eLOT, INC.
                           CONSOLIDATED BALANCE SHEETS
                           (DEBTORS - IN - POSSESSION)

(In thousands, except for share and per share amounts)                September 30,           December 31,
                                                                          2001                    2000
                                                                      ------------            ------------
                                                                       (Unaudited)
ASSETS
- ------
CURRENT ASSETS:

   Cash and cash equivalents                                             $ 1,032                 $   5,731
   Accounts receivable                                                       393                       222
   Prepaid expenses and other current assets                                 499                       709
   Net assets of discontinued operations                                   2,725                     8,294
                                                                        --------                 ---------
   Total Current Assets                                                    4,649                    14,956

PROPERTY AND EQUIPMENT, net                                                4,288                     5,143
INTANGIBLE ASSETS, net                                                     1,189                     4,018
OTHER ASSETS                                                               1,511                     3,486
                                                                      ----------                ----------
                                                                        $ 11,637                  $ 27,603
                                                                        ========                  ========

LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
CURRENT LIABILITIES:
   Current portion of long-term debt                                  $      196                  $    240
   Accounts payable                                                        2,427                     1,841
   Accrued payroll and related costs                                         402                       838
   Accrued liabilities                                                     2,167                     2,083
                                                                      ----------                ----------
   Total Current Liabilities                                               5,192                     5,002

LONG-TERM DEBT                                                            13,462                    14,243
                                                                    ------------                  --------
    Total Liabilities                                                     18,654                    19,245
                                                                       ---------                  --------

STOCKHOLDERS' EQUITY:
    Preferred Stock                                                          280                       ---
    Common stock:  $.01 par value; 130,000,000 shares
        authorized; 87,465,425 and 69,645,441 issued and
        outstanding                                                          875                       696
    Additional paid-in capital                                            99,131                    91,911
    Accumulated other comprehensive loss                                    (618)                     (613)
    Accumulated deficit                                                 (106,685)                  (83,636)
                                                                       ---------                 ---------
    Total Stockholders' Equity (Deficit)                                  (7,017)                    8,358
                                                                        ---------                ---------
                                                                        $ 11,637                  $ 27,603
                                                                        ========                  ========




                           eLOT, INC.AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                           (DEBTORS - IN - POSSESSION)
                                   (Unaudited)




                                                                   Three Months Ended               Nine Months Ended
(In thousands, except for per share amounts)                          September 30,                   September 30,
                                                                ------------------------          -------------------
                                                                   2001        2000               2001             2000
                                                                   ----        ----               ----             ----

REVENUES                                                             $500          $308          $1,441           $558

COSTS AND EXPENSES:
    Prizes, content, advertising and promotion                        373           722             803          2,017
    General and Administrative                                      1,879         2,807           5,966          7,129
    Asset Impairment                                                6,356           128           6,722            128
    Reversal of Stock Compensation Accrual                            ---           ---            (500)           ---
    Depreciation and Amortization                                   1,563           707           4,013          1,394
                                                                    -----        ------           -----         ------
                                                                   10,171         4,364          17,004         10,668
                                                                   ------       -------          ------          -----
OPERATING LOSS                                                     (9,671)       (4,056)        (15,563)       (10,110)

INTEREST EXPENSE                                                     (395)         (391)         (1,239)        (1,193)
OTHER INCOME, NET                                                      47           176              11            980
                                                                 --------       -------        --------        -------
LOSS FROM CONTINUING OPERATIONS
    BEFORE INCOME TAXES                                           (10,019)       (4,271)        (16,791)       (10,323)

INCOME TAXES                                                          ---           ---             ---            ---
                                                                ---------      --------        --------       --------

LOSS FROM CONTINUING OPERATIONS                                   (10,019)       (4,271)        (16,791)       (10,323)

