MDI Secures World Cup 2002 Japan/Korea Lottery License.

Business Editors

HARTFORD, Conn.--(BUSINESS WIRE)--Oct. 29, 2001

MDI Entertainment, Inc. (OTCBB: LTRY), announced today that the "greatest single sports event of the modern world" is now available for Lottery games and promotions through MDI. The company announced today

Under the terms of the exclusive agreement with Federation Internationale de Football Association (FIFA), lotteries the world over will be able to offer players officially sanctioned World Cup instant lottery games through MDI, featuring images of the official FIFA World Cup logo, mascot and trophy. MDI's agreement with FIFA covers all worldwide government lotteries except those in the two host nations of Korea and Japan.

The 2002 FIFA World Cup(TM) has all the promise of the legendary battles that have determined World Champion national football teams for more than 70 years. The USA and 21 other countries have already qualified, including defending champion France, Russia, China, England, Italy, Spain and Argentina.

The 2002 finals will be hosted by Korea and Japan, and mark the first time in the history of the World Cup, which has alternated every four years between Europe and the Americas, that the Cup will be decided in Asia.

"We are honored to have been awarded the FIFA World Cup(TM) license for lottery games and promotions, and pleased to add it to our broad-based entertainment properties," said MDI President and CEO Steven Saferin. "A worldwide audience of more than 1.3 billion people watched the Final played in France in 1998, and 2.7 million people attended the 64 playoff matches held there," he said.

"This is the perfect property to jump-start our international sales and marketing efforts," he added. "The non-North American lottery market represents approximately $80 billion. We introduced the World Cup at the recent World Meet 2001 lottery conference in Albuquerque and have already received an encouraging response from lotteries in countries that have qualified for the World Cup."

Popular Lottery scratch games and promotions designed around Elvis Presley(R) and Graceland(R), Wheel of Fortune(R), Jeopardy!(R) Harley-Davidson(R) and more than 30 other licensed properties are offered to government sponsored lotteries through MDI's exclusive licensing programs. Motorcycles, dream trips, game show auditions, merchandise packages and other exotic prize giveaways, and advertising campaigns can be customized for a state, region or time of year, adding value to the games. MDI revolutionized the lottery industry with its introduction of second-chance merchandise prizes.

MDI's wide array of services include game and ticket design, merchandise prize fulfillment, management of second- and third-chance draws, a fully-staffed customer service line, coordination of winner travel and accommodations, advertising and marketing support, consumer research and Internet marketing and advertising.

MDI has entered into a strategic business agreement with Scientific Games Corporation (AMEX: SGM). Scientific Games is one of the world's largest suppliers of lottery games and has an acquired interest in MDI.

In addition to the above mentioned lottery promotions, MDI also has scratch games featuring properties such as Betty Boop(TM), Twilight Zone(TM), Louisville Slugger(R), TNN(R), CMT(R), Hummer(R), Ray Charles(R), James Bond 007(R), Pink Panther(TM), The Outer Limits(TM), Heroes of Space(TM), Michael Buffer's Let's Get Ready To Rumble(R), Dick Clark's American Bandstand(R), Times Square 2002(TM), SPAM(R), TABASCO(R) Tarot Card Reader Miss Cleo(R), Greatest Sports Legends, Emmett Kelly Jr., The Hollywood Sign(R) and Walk of Fame(R), and auto race drivers Dale Earnhardt(R), Dale Earnhardt, Jr.(R), Mark Martin, Matt Kenseth, Jeff Burton, Bill Elliott, Kurt Busch and Elliott Saddler.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by MDI) contains statements that are forward-looking, such as statements relating to the future anticipated direction of the lottery industry, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales and potential contracts. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of MDI. These risks and uncertainties include, but are not limited to, those relating to development and expansion activities, dependence on existing management, financing activities, domestic and global economic conditions, changes in federal or state tax laws and market competition factors.