Diversification of product offerings was given a significant...

Diversification of product offerings was given a significant boost with the signing of the
Memorandum of Cooperation with Shanghai Sports Lottery Administration as reported on 16 July 2007. Implementation of Sports Lottery terminals into the Shanghai POSs is expected to commence from early September 2007. By end of October 2007, up to 200 Sports Lottery terminals are expected to have been installed, enabling the Company to add significant sales of Sports Lottery products through our POS network with minimal increase in operating overheads.

Shanghai Sports Lottery Administration will also be launching a new high frequency game in
Shanghai and the Company’s POS network will become a vital part of their distribution network
for the launch. Our Shanghai management is targeting significant increase in sales with the addition of Sports Lottery’s new and traditional gaming products.
From September 2007 onward, SSI will become the only major distributor of gaming products in
China that is able to distribute the full range of legalized games from the only two legalized gaming operators in the country, namely Welfare Lottery and Sports Lottery, thus adding significant value to our retail network and our gaming license position.