MDI Lands James Bond and Two Other Lottery Licenses From MGM

Business Wire, August 3, 1999

HARTFORD, Conn.--(BUSINESS WIRE)--Aug. 3, 1999--

MDI Entertainment, Inc. (OTC BB:MDIH) announced the signing of a new contract with MGM Consumer Products Group for James Bond(TM), The Pink Panther(TM) and the science fiction series The Outer Limits(TM). The 30-month exclusive agreement enhances MDI's already formidable array of lottery licenses that includes Harley-Davidson(R), Wheel of Fortune(R), Jeopardy!(R), The Twilight Zone(TM) and Louisville Slugger(R).

The James Bond(TM) Agreement includes all 18 classic Bond films as well as the upcoming theatrical release The World Is Not Enough, currently scheduled to open on November 19th.

"We are extremely gratified to have reached this agreement with MGM for these three properties," stated MDI President and CEO Steven M. Saferin. "James Bond(TM) is a property we had identified quite a while ago as a prime lottery opportunity. The "007" logo and other aspects of the Bond mystique should afford lotteries an excellent opportunity to develop games to appeal to not only core players, but also a segment of new players."

"The Pink Panther(TM) is a classic adult property whose icon and music are easily identified. And the Outer Limits(TM) expands MDI's successful Sci Fi offerings which currently include The Twilight Zone(TM) and Star Trek(TM)."

MGM's Consumer Products Vice President Lisa Westfield Avent commented, "We are delighted to team with MDI on this exciting licensing opportunity. There is no doubt that they are the leaders in licensing entertainment properties for lottery applications and we look forward to working with the lotteries and MDI over the next 2 1/2 years."

MDI specializes in creating, marketing and implementing entertainment-based promotions to the North American lottery industry. MDI revolutionized the lottery industry with its introduction of second-chance merchandise prizes. MDI's current lottery promotions include scratch games featuring properties such as Dick Clark's American Bandstand(R), James Bond 007(TM), Times Square 2000(TM), Harley-Davidson(R), Twilight Zone(TM), Star Trek(TM) and Betty Boop(TM).

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.