Replies to post #5958 on Electronic Game Card, Inc (fka EGMIQ)

[CaesarStone]

Milestone Expectations

http://iancassel.com/2009/09/16/egmi-1-65-my-post-shareholder-meeting-thoughts/

[CaesarStone]

NEW CHINA Guidance for 2010

"....will review the Company's operations and discuss its strategic positioning in China and other developing areas, as well as establish the milestone expectations for the coming year...."

China: We have a MOU with China LotSynergy which Kevin stated he hoped to have closed by Tuesday’s shareholder meeting. He said that it would likely be closed in the next few weeks. China LotSynergy is the ONLY player in the China Welfare Lottery system. 9 billion scratch/win lottery tickets are sold annually in China. Half are welfare lottery tickets (4.5 billion) and the other half are Sports lottery tickets. IGT/GTECH a couple years back invested in China LotSynergy (own 15-20% I believe) so they would have an avenue to market their gaming products in China. However, only recently (July 1, 2009) has the China government cracked down on illegal lotteries which are 10x larger than the legal lottery system. The illegal lotteries were making it very hard for the legal lottery system to run profitably. In fact, the Chinese government has mandated that the legal lottery system DOUBLE in size over the next 12 months. Kevin stated that China LotSynergy would like to have our product ready by the World Fair 2010 (April 2010) where over 100 million tourists are anticipated to visit Beijing. China LotSynergy feels that our electronic game cards will have a material effect on expanding the lottery system in China. So what does material mean? Do we penetrate 10-20-30%. All I know is this. We are teaming up with the ONLY player in the Chinese Welfare Lottery System so our chances of penetrating the market are very good. Let’s say that the Chinese Welfare Lottery market grows to 6 billion cards/annually by the time our product is launched by April of next year. Let’s say we penetrate 5% of the market or 300 Million cards. I don’t know how much we will get per card, but let’s say we just get 10c per card. That is $30 Million in additional revenue and who knows how much of that could hit the bottom line. The point is that the potential for China to completely blow out EGMI’s 2010 expectations is very real.