Economic Overview & XXX Market Potential

1. Agenda 1. MARKET POTENTIAL 2. COMPANY HISTORY 3. MARKETING 4. OPERATIONS 5. DISTRIBUTION 6. COMPETITION 7. REGULATORY FRAMEWORK 8. FINANCIAL PERFORMANCE ANALYSIS

2. Agenda 1. MARKET POTENTIAL • Economic Overview • XXX Market 2. COMPANY HISTORY 3. MARKETING 4. OPERATIONS 5. DISTRIBUTION 6. COMPETITION 7. REGULATORY FRAMEWORK 8. FINANCIAL PERFORMANCE ANALYSIS

3. Economic Overview – Latin America Latin America Nominal GDP (US$ billion) 1980-1990 Latin America Nominal GDP (US$ billion) 1990-2001 Real GDP CAGR 1980 – 1990 0.9% Real GDP CAGR 1991 – 2001 +3.0% The earliest of the “new policies” implemented in Latin America began twenty years ago...the difference between ‘then’ and ‘now’ is striking…and the process is continuing Source: WEFA, Cepal

4. Economic Overview – Latin America Latin American Average Fiscal Deficits and Inflation (% of GDP - CPI Change) 1980-1990 1991-2001 461% The decline in the rate of inflation - from hyperinflation to manageable inflation - across Latin America provided an important impetus to the development of international investment interest in Latin American businesses and equity markets Source: WEFA

5. Economic Overview – Latin America Expected Mid Term Economic Growth(a) Latin America Europe Asia & Australia USA (a) DRI WEFA, Economist Intelligent Unit, World Bank, IMF World Economic Outlook Data Base

6. Controlled Monetary & Fiscal Policies Asian Crisis and Natural Hazards Economic Overview – XXX During the first half of the 90’s the Government implemented controls to monetary and fiscal policies which paved the way for economic recovery MARKET POTENTIAL Nominal GDP(a) (US$ billions) Real GDP CAGR (1993-2001) 5.6% XXX recommenced its economic growth during the last decade, interrupted only in the 1998-2000 period due to the Asian and Russian financial crisis and natural hazards like El Niño Source: WEFA, estimates based on comparable Latin American countries

7. XXX Annual Inflation(a) Net Foreign Direct Investment as % of GDP(b) (1998-2001) Economic Overview – XXX MARKET POTENTIAL Average annual foreign direct investments in XXX from 1994 to 2001 was almost $2 billion XXX’s economic recovery has been accompanied by decreased inflation and controlled government spending, which has attracted substantial foreign direct investment... (a) Source: WEFA (b) OECD, World Bank, IMF and WEFA

8. Economic Overview – XXX MARKET POTENTIAL Summary Statistics (2001)Population: 26 million Nominal GDP: US$54 Billion GDP/Capita: US$2,073Inflation: 1.3% XXX’s Expected GDP Growth and Inflation The Government’s current emphasis on macroeconomic stability, combined with the 1990’s economic structural reforms, has set the stage for renewed economic growth Source: WEFA, estimates based on comparable Latin American countries

9. Economic Overview – XXX MARKET POTENTIAL XXX’s Expected Nominal GDP Per-capita (US$) Expected Real Per-capita Disposable Income Growth (%) Nominal Per-Capita GDP CAGR (2002-2007) 3.61% Average annual foreign direct investments in XXX from 1994 to 2001 was almost $2 billion XXX’s economic recovery has been accompanied by decreased inflation and controlled government spending, which has attracted substantial foreign direct investment... Source: WEFA, estimates based on comparable

10. Agenda 1. MARKET POTENTIAL • Economic Overview • XXX Market 2. COMPANY HISTORY 3. MARKETING 4. OPERATIONS 5. DISTRIBUTION 6. COMPETITION 7. REGULATORY FRAMEWORK 8. FINANCIAL PERFORMANCE ANALYSIS

11. XXX Market Potential MARKET POTENTIAL • Three methodologies have been used to estimate market size • Comparable country XXX market size • XXXvian demographic analysis • Third Party Studies

12. XXX Market Potential MARKET POTENTIAL GDP per Capita, 2001(a)(US$) Higher Income Countries Lower Income Countries XXX XXX per Adult, 2001(b)(US$) XXX underdeveloped XXX sector is evidenced by the higher XXXs per adult in countries with less per capita income (a) Source: WEFA 3Q, 2002 (b) Global XXXting & Gaming Consultants

13. XXX Market Potential – Lower Income Countries Gross XXX Sales by Country(a)(in millions of US$) Total Adult Population(a)(in millions) Average XXX XX per Adult, 2001(US$) Estimate of XXX’s XXX Market Potential(US$) Average $8.6 Minimum Potential in 10 years $145 million Growth from Today 16% per Year (a) Source: WEFA 3Q, 2002 and Global XXXting & Gaming Consultants

14. XXX Market Potential – Higher Income Countries Gross XXX Sales by Country(a)(in millions of US$) Total Adult Population(a)(in millions) Average XXX XXX per Adult, 2001(b)(US$) Estimate of XXX’s XXX Market Potential(US$) Average $15.2 Minimum Potential in 10 years $259 million Growth from Today 22% per Year (a) Source: WEFA 3Q, 2002 and Global XXXting & Gaming Consultants (b) Excludes Uruguay and Argentina from Average

15. XXX Market Potential MARKET POTENTIAL

16. (a) XXX Market Potential MARKET POTENTIAL Summary of Market Size Estimate(millions of US$) Average Market Size $150 million to $250 million (a) Public statements by XXX companies

17. Agenda 1. MARKET POTENTIAL 2. COMPANY OVERVIEW 3. MARKETING 4. OPERATIONS 5. DISTRIBUTION 6. COMPETITION 7. REGULATORY FRAMEWORK 8. FINANCIAL PERFORMANCE ANALYSIS

18. Agenda 1. MARKET POTENTIAL 2. COMPANY OVERVIEW • History • Product Line • Organization • Core Processes 3. MARKETING 4. OPERATIONS 5. DISTRIBUTION 6. COMPETITION 7. REGULATORY FRAMEWORK 8. FINANCIAL PERFORMANCE ANALYSIS

19. History COMPANY HISTORY • XXXX, founded by XXX in 1994, has become the undisputed leader in the gaming industry in XXX • Today, XXXX controls over 95% of the XXXvian XXX market with its best selling brands XXX, XXX and XXX • XXXX’s network of over 1,400 exclusive points of sales (“POS”) covers over 80% of the country’s most populated areas and distributes the Company’s XXX XXX products • POS are strategically located in highest-traffic venues

20. History COMPANY HISTORY • In its eight years of operations, XXXX has invested over $126 million in building a solid brand name and market position • XXX over $84 million in XXXs • Invested $20 million in advertising • Invested $22 million in infrastructure • XXXX has contributed over $13 million to the XXX of XXX and XXX, resources that have funded important welfare & charity activities in their jurisdiction • The company employs 99 people directly and an additional 700 under its distribution contracts • In 2000, XXX was XXX the International XXX XXX XXX as the “XXX” of the year, in recognition to the brand’s value and trajectory

21. History COMPANY HISTORY

22. Agenda 1. MARKET POTENTIAL 2. COMPANY HISTORY • History • Product Line • Organization • Core Processes 3. MARKETING 4. OPERATIONS 5. DISTRIBUTION 6. COMPETITION 7. REGULATORY FRAMEWORK 8. FINANCIAL PERFORMANCE ANALYSIS

23. Electronic XXX Umbrella Brand: XXX First electronic XXX in XXX Absolute leader in the XXX market Offers the highest XXXs in the country Offers XXX XXXs Mass communication of XXXs and XXXs Mass distribution through one of the largest sales forces in the country XXX XXX Umbrella Brand: XXXXXX “Scratch-and-XXX” XXX Launched in May 1998 and re-launched in Nov. 2000 with the support of SCIXXXs XXXX Frequency of XXXs on average every 3.5 XXXs Offers XXX XXXs only Distribution through XXX’s traditional channel and direct institutional sales Business Lines COMPANY HISTORY

24. SUNDAY XXX Traditional XXX XXX Weekly Sunday XXX at 11:00 p.m. 6 XXXs of 45 Starting XXX at S/.1,000,000 No cap on maximum XXX Estimated weekly XXX increase is XXX 6 XXXs required to XXX first XXX XXX XXXs for 5 and 4 XXXs Additional XXX at 2 and 3 XXXs (free XXX) XXX Price is S/.3.00 XXX statistics 2002: Average XXX XXX offered: S/. 3.7 million XXX XXXs XXX: S/. 19.8 million Total XXXs XXX: S/. 28.0 million Electronic XXX Products COMPANY HISTORY

25. XXX Offered with at least two Sunday XXX XXXs in a single XXX XXX At no additional cost to Sunday XXX XXX Simultaneous XXXing with XXX XXXing of one additional XXX to find a XXX with 6 XXXs of the Sunday XXX US$10,000 XXX offered to XXXs of 6 XXXs with the seventh XXX XXX or XXXs receive their 5 XXX XXX and the XXX XXX This addition to the XXX XXX has allowed an increase in the XXX per XXX index; the result has been a higher XXX of XXX that place at least two XXXs XXX statistics 2002: Average XXX index: 1.7 XXXs per XXX Total XXX XXXs:12 Total XXXs XXX: S/. 424 thousand Electronic XXX Products COMPANY HISTORY

26. XXX Promotional modality of the Sunday XXX XXX of additional XXXs one by one, until obtaining at least one 6-XXX XXX. Under this modality, XXXs have received XXXs between S/. 100,000 and S/. 500,000 Promotion re-launched in December 2002 with a variation: 4 additional XXXs are XXX simultaneously in the event of no 6-XXX XXX. All XXX that complete 6 XXXs from the 10 XXXn XXXs, XXX a S/. 100,000 XXX The re-launched promotion has received highly positive feedback; has created the perception of increased XXX XXXs XXX statistics 2002: Total “XXX” XXXs: 325 Total XXXs XXX: S/. 2.4 million Electronic XXX Products COMPANY HISTORY

27. XXX Traditional XXX XXX Weekly Thursday XXX at 10.00 p.m. 6 XXXs of 40 Starting XXX of S/.200,000 Estimated weekly XXX increase of S/.50,000 6 XXXs required to XXX first XXX XXX XXXs for 5 and 4 XXXs Additional XXX at 2 and 3 XXXs (free XXX) XXX price of S/.2.00 Forced XXX XXX every 5 weeks; XXXs receive 50% of XXX XXX statistics 2002: Average XXX XXX offered: S/. 370 thousand XXX XXXs XXX: S/. 3.3 million. Total XXXs XXX: S/. 4.7 million Electronic XXX Products COMPANY HISTORY

28. XXX-XXX XXX XXX offered to all XXXs with at least two XXX XXXs XXXs will be XXXn until one or more XXXs are found US$ 5,000 XXX XXX among all XXX that XXX 6 XXXs with additional XXXs XX after the initial XX XXXs This modality XXX XXX XX two or more XXXs in a single XXX XXX statistics 2002: Average XXX index: 1.8 XXXs per XXX XXX XXXs: 114 Total XXXs XXX: S/. 914 thousand Electronic XXX Products COMPANY HISTORY

29. JUEGA 3 XX with a XXX with XXX containing ten XXXs XXX must XXX three XXXs, each one, in each column XXX XXX, with no need of choosing a XXX option: XXX: 3 XXXs in order XXXX: 2 XXXs in the last XX XXX: One XXX in the XX The XXX can choose the amount of XXX: S/.2.00, S/.5.00, S/.10.00 or S/. 20.00 It is also possible to XXX a XXX of XXXs XXX statistics 2002: Straight XXXs: 495 Straight XXXs XXX: S/. 272 thousand Total XXXs XXX: S/. 700 thousand Electronic XXX Products COMPANY HISTORY

30. XXX-XXXs “Scratch and XXX” “XXXX” modality XXXX XXXs On average, 1 of 3.3 XXXs XXXX XXXX Immediate XXX XXX of XXXs Constant renewal of XXX XXX to retain consumer interest Price: S/1.00 XXX statistics 2002: XXX XXXs: 23 Total XXXs XXX: S/. 4.3 million XXX XXX Products COMPANY HISTORY

31. Agenda 1. MARKET POTENTIAL 2. COMPANY HISTORY • History • Product Line • Organization • Core Processes 3. MARKETING 4. OPERATIONS 5. DISTRIBUTION 6. COMPETITION 7. REGULATORY FRAMEWORK 8. FINANCIAL PERFORMANCE ANALYSIS

32. GENERAL MANAGER ( 1 ) OPERATIONS COMMERCIAL FINANCE & ADM. MANAGER MANAGER MANAGER ( 1 ) ( 0 ) ( 1 ) SECRETARY LAWYER ASSISTANT SECRETARY ( 1 ) ( 1 ) ( 2 ) LOGISTICS SYSTEMS SYSTEMS SUPPORT SALES MARKETING TREASURY BUDGETING & GENERAL GENERAL TECHNICAL SUPPORT LEADER LEADER LEADER LEADER ANALYST PURCHASING ACCOUNTING SERVICES ( 1 ) ( 1 ) ( 1 ) ( 1 ) ( 1 ) ANALYST ( 1 ) ( 0 ) SUPERVISOR LEADER ( 1 ) ( 1 ) ( 1 ) LOGISTICS SENIOR SUPERVISOR SUPPORT SALES MARKETING ASSISTANT ASSISTANT ASSISTANT RECEPTIONISTS ASSISTANT ANALYST DBA ( 1 ) ( 1 ) SUPERVISOR ASSISTANT ( 6 ) ( 1 ) ACCOUNTING ( 3 ) ( 6 ) ( 1 ) ( 2 ) ( 3 ) ( 1 ) DRIVER SYSTEMS RECEPTIONIST ASSISTANT SALES ASSISTANT MESSENGER ( 1 ) OPERATION ( 3 ) ( 2 ) ASSISTANT ( 3 ) ( 2 ) ( 8 ) ( 2 ) WAREHOUSE COMPUTER ENGINEERS JANITOR CLERK ANALYST ( 17 ) ( 1 ) ( 1 ) ( 5 ) ANALYST ASSISTANT ( 2 ) ( 5 ) Total Employees: 99 DRIVER ( 5 ) Organization COMPANY HISTORY

33. Agenda 1. MARKET POTENTIAL 2. COMPANY HISTORY • History • Product Line • Organization • Core Processes 3. MARKETING 4. OPERATIONS 5. DISTRIBUTION 6. COMPETITION 7. REGULATORY FRAMEWORK 8. FINANCIAL PERFORMANCE ANALYSIS

34. Agenda 1. MARKET POTENTIAL 2. COMPANY HISTORY 3. MARKETING 4. OPERATIONS • Core Operation Processes • Operations Divisions • Objectives 2003 5. DISTRIBUTION 6. COMPETITION 7. REGULATORY FRAMEWORK 8. FINANCIAL PERFORMANCE ANALYSIS

35. Business Process OPERATIONS $ $ PointsOf Sale XXX Payment Supplying Sales Scrutiny Technical Support AdministrativeSupport Commercial Support

36. Business Process OPERATIONS $ $ PointsOf Sale XXX Payment Supplying Sales Scrutiny • Points of Sale • Territory analysis • Distribution contracts • XXX configuration • Point of sale installation • Point of Sale closing • Supplying • Consumption planning • Securities and supplies shipping • Securities and supplies Distribution • Asset distribution and control • Consumption analysis • Sales • XXX opening • XXX sales • XXX collection and control • Annulations conciliation • Sales conciliation Scrutiny • Information Generation • XXX • XXXs calculation • XXXs archive generation • XXXs list XXX Payment • Upload of XXXs archive • Point of sale price payment • XXX payment • XXXing of XXXs events

37. Agenda 1. MARKET POTENTIAL 2. COMPANY HISTORY 3. MARKETING 4. OPERATIONS • Core Operation Processes • Operations Divisions • Objectives 2003 5. DISTRIBUTION 6. COMPETITION 7. REGULATORY FRAMEWORK 8. FINANCIAL PERFORMANCE ANALYSIS

38. Technical Support OPERATIONS Mission “To provide highest standard services while optimizing the use of resources” Vision “People who provide services of excellence”

39. Technical Support OPERATIONS Organizational Structure Key Divisions Information Systems Technical Center Logistics Call Center XXX Operations and Information Systems Manager 1 2 XXXX Secretary –Receptionist Service Center 3 4 XXXX Technical ServiceManager XXXX Logistics Manager XXXXInformation Systems Manager

40. Information Systems 1 OPERATIONS • Division Highlights • Expertise in managing accelerated processing requirements – capacity to process up to 2,000,000 XXXs. Ability to process, validate and authenticate 1,200,000 in less than three hours • In-house software developed specifically to serve XXXX’s information systems specific needs – all software, with the exception of the XXX management software have been manufactured in-house • Accelerated closing process and scrutiny has allowed for extended sales period (up to 3:00 pm on Sundays) on highest-traffic locations which represent 80% of sales • High process reliability and data integrity • Sophisticated cross-checking process

41. XXX Information Systems Manager XXX Technology Head XXX XXX Operation XXX Support Engineering XXX Systems Development XXX Systems Production Information Systems 1 OPERATIONS Division Structure

42. Information Systems 1 OPERATIONS • Division Activities • Development • Attend the company’s information needs through the creation of new software program products or maintenance/upgrade of existing ones • XXX Operation • P.O.S. setup • XXX process and data integrity • Operation XXX central software • Creation of XXXs file

43. Information Systems 1 OPERATIONS • Division Activities • Systems production • Manage production systems environment • Database administrator • Control quality of software changes • Engineering support • Network administration and security • Internal customer support • Assess new technology options for the business • Telecommunications support

44. Information Systems 1 OPERATIONS • Data Integrity Check • “The outmost and most critical task undertaken before the XXX is to guarantee that every single XXX XXX placed by the customer is effectively included in the XXX.After the XXX, integrity means to guarantee an error free XXXs file” • Parameters checked: • Sales opening and closing information per POS • XXX of XXXs per POS • Internal XXXX of every XXX XXX for every POS • Last internal XXX XXX XXX of previous XXX versus first internal XXX XXX XXX of current XXX • XXX of XXXs recorded by report files versus gross total XXXs recorded in transaction files • Format integrity of every single transaction recorded • Data base readiness and performance

45. Technical Service 2 OPERATIONS • Division Highlights • Nationwide coverage of POS network • Reduced maintenance costs per XXX by over 30% - from $496 (price of outsourcing) to an average over the last three years of $337 per annum • Cost reductions based on replacement of individual parts instead the full units • Many parts are currently manufactured by local providers reducing costs even further • Reduced response time to client service requirements from 4 hours to 1.5 hours in XXX and from 48 hours to less than 30 minutes in the interior of the country (and 5 hours for remote POS locations)

46. Technical Service 2 OPERATIONS Division Structure XXX Technical Center Manager Technical Rep FIELD ( 4 ) Drivers FIELD ( 5 ) Technical Rep SHOP ( 9 ) XXX Coordinator of Province Service Rep PROVINCE ( 9 )

47. Technical Service 2 OPERATIONS • Division Activities • Corrective Maintenance • Nationwide solutions to hardware and software problems • Preventive Maintenance • Continuous nationwide field maintenance • Parts Recovery • Call Center Management

48. Technical Service – Repair Requests DISTRIBUTION Repair Requests 2002 (XXX of repairs) • Over 11,400 repairs were managed by the Company’s Technical Center in 2002

49. Logistics 3 OPERATIONS • Division Highlights • Efficient XXX repair facility – dramatic cost reductions through specialization and focus on repairing individual parts • Short response time: • Retrieval of damaged XXX • Supply POS locations • Secure distribution and accounting systems for XXXXXX XXX XXX XXXs

50. Division Structure XXXX Logistics Manager Logistics Analyst ( 1 ) Warehouse Clerk ( 2 ) Logistics Dispatch Assistant ( 1 ) Logistics Field Assistant ( 2 ) Driver ( 1 ) Janitor ( 1 ) Logistics 3 OPERATIONS