Athens, Greece – August 30, 2004. INTRALOT S.A. (RIC: INLr.AT, Bloomberg: INLOT GA), yesterday announced its financial results for the six-month period ending June 30th, 2004, prepared in accordance with Greek GAAP. 

Consolidated Financial Statements 
For The 6 Months Ended June 30th, 2004

(in € million)	1H04	1H03	% Change
Revenues (Turnover)	149.8	173.0	-13.4%
Gross Profit	79.2	67.3	+17.7%
Gross Margin (%)	52.9%	38.9%	+14.0pps
EBITDA	67.9	62.5	+8.7%
EBITDA Margin (%)	45.3%	36.1%	+9.2pps
EBT	60.5	55.3	+9.5%
EBT Margin (%)	40.4%	32.0%	+8.5pps

  
Consolidated Revenues for the period reached €149.8m, posting a 13.4% decrease compared to 1H03, due to the non incorporations of the sales of Instant Lottery. 
EBITDA ( Earnings Before Interest, Tax, Depreciation and Amortization) increased by 8.7% to €67.9m, compared to the same period last year.

EBITDA margin reached 45.3% (last year 36.1%) reflecting a more favourable sales mix coupled with international operations’ contribution and increased operational efficiency.

Profits Before Taxes (EBT) recorded an increase of 9.5% y-o-y by reaching €60.5m compared to €55.3m in 1H03.
The cash balance reached €102.9m in 1H04, while total bank debt reached €22.1m in 1H04 shaping the net cash position at €80.8m 
According to International Accounting Standards, revenues for the perioded ended June 30, 2004 stood at €150.2m, while profits before taxes (EBT) for the period reached €61.5m. 

 
Commenting on 1H04 results INTRALOT’s CEO, Mr. Constantinos Antonopoulos, noted: “In the first half of 2004 INTRALOT continued its highly successful expansionary strategy abroad. The company has recently launched operations in Nebraska, Malta and Chile (regarding fixed-odds betting), which are all expected to contribute to the company’s growth in the next quarters. In addition, other signed projects that are under implementation will also contribute to the company’s growth.

In the last quarter, the company has signed a significant agreement with the Colombian State Organization (ETESA) for the exclusive license regarding the operation of all sports betting games in the country. With a significant presence in Chile, Peru and soon in Colombia, INTRALOT has secured a strong position in the highly promising South American market, while plans include the expansion to other Latin American countries in the future. Finally, INTRALOT is continuing to pursue business opportunities related to the operation and/or management of lotteries around the globe, a factor that is expected to strengthen further the company’s global position.”

1H04 Highlights

• In Romania, revenues from Video Lottery (VLT) operations continued to post significant growth in 1H04 as the expansion of video lottery is proceeding well. Following the contract signed with the State Lottery CNLR last December, the company is preparing to introoduce Sports Betting in the country within September.  Moreover, the success of VLTs has spilled over to traditional lottery games, which posted a 220% y-o-y increase on a US dollar basis over the 1H04 period.
• In Bulgaria, Eurofootball continued to post satisfactory results in the first six month period as the company’s revenues grew by 115% in 1H04 due to the efficiency accomplished through the on-line network and the betting game’s increasing popularity.
• In Chile, the operations posted a set of strong results in 1H04, which are expected to be strengthened further as the company has officially launced in July fixed-odds betting in the country for the state lottery Polla Chilena, the first betting game to be offered in South America.
• In Peru, Loteria Perugana and the recently acquired Tektron have recently completed merging their activities. Operations are continuing well and the company posted robust 1H04 performance. Revenues are expected to be strengthened further as the company’s plans include the introduction of video-lottery (VLTs) as well as the upgrade of Tektron’s system by the end of the year.
• In Turkey, Inteltek completed successfully the pilot-testing phase of the Betting game in the country in the beginning of August. By the end of the second quarter, betting was offered through 2,000 POS and is expected to reach 4,000 POS by the end of the year. Moreover, the company will start the first phase of its advertising campaign in the country in September.
• In Malta, Maltco has launched operations in the beginning of 2H04. Maltco’s sales are expected to be boosted significantly in the next quarters with the introduction of the betting game in Q4 2004 and KENO in the beginning of next year.
• In Moldova, revenues for our subsidiary Loteria Moldovei for the six-month period more than tripled on a yearly basis as the new games introduced (i.e. Betting and video-lottery) are continuing to gain popularity.
• In the US, our subsidiary INTRALOT Inc. has successfully launched operations of its Nebraska Lottery on the 1st of July with the replacement of the previous system provider without any problems while operations are proceeding well.
• Colombia: INTRALOT signed an agreement with the State lottery Organization ETESA for the exclusive operation of all sports betting games both mutual and fixed-odds in the country. The contract duration is 5 years –with a 2.5 year renewable option- and provides for the gradual establishment of up to 5,000 POS throughout the country. Official launch of operation is expected in Q2 2005.

INTRALOT is a leading supplier of integrated gaming and transaction processing systems, innovative game designs and value added services to state-licensed gaming organizations and financial services providers worldwide. With 27 subsidiaries and 1,300 people in 26 countries and revenues of € 320 million, the company dominates in Europe, has secured a strong position in South America and has established a foothold in North America, while expanding its presence in S.E. Asia and Australia. Following a highly successful period of rapid growth. INTRALOT currently ranks 3rd on revenues and 2nd on profits among lottery suppliers worldwide.