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CHINA GIVES OFFICIAL APPROVAL FOR CHANCELLOR CORP. TO BEGIN LOTTERY OPERATIONS IMMEDIATELY

Released_By: USANEWS
Date: 6/27/98
Time: 2:32:40 AM

For_Immediate_Release

It's Official!!

CHANCELLOR CORPORATION "CELR", the holding company for U.S. HERITAGE, announced today that the Foreign Investment Authorization Division within the Chinese Government has given final approval for Lottery Operations to begin immediately.

U.S. HERITAGE has announced that they have selected a world renown Lottery Operator for lottery administration, and have employed the services of a recognized professional lottery manager to complete contract negotiations with the newly appointed operator. More announcements are expected next week.

Operations will initially begin with 5 drawings per week. The first lotteries will be based on televised horse racing results from Hong Kong. This is the only approved sports lottery to run through betting shops in Beijing besides the government.

Chancellor Corporation, a publicly traded American company, is listed on the OTC-Bulletin Board under the symbol of "CELR".

Details of the lottery agreement are listed on the Internet at Geraldsnet Stock Research Network. http://www.geraldsnet.com Look under featured companies-----"Chancellor Corporation".

For more information, contact: GERALD COMMUNICATIONS Gerald Sterchi -Director Investor Relations (916) 854-4931 Fax (916) 983-7783 E-Mail: gerald@geraldsnet.com

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