INTRALOT, following an international tender, signed an agreement with the Colombian state lottery organization ETESA (Empresa Territorial para la Salud) for the exclusive license regarding the 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 extension option ? and provides for the gradual establishment of a network of approximately 5,000 points-of-sale throughout the country.

Football is the most popular game in Colombia and the revenues from the operation of Football Prognostics are expected to exceed, over the duration of the contract, 100 USD million per annum. According to the contract, INTRALOT will install an integrated on-line lottery system and the project is expected to commence in the 2nd quarter of 2005.

ETESA is Colombia's state organization, which is responsible for supplying lottery licenses in the country as well supervising the lottery sector. ETESA reports to the Ministry of Health and its revenues are used for financing infrastructure projects and subsidizing hospitals and health programs of the Ministry.

Please note that INTRALOT, via its contractual agreement with DIMAYOR (Football Federation of Colombia), will render a percentage of its revenues from conducting football prognostics.

The gaming market of Colombia is a developing market with estimated annual revenues of 1.2 billion USD and includes numerical and traditional lotteries, while the slot machines and video lotteries market are showing a remarkable growth, a sector in which INTRALOT is expected to expand.

Colombia with 45 million inhabitants is by far one of the most developing countries of Latin America, as it provides both political and economic stability. It is showing a remarkable growth in its economic indices and is a target of foreign investments from USA and Europe. Rating agencies (S & P, Moody's, Fitch) rate Colombia 3rd in the Latin America regarding its economic outlook and perspective. The legal framework for gaming in Colombia is one of the most modern worldwide, as it secures a healthy busine ss environment for the operation of private institutions, under close state supervision.

In addition to its significant presence in Chile and Peru, with this project in Colombia, INTRALOT reaffirms its dominant position in the rapidly developing market of Latin America and sets new grounds for its expansion to the rest of the Continent and especially Brazil and Argentina.