PRESS RELEASE ON CONSTITUTIONAL RIGHTS

FOR IMMEDIATE RELEASE

FOR MORE INFORMATION CONTACT:
Roger J. Marzulla:
(202) 822-6760

July 25, 2006

OWNER OF TOUCHPLAY LOTTERY MACHINES ASKS EIGHTH CIRCUIT TO UPHOLD ITS CONTRACTUAL AND CONSTITUTIONAL RIGHTS

St. Louis, MO -- Hawkeye Commodity Productions, Inc. (HCP) has filed an appeal asking the United States Court of Appeals for the Eighth Circuit to reverse an Iowa federal district court’s refusal to enjoin the State’s enforcement of a May 4, 2006 ban on use of TouchPlay lottery machines in Iowa, arguing that the State’s ban on the use of TouchPlay lottery machines unconstitutionally interferes with HCP’s contract rights, property rights, and due process and equal protection rights.

“The State’s ban on the use of TouchPlay lottery machines has been financially devastating for HCP,” explained Roger J. Marzulla, an attorney for HCP. “HCP owns 724 TouchPlay machines, and operated 572 of them in approximately 187 business locations throughout the State until the May 4 ban took effect. HCP spent $4.7 million to purchase and install the TouchPlay Machines, and it spent more than $2.1 million in related expenses--such as paying business premises owners and servicing and maintaining the TouchPlay Machines.” Mr. Marzulla added, “HCP is also still on the hook financially for $3.1 million in debt that it incurred in the purchasing the TouchPlay Machines.”

Opponents of the TouchPlay ban note that the ban inexplicably cuts off $40 billion in revenue that the State anticipated earning from the continued use of TouchPlay. The State uses lottery earnings to pay for educational, natural resources, health, family services, and public safety programs. Although the Iowa Legislature banned use of TouchPlay machines, similar lottery games remain legal in Iowa, such as Instant Win, Pull-Tab, Powerball, Hot Lotto, Pick 3, Pick 4, and Iowa’s $100,000 Cash Game. A decision in this case is expected by the end of the year.

Marzulla & Marzulla is a Washington, D.C.-based law firm with a national practice emphasizing constitutional, property rights, environmental, and regulatory law. For more information about this case visit: www.marzullalaw.com.

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