15th August 2012 Mr.

Pete Tartline Executive Deputy Secretary Office of the Budget Commonwealth of Pennsylvania 7th Floor Verizon tower 303 Walnut Street Harrisburg, PA 17101-1825 717-787-2542 petartline@pa.gov Dear Mr Tartline and Mr Collins Withdrawal from the Pennsylvania Lottery Private Management Agreement (PMA) Process Tatts Group Limited, through its Qualified Bidder, Tatts Lotteries Bid Co Pty Ltd (collectively, Tatts) regretfully advises that it has officially withdrawn from the Pennsylvania Lottery PMA process. This letter follows our recent telephone discussions on this matter. Tatts has taken this course of action because the last draft of the PMA provided to bidders had not progressed sufficiently from the Illinois PMA model and did not, in our view, provide an adequate commercial environment for Tatts to pursue. While the extension of the term to 30 years was a very positive move, we believe the model reflected in the most recent draft had many commercial shortcomings and required further structural changes to deliver a better model for the Commonwealth, the long term benefit of the Pennsylvania Lottery, and the potential Private Manger. The progress of key issues in the last draft of the PMA and the inclusion of some retrograde new clauses, did not give us the necessary confidence that an appropriate outcome could be achieved. Accordingly we concluded that allocating significant resources to this project in light of the project timetable would not ultimately result in a viable operational opportunity for Tatts. We wish the Commonwealth all the best in its pursuit to engage a suitable Private Manager who will deliver long term benefits to both the lottery and the Commonwealth. We will watch with interest to see the final outcome. Yours sincerely, Mr. Robert K. Collins Managing Director Greenhill & Co. 155 North Wacker Drive Floor 45 Chicago, IL 60606 UNITED STATES OF AMERICA rcollins@greenhill.com

FRANCIS CATTERALL Executive General Manager Corporate Strategy