CLS is principally engaged in the provision of lottery system and equipment, related technology and consultancy services in the PRC. It has the following four major business segments:

1. Video Lottery Terminal

CLS is mainly engaged in research and development, manufacture and provision of Video Lottery Terminals (“VLTs? to Beijing Lottery Online Technology Co., Ltd. (“CLO?. CLS’s production plants and research and development centres are located in Dongguan, Guangdong and Beijing. CLO is an innovative technology enterprise established by China Welfare Lottery Issuance and Administration Centre under the approval of the Ministry of Civil Affairs of the PRC and is principally engaged in the development, installation and maintenance of the instant lottery sales system of the China Welfare Lottery Online.

China Welfare Lottery Online Halls

2. KENO Gaming System and Terminals

CLS’s operations in KENO gaming system, terminals and the provision of related technology in the PRC are operated through a joint venture between the subsidiaries of CLS and GTECH Corporation.

3. Traditional Computer Lottery System and Terminals

The traditional computer lottery system and terminal business is operated through Champ Mark Investments Limited and its subsidiaries (the “CMIL Group?. (Guangzhou San Huan Yong Xin Technology Company Limited*) (“GZSH? and (Guangzhou Lottnal Terminal Technology Company Limited*) (“GZL?, subsidiaries of the CMIL Group, are engaged in the research and development, manufacture, supply and maintenance of the core operating systems and terminals of traditional computer lottery in the PRC. The Companies own a number of important patents and intellectual property rights. Currently, GZSH is one of the three largest suppliers in the PRC which specialise in the provision of lottery system and equipment to the provincial welfare lottery issuing authorities, while GZL is a well-known manufacturer of lottery ticket scanners and readers in the PRC.

4. Explore new horizons through international cooperation

CLS and International Game Technology (“IGT?, an international leading player of the gaming industryhas formed a strategic alliancewhich enables CLS to access advanced international gaming technology as well as operation and management expertise in the industry to support its business expansion in the PRC lottery market. A joint venture has been established by CLS and IGT to develop new lottery-related business in China.