DISCONTINUED OPERATIONS:
     Income (loss) from discontinued operations                    (1,652)       (2,267)         (2,371)        (6,320)
    Gain (loss) on sale of discontinued operations,
    (net of tax provision of $15,924 for 2000)                        ---           ---          (3,886)           387
                                                                      ---      --------          -------        ------

    Loss from discontinued operations                              (1,652)       (2,267)         (6,257)        (5,933)
                                                                   -------        ------         -------       --------

NET LOSS                                                         $(11,671)   $   (6,538)       $(23,048)      $(16,256)
                                                                 ========    ===========       =========      =========

BASIC AND DILUTED LOSS PER SHARE:
    Loss from continuing operations                              $  (0.12)       $(0.07)         $(0.22)        $(0.16)
    Loss from discontinued operations                               (0.02)        (0.03)          (0.03)         (0.10)
    Gain (Loss) on sale of discontinued operation                     ---         (0.00)          (0.05)          0.01
                                                                      ---          -----          ------         -----
    NET LOSS PER SHARE                                           $  (0.14)       $ (0.10)         $(0.30)       $(0.25)
                                                                 ========        =======          ======        ======


AVERAGE COMMON SHARES OUTSTANDING:                                 86,191         65,623          77,682        64,682
                                                                   ======        =======          ======        ======







                                   eLOT, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                           (DEBTORS - IN - POSSESSION)
                                   (Unaudited)


(In thousands)                                                                           Nine Months Ended
                                                                                            September 30,
                                                                             -------------------------------------
                                                                                 2001                     2000
                                                                             -----------               -----------

CASH FLOWS FROM OPERATING ACTIVITIES:

    Loss from continuing operations                                         $  ( 16,791)              $  (10,323)
    Adjustments to reconcile net loss to net
      cash used in operating activities:
      Depreciation and amortization                                               4,013                    1,394
      Accretion on Debentures and Note Payable                                      274                      216
      Asset Impairment                                                            6,722                      128

      Reversal of Stock Compensation Accrual                                       (500)                     ---
      Other                                                                         107                      ---
    Changes in working capital items:
        Accounts receivable                                                        (171)                    (310)
        Accounts payable and accruals                                               851                   (3,546)
        Other working capital items, net                                           (212)                  (  193)
                                                                         ---------------           --------------

NET CASH USED BY
   CONTINUING OPERATING ACTIVITIES                                               (5,707)                 (12,634)

Cash flows used by discontinued operating activities                               (292)                  (8,246)
                                                                                -------               -----------

NET CASH USED BY OPERATING ACTIVITIES                                            (5,999)                 (20,880)
                                                                              ---------                ----------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchase of property and equipment                                              (215)                  (2,951)
   Proceeds From Sale of CT Business                                                ---                   44,300
   Proceeds From Sale of HC Business                                                ---                    5,000
   Restricted Cash-Proceeds from Sale of CT Business                                ---                   (3,505)
   ESIP participants loan repayments                                                ---                    2,578
   Other, net                                                                       (25)                    (245)
                                                                            ------------             ------------
NET CASH PROVIDED (USED) BY
    INVESTING ACTIVITIES                                                           (240)                  45,177
                                                                              ----------              -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Repayments/Borrowings under revolving credit facility                            ---                  (19,617)
   Repayments of other long-term debt                                               ---                     (455)
   Proceeds from issuance of stock                                                  403                    1,386
   Proceeds from Life Insurance Policies                                          1,137                      ---
                                                                             ----------          ----------------
NET CASH PROVIDED (USED) BY FINANCING
   ACTIVITIES                                                                     1,540                  (18,686)
                                                                             ----------              ------------
INC (DEC) IN CASH AND CASH EQUIVALENTS                                           (4,699)                   5,611
CASH AND CASH EQUIVALENTS - BEGINNING
   OF YEAR                                                                        5,731                    1,060
                                                                             ----------              ------------
CASH AND CASH EQUIVALENTS - END
  OF PERIOD                                                                   $   1,032                $   6,671
                                                                              =========                ==========