China Sports Lottery Joins MDI Entertainment's FIFA World Cup Lottery Team.

Business Editors

HARTFORD, Conn.--(BUSINESS WIRE)--May 10, 2002

Sports lottery games scheduled for sale in the most populous country on the planet will soon feature FIFA World Cup(TM) themes from MDI Entertainment, Inc. (OTC BB: LTRY), the company announced today.

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The China Sports Lottery markets instant and online games in 31 provinces as well as autonomous regions and municipalities. It recorded sales that equate to more than $2 billion in 2001.

The China Sports Lottery offers two lottery games, a scratch game that went on sale on May 8 and an online sports game, which will begin on May 15. The 2002 FIFA World Cup(TM) lottery scratch game is a unique product based on the outcome of every game in each of the 8 groups leading to the final event on June 30. Players will win varying amounts depending on the game results printed on their ticket. The lottery player holding the ticket that has the correct winning combination of the eventual World Cup champion will win the grand prize of 2 million Yuan, or the equivalent of $250,000. Even lottery players holding tickets with all incorrect, or losing teams, will win 50 Yuan. Tickets will bear the official marks and logos of FIFA World Cup(TM).

On May 15, three different types of online football pools game will go on sale. The first is based on the outcome of 13 games; the second is based on the correct listing of the top four teams, and the third game is based on the correct listing of the top eight teams. The correct winning tickets will share a pari-mutuel prize pool of 5 million Yuan.

MDI holds exclusive rights to the 2002 FIFA World Cup(TM) Korea/Japan soccer finals for lottery games and promotions. The World Cup is regarded as "the greatest single sporting event in the modern world."

A worldwide audience of more than 1.3 billion people watched the final game played in France in 1998, and more than 2.7 million fans attended the 64 playoff matches leading up to the final game.

FIFA stands for Federation Internationale de Football Association, the group that has organized the games and determined World Cup Champions for more than 70 years. The 2002 finals will be hosted by Korea and Japan, and will mark the first time in the history of the championship that the finals will be played outside Europe and the Americas.

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

Currently, the company's portfolio of licensed lottery properties includes but is not limited to the NBA/National Basketball Association, Betty Boop(TM), Elvis Presley(R), I Love Lucy(R), Magic 8 Ball(R), FIFA World Cup(R) Soccer, Universal Studios Monsters(TM), SPAM(TM), Heroes of Space(TM), Louisville Slugger(R), CMT(R), Wheel of Fortune(R), Jeopardy! (R), Harley-Davidson(R), The Hollywood Sign(R) and Hollywood Walk of Fame(R) Ray Charles(R), Hollywood Squares(R), TABASCO(R), Lionel, and NASCAR(R) race drivers including Jeff Burton(R), Mark Martin(R), Matt Kenseth(R), and Bill Elliott(R).

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.