Stock Code1371

14 May 2015

Successfully Expanded Terminal Business to Cover 11 Provinces and Became the Top Sports Lottery Terminal Supplier

China LotSynergy Holdings Limited (the "Company") is pleased to announce that Guangzhou Lottnal Terminal Company Limited ("Lottnal"), a subsidiary of the company, has successively won bids to supply Sports Lottery terminals to Shaanxi and Hunan provinces. So far this year, the Company has become the top Sports Lottery terminal supplier by sales volume.
In recent years, the Sports Lottery markets of Shaanxi and Hunan provinces have been on a high growth path. Over the past three years, Sports Lottery sales in the two provinces have, on average, exceeded a compound annual growth rate ("CAGR") of more than 35%, surpassing the roughly 20% CAGR growth of both the nationwide Sports Lottery market and the overall China lottery market. Shaanxi Sports Lottery sales reached RMB 4.1 billion in 2014, representing growth of 83.5% year-on-year ("YOY"); from January to March 2015, it maintained sales growth of 85% YOY. Hunan Sports Lottery sales reached nearly RMB 6.0 billion in 2014 and represented growth of 62.5% YOY, ranking 13th nationwide by sales
growth.

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Stock Code1371

14 May 2015

With the addition of Shaanxi and Hunan, the Company has successfully expanded its Sports Lottery terminal business to cover 11 provinces and regions across China. So far this year, the Company has secured an approximately 32% share of the total purchase volume of Sports Lottery terminals nationwide, and has become the top Sports Lottery terminal supplier.
The Company launched its Sports Lottery terminal supply business in 2013. In 2014, it advanced to become a top three supplier, and in only two years' time, secured its position as the industry leader in 2015. This is a result of the Company's many years of focus on the public welfare lottery industry, and reflects the continued popularity of the China LotSynergy brand. Faced with increasingly fierce competition in the Sports Lottery market, the Company will redouble its efforts to continuously strengthen and expand its competitive advantages, accelerate expansion into new markets and maintain its industry leading position, in order to contribute
to the Chinese public welfare lottery market.

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