ALPHARETTA, Ga. — July 23, 2008 — Alchemy3® today launched A3 Rewards, a new type of lottery prize package that will help lottery players stretch their entertainment budgets. The centerpiece of the A3 Rewards package is “Movie Nite,” a lottery prize of up to four movie tickets and concession dollars. Other A3 Rewards prizes include CDs and DVDs.

“This allows us to bring new elements to lottery prize packages that have been difficult or impossible to do in the past,” said David Schorr, Alchemy3’s chief executive officer and one of its three founders.

“Instant lottery games have always provided instant gratification, but now we can extend that to prizes other than cash. It's the first time lotteries have been able to accomplish that with this sort of efficiency and reach.”

For each lottery that uses A3 Rewards, Alchemy3 provides and manages a custom Web site. Players can enter codes from winning tickets and instantly print out or request by mail certificates they can redeem for movie tickets, concessions, DVDs or CDs that are instantly redeemable at local movie theaters and major retail outlets. The technology used for A3 Rewards has been used to operate similar customer loyalty programs for companies such as Starbucks, General Motors, Best Buy and Kodak.

"We’ve thought through how to make this successful, and A3 Rewards is very easy for lotteries to work into an instant game,” Schorr said. “Alchemy3 delivers a completely integrated game package, including a custom Web site where players can redeem their prizes. You scratch off a winner, go to the site and enter your code, instantly print out your coupon, and you're off to the movies or to your local retailer to pick up your CD or DVD.”

The A3 Rewards program highlights Alchemy3’s unique combination of consumer marketing and lottery experience. Using a nationwide network of more than 35,000 movie screens and affiliations with retail chains such as Target, Kmart and Circuit City, A3 Rewards gives lotteries a way to offer popular prize packages redeemable at local retailers, and the program is easy to stage every step of the way. “A3 Rewards prize packages appeal to a broad range of consumers, and people will enjoy playing the games and winning these prizes over and over again,” Schorr said.

Quantum Loyalty Systems is Alchemy3’s exclusive Entertainment Rewards provider. With offices on every continent, Quantum is the No. 1 promotional movie-ticket provider in the world, with acceptance at 98.5 percent of all screens in the U.S. Quantum’s retail network includes every major media and entertainment retailer in the U.S, and more than 1,000 independent locations – virtually everywhere DVDs and CDs are sold.

“We have long believed that lottery players would find tremendous value in Entertainment Rewards, and we are thrilled to be working with Alchemy3 to bring these universally appealing, relevant rewards into the lottery category,” said Ron Randolph-Wall, chairman and CEO of Quantum and the inventor of universally accepted Entertainment Rewards.