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(Stock Code: 1371)

FURTHER WIN IN THE SUPPLY OF SPORTS LOTTERY TERMINALS TO ZHEJIANG PROVINCE

The Board is pleased to announce that Lottnal has won a bid to supply Sports Lottery terminals to Zhejiang Sports Lottery Administration Centre. This is the second win for Lottnal in the terminal procurement of the province.
The Board of Directors (the "Board") of China LotSynergy Holdings Limited (the "Company", together with its subsidiaries, the "Group") is pleased to announce that Guangzhou Lottnal
Terminal Company Limited (廣州洛圖終端技術有限公司, "Lottnal"), a subsidiary of the
Company, has won a bid to supply Sports Lottery terminals for the "Zhejiang Sports Lottery Administration Centre Terminal Equipment Procurement Scheme (浙江省體育彩票管理中 心購置彩票終端機設備項目採購)". Lottnal will sign the relevant supply contract with
Zhejiang Sports Lottery Administration Centre, to which it will provide the KT301 standard type lottery terminals.
This is Lottnal's second win in the terminal procurement of Zhejiang province, with its first win in December 2013. Lottnal grew with the development of the Sports Lottery terminal market in 2013, which entered a phase of expansion in 2014, and was accompanied by a significant increase in orders and a rapid rise in market share. The second win in Zhejiang province reflects Lottnal's success in securing a second round of Sports Lottery terminal procurement in each of the three provinces including Guizhou, Gansu and Zhejiang since the beginning of 2014, demonstrating the effectiveness of the Group's region-focused strategy. Following two years of hard work, management believes that Lottnal has gradually developed into an outstanding company that has earned the trust of China's Sports Lottery market and its clients.
Zhejiang is one of the key provinces in Sports Lottery, and its sales have continuously reached new highs, having ranked fourth in nationwide sales for consecutive years. Total Sports Lottery sales in Zhejiang province exceeded RMB 7 billion for the first time in 2012, broke through the RMB 8 billion mark in 2013, and reached RMB 4.93 billion in the first half of 2014.
With the launch of fixed-odds single match products and an increase in payout ratio of Single Match Games by China Sports Lottery Centre in the second half of 2014, management believes that China's Sports Lottery sales will enter a phase of significant growth. Correspondingly, the Group expects that overall market demand for Sports Lottery terminals will rise further. The Group will actively grasp this opportunity, by strengthening its brand advantages, further expanding its market share and striving to become a key participant in China's Sports Lottery market.

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By order of the Board

China LotSynergy Holdings Limited LAU Ting

Chairperson of the Board

Hong Kong, 19 August 2014

As at the date of this announcement, the Board comprises Ms. LAU Ting, Mr. WU Jingwei, Ms. CHAN Tan Na, Donna and Mr. LI Zi Kui as Executive Directors; Mr. HOONG Cheong Thard as a Non-executive Director; and Mr. HUANG Shenglan, Mr. CHAN Ming Fai and Mr. CUI Shuming as Independent Non-executive Directors.

* For identification purposes only

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