"Hollywood Squares" Rounds Out MDI Entertainment's TV Game Show Offerings as Newest "Star-Studded" Lottery Promotion.

Business Editors

HARTFORD, Conn.--(BUSINESS WIRE)--March 15, 2001

MDI Entertainment, Inc. (NASDAQ SC: LTRY) has signed a three-year agreement with CBS Consumer Products for the exclusive rights to market television's hilarious, star-studded game show, Hollywood Squares(R) to lottery promotions throughout the United States and Canada. Steven Saferin, President and Chief Executive Officer of MDI Entertainment made the announcement.

Based on the classic tic-tac-toe game format with Academy Award-winning actress/comedienne Whoopi Goldberg in "center square," and Daytime Emmy Award-winner Tom Bergeron hosting an eclectic mix of humorists and celebrities, Hollywood Squares(R) is the latest addition to MDI Entertainment's varied slate of creative television game show lottery offerings, which also includes the wildly popular Wheel of Fortune(R) and Jeopardy!(R) promotions. Through the Hollywood Squares(R) " instant lottery game, MDI will offer consumers a chance to win exciting prizes such as VIP trips to Los Angeles to audition for an appearance on the game show, VIP audience passes to live tapings, and official Hollywood Squares(R) merchandise.

"Hollywood Squares(R) is one of the strongest brands of television series currently on-air today, and we are extremely proud to introduce this timeless concept to the Lottery industry," said Mr. Saferin. "Tic Tac Toe format lottery games have been widely successful and Hollywood Squares Tic Tac Toe stage setting offers a host of creative possibilities for design, play style and promotion. The overwhelming success of the Wheel of Fortune(R) and Jeopardy!(R) promotions is positive proof that television game shows and Lottery players are a perfect and profitable match. We look forward to working with King World and CBS Consumer Products in achieving great success all over North America and Canada with the ever-popular Hollywood Squares(R) brand."

"As Hollywood Squares(R) is presently enjoying its rank among the top-rated game series in television syndication, we view this venture with MDI Entertainment as a prime opportunity to grow the show's brand and take it to another level," added CBS Consumer Products Vice President, Ken Ross. "Through this unique promotional vehicle, we are offering American and Canadian television audiences, and the vast lottery patron clientele in both countries, new ways to experience the thrill of actually playing Hollywood Squares(R) and win dream trips, big prizes and fantastic merchandise just like contestants on the television show."

Hollywood Squares(R) is one of television's biggest comeback stories. In its return season, the series drew more than 5.5 million nightly viewers -- a remarkable start for first-run syndication. Currently the show is in its third season and airs on 190 U.S. television stations. Additionally, since its big return to television, an "A" list of stars and famous personalities have been "Squared." Bill Crystal, Rosie O'Donnell, Cindy Crawford, Joan Rivers, Robin Williams, Garth Brooks and dozens of other celebrities have appeared Hollywood Squares(R), trading barbs and quips with witty host Tom Bergeron and the razor-sharp Goldberg, who also serves as executive producer of the series.

Hollywood Squares(R) has also introduced special theme weeks such as Olympic Gold Medalist Week, Teen People Week, Daytime Soap Opera Week, Latin Grammy Artists Week and even a Survivor Week. Another new twist to the game show is the Internet Sweepstakes, which for a limited time, allows viewers to win prizes by logging on a web site and identifying the celebrity of the day.

Popular Lottery scratch games and "turn-key" promotions designed around Wheel of Fortune(R), Jeopardy!(R) Harley-Davidson(R) and many other brands and cultural icons 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 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-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 International, a wholly-owned subsidiary of Autotote Corporation (AMEX: TTE). Scientific Games is one of the world's largest suppliers of lottery games. And MDI also has joined forces with eLOT, Inc. (NASDAQ: ELOT), which provides Internet-based services to Lotteries. Both partners have acquired interests in MDI.

MDI's current lottery promotions also include scratch games featuring other properties such as Elvis Presley(R) and Graceland, Betty Boop(TM), Twilight Zone(TM), Louisville Slugger(R), TNN(R), CMT(R), Hummer(R), Ray Charles(R), Emmett Kelly, Jr.(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) and auto race drivers Dale Earnhardt(R), Dale Earnhardt, Jr.(R), Mark Martin, Matt Kenseth, Jeff Burton and Bill Elliott.

Hollywood Squares(R)is co-produced by King World Productions, Inc. and Columbia TriStar Television in association with Moffitt-Lee Productions and Goldberg's One Ho Productions. It is distributed in the U.S. by King World Productions and globally by CBS Broadcast International.

CBS Consumer Products manages the worldwide licensing, merchandising and video activities for a diverse slate of properties from CBS Productions and King World Productions, Inc.

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.