Mr. Doug Pollard reports

POLLARD BANKNOTE AWARDED PRIMARY CONTRACT FOR THE SUPPLY OF SCRATCHERS BY THE CALIFORNIA LOTTERY

Following a competitive procurement process, the California Lottery has named Pollard Banknote Ltd. the primary contractor for Scratchers products and related services. The contract award was formally approved by the California Lottery Commission at its Sept. 25, 2025, meeting. The new primary contract is expected to commence Dec. 1, 2025, and includes an initial term of six years with the option to extend for up to six additional years. As the primary contractor, Pollard Banknote anticipates providing approximately 70 per cent of the lottery's Scratchers games over the life of the contract.

Pollard Banknote has supported the lottery for over 25 years as a secondary supplier, providing instant tickets and related marketing services. Notably, Pollard Banknote has printed the majority of the lottery's Crossword games, the fastest-growing category in the Scratchers portfolio. The Pollard Banknote-designed Mystery Crossword ranked as the lottery's most popular Scratchers game in 2024 and is consistently one of the lottery's top-three games in terms of sales, generating over $6-billion since its first launch. As the new primary contractor, Pollard Banknote will bring its full suite of innovative solutions to help the lottery enhance all facets of its instant ticket business. In addition to providing outstanding games, print innovations and licensed game promotions to responsibly attract and engage new players, Pollard Banknote will offer sales-driving retail initiatives and portfolio-wide optimization to support the lottery's continued growth and mission to generate supplemental funding for California public education.

"We are extremely excited to expand our relationship with one of the largest and most successful lotteries in the world," said Doug Pollard, co-chief executive officer, Pollard Banknote. "This expansion into the role of primary contractor marks an exciting new chapter in a decades-long partnership that has delivered a range of innovative and groundbreaking instant ticket experiences to raise funds for public education. As the lottery celebrates its milestone 40th anniversary, we are thrilled to deepen our collaboration and look forward to many more years of shared success providing fun and engaging entertainment to Californians."

The California Lottery was established in 1985 with the mission to provide supplemental funding for California's public schools, colleges and universities. Since its inception, the lottery has contributed more than $46-billion to education across the state. Operating without public funding, the lottery returns approximately 95 cents of every dollar spent on its games back to the community through prizes, retailer compensation and education funding. The lottery is committed to responsible gaming and was the first in the nation to receive the highest level of internationally recognized certification for responsible gaming practices.

About Pollard Banknote Ltd.

Pollard Banknote is a partner of choice to responsibly drive revenues for good causes both at retail and through digital channels for lotteries and charitable gaming markets worldwide. It empowers its customers to maximize success through innovative offerings, strategic marketing, portfolio management, analytics, and end-to-end warehousing and logistics services. It offers an extensive high performing gaming lineup, including instant tickets, pull-tab tickets and vending machines, the full range of paper and electronic bingo products, and cutting-edge electronic pull-tab gaming solutions. Its Schafer Retail Solutions + portfolio delivers impactful retail ticket merchandising and in-lane options. Its player-facing digital suite includes apps, websites, loyalty programs and the transformative Pollard catalyst gaming platform that powers its turnkey iLottery program. Established in 1907, Pollard Banknote is owned approximately 64 per cent by the Pollard family and 36 per cent by public shareholders, and is publicly traded on the Toronto Stock Exchange.

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