Tom Ryan, Don Duffy                         Steven Saferin, President & CEO
   Integrated Corporate Relations              MDI Entertainment, Inc.
   203-222-9013                                860-527-5359
   ICR-ONLINE.COM                              WWW.MDIENTERTAINMENT.COM


FOR IMMEDIATE RELEASE

                MDI AND INTERNATIONAL CAPITAL PARTNERS MUTUALLY
                             TERMINATE DISCUSSIONS

HARTFORD, CT - June 27, 2002, - MDI ENTERTAINMENT, INC. (OTC BB: LTRY) announced
today that International Capital Partners, LLC and MDI Entertainment,  Inc. have
mutually terminated discussions.

In a press release filed with the Securities and Exchange Commission on May 7,
2002 under cover of Schedule 14D-9, the Company announced that it had received a
preliminary proposal from International Capital Partners, LLC ("ICP") to acquire
a majority interest in the Company. Based, in part, on the advice of Steve
Saferin, our principal stockholder as well as a director and Chief Executive
Officer, that he would not tender in the ICP proposal, ICP and we have mutually
determined to terminate discussions with respect to such proposal.

MDI lottery brand licenses and turnkey promotion services provide lotteries with
most of the labor intensive tasks that accompany large-scale merchandise prize
management and fulfillment, and secure random drawings.

MDI's services also include game and ticket design, merchandise prize
fulfillment, management of second-and third-chance draws, fully-staffed customer
service, coordination of winner travel & accommodations, advertising and
marketing support, consumer research and Internet marketing and advertising.

Currently, the company's portfolio of licensed lottery properties includes but
is not limited to NBA/National Basketball Association, Betty Boop(TM), Elvis
Presley(R), I Love Lucy(R), Magic 8 Ball(R), FIFA World Cup(R) Soccer, Universal
Studios Monsters(TM), SPAM(TM), Heroes of Space(TM), Louisville Slugger(R),
CMT(R), Wheel of Fortune(R), Jeopardy! (R), Harley-Davidson(R), The Hollywood
Sign(R) and Hollywood Walk of Fame(R) Ray Charles(R), Hollywood Squares(R),
TABASCO(R), Lionel, and NASCAR(R) race drivers including Jeff Burton(R), Mark
Martin(R), Matt Kenseth(R), and Bill Elliott(R).


                       * * * * * * * * * * * * * * * * * *

The Private  Securities  Litigation  Reform Act of 1995 provides a "safe harbor"
for  forward-looking  statements.  Certain  information  included  in this press
release (as well as  information  included in oral  statements  or other written
statements   made  or  to  be  made  by  MDI)  contains   statements   that  are
forward-looking, such as statements relating to the future anticipated direction
of  the  lottery  industry,   plans  for  future  expansion,   various  business
development  activities,  planned capital expenditures,  future funding sources,
anticipated  sales and potential  contracts.  Such  forward-looking  information
involves  important  risks and  uncertainties  that could  significantly  affect
anticipated results in the future and, accordingly, such results may differ from
those expressed in any  forward-looking  statements made by or on behalf of MDI.
These risks and uncertainties include, but are not limited to, those relating to
development  and  expansion  activities,   dependence  on  existing  management,
financing  activities,  domestic  and  global  economic  conditions,  changes in
federal or state tax laws and market competition factors.