process the Company was announced as the apparent successful vendor for the contract with the New Mexico Lottery, regarding the supply of the Lottery's new On-Line Gaming System. Pending final contract negotiations, the term of the contract would be for seven (7) years with a three (3) year extension option. The new games system would cut over in November 2008. The project entails a technology upgrade including the installation of INTRALOT's LOTOS O/S On-line and Instant Gaming Computer System, more than 1,100 machines which include the Coronis HEE, microLOT and mobile Coronis IPT terminals for the retailer locations across the State as well as Instant Ticket Vending Machines (iTVM) for online and instant scratch games. In addition, INTRALOT will install a state-of-the-art satellite network to link retailer terminals to the central system. INTRALOT's subsidiary in USA, INTRALOT Inc., with its highly qualified and experienced personnel will be working closely with the Lottery and will fully and uninterruptedly support the new system. Since it's creation in 1996, the New Mexico Lottery has generated gross sales of approximately $1.3 billion dollars and transferred more than $317 million to its beneficiary, the Legislative Lottery Scholarship program. In addition to instant "Scratcher" games, the New Mexico's Lottery offers 5 "lotto-style" games to the State's 1.8 million residents. Based on per capita lottery spending in New Mexico, Intralot believes that there is significant potential for growth.