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GTECH ANNOUNCES FISCAL YEAR 2006 FIRST QUARTER RESULTS

WEST GREENWICH, RI - (June 22, 2005) - GTECH Holdings Corporation (NYSE: GTK) today announced first quarter earnings for fiscal year 2006, which ended May 28, 2005.

"GTECH delivered another strong financial performance in the first quarter," said GTECH President and CEO W. Bruce Turner. "We also scored several key wins and made significant strategic progress. We are pleased to report that we also saw progress in Brazil in the first quarter, where it appears we are one step closer to a resolution of what has been a difficult situation for GTECH."

"We are pleased with the underlying strength of the business," said GTECH Senior Vice President and CFO Jaymin B. Patel. "Our continued financial, operational, and strategic successes provide further confidence in our ability to drive profitable growth for our shareholders in both the near term and over the next several years."

Operating Results

Revenues for the first quarter of fiscal 2006 were $326.4 million, up 16.5% over revenues of $280.2 million in the first quarter of fiscal 2005. Net income was $54.8 million, or $0.43 per diluted share, compared to net income of $53.6 million, or $0.40 per diluted share for the same period last year. Net income in the first quarter of the prior year includes a one-time, after-tax gain of $6.9 million, or approximately $0.05 per diluted share, associated with the sale of the Company's 50% interest in Gaming Entertainment (Delaware) L.L.C.

Prior year earnings and dividends per share reflect the 2-for-1 common stock split declared in June 2004.

Cash Flow and Investments

During the first quarter of fiscal 2006, the Company generated $121.6 million of cash from operations. This cash was principally used to fund $40.6 million of systems, equipment, and other assets relating to contracts; to repurchase $32.1 million, or 1.3 million shares of the Company's common stock; and to pay cash dividends of $9.8 million. At May 28, 2005, the Company had $125.6 million of cash and cash equivalents and $209.5 million of short-term investment securities on hand.

At the end of the first quarter of fiscal 2006, the Company had no borrowings under its $500 million senior revolving credit facility.

Financial Outlook

The Company provided guidance for the full year and second quarter of fiscal 2006.

For the fiscal year ending February 25, 2006, the Company expects service revenue growth in the range of 11% to 13%, reflecting the net effect of a new contract in Brazil and the return of a portion of fiscal year 2005 Brazil revenues previously held in escrow. It expects product sales in the range of $180 million to $210 million.

The Company expects that service margins will be in the range of 40% to 42%, and product sale margins to be in the range of 38% to 40%.

Based upon this outlook, it now expects earnings per share for fiscal 2006 to be in the range of $1.64 to $1.70 on a fully-diluted basis.

For the second quarter of fiscal 2006, ending August 27, 2005, the Company expects service revenue growth in the range of 10% to 12% and product sales in the range of $30 million to $35 million. The Company expects service and product sale margins in the range of 38% to 40%. Accordingly, the Company expects earnings per share to be in the range of $0.37 to $0.40 per share for the quarter.

First Quarter Highlights

In the first quarter of fiscal 2006, GTECH continued to successfully execute against the Company's strategic objectives of maintaining and expanding the core lottery business, and winning new customers.

Domestically, GTECH was selected by the Pennsylvania Department of Revenue for a gaming central control system. The system will monitor and control up to 61,000 gaming devices at approximately 14 venues throughout the state. In addition, GTECH was named the preferred vendor to provide a video gaming monitoring system and site controllers for the Louisiana Department of Public Safety & Corrections video gaming program. Both of these awards follow highly competitive procurements.

Also in the quarter, GTECH received an order for 2,400 Instant Ticket Vending Machines (ITVMs) to be provided to the Pennsylvania Lottery. The Hoosier Lottery in Indiana also selected GTECH to negotiate a contract for 680 ITVMs.

Internationally, GTECH received a one-year contract from the Company's customer in Brazil, Caixa Economica Federal, through May 14, 2006. In Denmark, GTECH signed a two-year contract extension with Dansk Tipstjeneste, the operator of the Danish National Lottery. The Company was also granted an 18-year agreement to operate The Barbados Lottery, which was recently consolidated from three lotteries into one.

GTECH further strengthened its management team with the appointments of Dr. Joseph Nadan as Senior Vice President and Chief Technology Officer, and Bruce Rowe as Vice President of Business Strategy for Gaming Solutions, and General Manager of Nevada Operations.

Also in the first quarter, GTECH announced that it formed a strategic alliance with Harrah's Operating Company, Inc., a subsidiary of Harrah's Entertainment, Inc., whereby GTECH will supply Harrah's properties with gaming machines, and the two companies will work together to develop new game content.

Over the next two years, GTECH will place 200 leased video gaming machines in Harrah's properties around the country. The companies will also explore opportunities to expand the relationship with additional slot products in future years, depending upon the performance of the machines installed during the initial period.

"Our long-term strategy remains the same. We will work to drive new growth through acquisition and partnerships, and we will continue to focus on M&A transactions that enhance our offerings in the online and instant channels, monitor games, gaming machines, and the full range of interactive channels," continued Mr. Turner. "All of these activities will bring us closer to achieving our ultimate goal: to become a fully-diversified, world-class gaming company. This will ensure that we have a wealth of opportunities to fuel our continued growth."

Certain statements contained in this press release are forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The Company identifies forward looking statements by words such as "may," "will," "should," "could," "expect," "plan," "anticipate," "intend," "believe," "estimate," "continue," or similar words that refer to the future. Such statements include, without limitation, statements relating to the prospects and financial outlook for the Company, which reflect management assumptions regarding: (i) the future prospects for and stability of the lottery industry and other businesses in which the Company is engaged or expects to be engaged, (ii) the future operating and financial performance of the Company (including, without limitation, expected future growth in revenues, profit margins and earnings per share), and (iii) the ability of the Company to retain existing business and to obtain and retain new business. Such forward looking statements reflect management's assessment based on information currently available, but are not guarantees and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in the forward looking statements.

These risks and uncertainties include, but are not limited to, those set forth above, in the Company's subsequent press releases and on reports by the Company on Forms 10-K, 10-Q and 8-K, and other reports and filings with the Securities and Exchange Commission, as well as risks and uncertainties respecting: (i) the potential impact of extensive and evolving government regulations upon the Company's business; (ii) the ability of the Company to continue to retain and extend its existing contracts and win new contracts; (iii) the possibility of slower than expected growth or declines in sales of lottery and gaming goods and services by the Company or the Company's customers; (iv) exposure to foreign currency fluctuations; (v) risks and uncertainties inherent in doing business in foreign jurisdictions; (vi) the relatively large percentage of the Company's revenues attributable to a relatively small number of the Company's customers; (vii) the possibility of significant fluctuation of quarterly operating results; (viii) the intensity of competition in the lottery and gaming industries; (ix) the possibility of substantial penalties under and/or termination of the Company's contracts; (x) the ability of the Company to respond to technological change and to satisfy the future technological demands of its customers; (xi) opposition to expansion of lottery and gaming; (xii) the Company's ability to attract and retain key employees; and (xiii) the possibility of adverse determinations in pending legal proceedings.

GTECH is a leading gaming technology and services company. With more than $1.2 billion in annual revenues and 5,300 people in over 50 countries, GTECH provides integrated technology, creative content, and business services to effectively manage and grow today's evolving gaming markets. In targeted emerging economies, GTECH also leverages its operational presence and infrastructure to supply commercial transaction processing services. For more information about the Company, please visit GTECH's website at http://www.gtech.com .

Consolidated financial statements to follow: