urthermore, the company is proud to announce that instant ticket retail sales in the PRC exceeded us$ 1.4 billion in calendar year 2008.
Through a joint venture with a local partner, SGC, in conjunction with the CSLP, established a secure state of the art instant ticket manufacturing facility at an existing CSLP location in Beijing that now has production capacity of approximately four billion 2" x 4" equivalents.
The company anticipates adding another four billion of ticket printing capacity in the first half of 2009 that will allow SGC to meet existing demand in the market. The facility will be operated by the joint venture for a 15-year period. Revenues to Scientific Games on both the instant ticket contract and the related validation system contract are based on a percentage of retail sales.
Michael Chambrello, President and COO of Scientific Games commented, "We are very excited that after months of hard work, SGC and CSLP were able to create the first state of the art instant lottery ticket printing facility in the PRC, and produce high-quality instant tickets locally for the first time. This facility will provide the foundation for CSL’s instant ticket lottery to meet the robust post-Olympic demand in the market and grow for years to come."