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Non-Tech : International Lottery and Totalizator Systems (ITSI) -- Ignore unavailable to you. Want to Upgrade?

To: Ted Campbell who wrote (80)	5/8/1998 9:05:00 PM
From: Ted Campbell	Respond to of 160

Well, it seems as though only my second post went through the system. I hate it when that happens!! I don't know what happened, but I'll just have to try again. Anyway my first post started out by saying that I had had a rather lengthy conversation with Dennis Klahn (Investor Relations at ITSI) on Wednesday. The following, with the exception of post #80 is a summary of the relevant parts of that conversation. I told him that I was concerned with the price of the stock and the prospects for the company We then proceeded to cover the company's prospects. Post #80 covers some of them, but of more significance near term were the following. (1) ITSI is still working hard in South Africa. The South Afri- can government finally passed legislation legalizing a lottery there. However, the bidding process is taking a long time, so we'll just have to wait and see what happens. (2) The rumored large contract with the Royal Hong Kong Jockey Club is just that...strictly a rumor. ITSI's equipment there has held up so well over the years, that the RHKJC is only going to upgrade a small portion of the equipment, and that will only amount to $1,000,000 to $2,000,000. The news starts getting better from here on out though: (3) To my surprise, Mr. Klahn said that ITSI currently has a bid in for a state lottery contract in the USA!! They will probably bid on a second state's lottery in the near future. They should hear back on their current bid within one to two months. (4) The best news of our conversation related to South Wales, Australia. They have taken two bids to upgrade and expand their cur- rent lottery system. The two bidders are GTech and ITSI. ITSI is the incumbent, as their products are currently being used over there. Mr. Klahn said that the contract will be worth between $20 million to $30 million, and that the some of the revenues from that contract would occur in 1998 with the rest coming in 1999. He said that they should hear from South Wales by July/August. I'm going to be saying lots of prayers and keeping my fingers crossed between now and August!! The shareholders of ITSI have had their patience severely tested over the last few years, but maybe soon our patience will be richly rewarded! If either (3) or (4) above are awarded to ITSI, the price of the stock will be much higher than it is now. Sorry these posts will be backwards, but I hope I've given some insight as to what's happening these days. In the meantime...... Keep the faith, Ted C