Message from the President and CEO

Satisfactory Results for the First Quarter

Loto-Québec’s consolidated revenues for the period spanning April 1 to June 28, 2010 reached a total of $925 million, while net earnings amounted to
$348 million. This performance slightly exceeded the targets set in the Québec Government’s last budget, which included a plan to reduce expenses by
$5 million. In accordance with expectations, the results show a 4.4% decrease in consolidated revenues and a 5.3% drop in net earnings as compared to the first quarter of 2009-2010.

The declining trend observed in fiscal 2009-2010 was confirmed on the whole within all activity sectors, attributable in part to the unfavourable economic context. Far from seeking one sole solution, with the support of the Government, the Corporation will be initiating various major projects this fall, such as the introduction of online gaming and the launch of an innovative game concept by the Société des bingos in aid of non-profit organizations.

You may consult the complete first quarter report.

Lotto Max: Enjoying Ever Increasing Popularity!

This past June, Lotto Max moved into Maxmillions mode on four consecutive occasions, thus shattering the record for the largest prize pool ever offered by a Canadian lottery week after week. Sparking tremendous enthusiasm among consumers, the product also generated record sales representing 24% of quarterly revenues. Moreover, a total of
23 Maxmillions have been won in Québec during the first three months of the present quarter.

This past August 20, a record prize of $37 million was claimed in the province! Having marked its first anniversary, over the course of a two-week period, Lotto Max awarded total jackpots of $64 million in Québec alone.

Modernization Work Proceeds at the Casino de Montréal

Initiated last fall, the refurbishment of the
Casino de Montréal is progressing nicely, and the establishment is doing very well given the extensive changes underway. Indeed, the Casino is meeting a formidable challenge in continuing to welcome its clientele while this major work goes on. The project represents a total investment of some $306 million over a four-year period.

Casino de Mont-Tremblant Celebrates Its First Anniversary!

This past June 24 marked the Casino de Mont-Tremblant’s first anniversary, and a number of celebrations were organized for the occasion. General Manager Kevin Taylor underlined the large number of visitors — more than 700,000 — welcomed by the gaming house during the course of the year despite the difficult economic context affecting the tourism industry. He also unveiled the development project for the Altitude Restaurant, which should be opening its doors to its first patrons this fall and will serve as a major addition to the Casino’s numerous other attractions.

Les Belles-Sœurs: A Resounding Success!

Michel Tremblay’s stage play, Les Belles-Sœurs, has been magnificently reborn as a musical production thanks to a collaborative effort between Loto-Québec, Théâtre d’Aujourd’hui and the Centre culturel de Joliette. Under the banner of the “Loto-Québec, Théâtre d’Aujourd’hui and Les Belles-Sœurs Marking 40 Years” celebration, this partnership is offering the Québec public a wonderful opportunity to discover or rediscover Tremblay’s cult classic. Several other performances are already planned through 2012 in various regions of the province. More information is available online at www.belles-soeurs.ca.

Alain Cousineau
President and Chief Executive Officer