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HIGH INTEGRITY SYSTEMS ISSUES STATEMENT ON CALIFORNIA LOTTERY CONTRACT

 ATLANTA, April 22 /PRNewswire/ -- Anthony Stefanis, chairman and chief executive officer of High Integrity Systems, Inc. (HISI), today issued the following statement regarding the contract with the California State Lottery:
 "In July 1992, High Integrity Systems, Inc. contracted with the CSL to provide a system to automate the processing of instant lottery tickets and to sell on-line game tickets through 10,000 low-volume terminals. On April 21, 1993, we received notification from the California State Lottery (CSL) that HISI's lottery contract has been terminated and that the CSL intends to sue HISI for breach of contract. We strongly disagree with the CSL's allegations about HISI's performance, and we are very surprised at the CSL's action because the system HISI recently delivered is operational and ready for acceptance testing by the CSL.
 "On April 2, 1993, nine days ahead of the CSL schedule, HISI delivered to the CSL a working system with supporting documentation for the commencement of acceptance testing. We have successfully demonstrated the HISI system to several groups including members of the CSL staff. We are satisfied that HISI's delivery of the system meets the material requirements of the contract. To our knowledge, the CSL has not yet conducted a test of our system.
 "HISI's project schedule was extended by the CSL to accommodate the CSL's new requirements for expanded and enhanced lottery services. HISI's ability to meet the revised schedule was dependent upon reciprocal commitments by the CSL. Despite the CSL's failure to meet its commitments, we still delivered a working system ahead of the CSL's revised schedule.
 "HISI is requesting an audience with the CSL, the Lottery Commission, the California Attorney General's office and the California Governor's office to present the facts and to demonstrate that our system is operational and ready for acceptance testing by the CSL."
 -0- 4/22/93
 /CONTACT: John A. Ford, APR, vice president, Corporate Public Affairs, 404-885-8309 or, home, 404-297-1879/


CO: High Integrity Systems, Inc.; California State Lottery ST: California, Georgia IN: CNO SU: CON

BR-BN -- AT006 -- 9318 04/22/93 10:46 EDT
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Publication:PR Newswire
Date:Apr 22, 1993
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