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LOTTOMATICA SUBSIDIARY GTECH CORPORATION ANNOUNCES DEVELOPMENTS IN PENNSYLVANIA

ROME (ITALY) - PROVIDENCE, RHODE ISLAND (US), March 11, 2008 - Lottomatica S.p.A.'s wholly-owned subsidiary, GTECH Corporation, today announced that it has been informed by the Pennsylvania Lottery of their intent to seek best and final offers (BAFO) from the two bidders who submitted proposals for the Lottery's online and instants-system procurement. Previously, the Lottery had announced its intent to award the contract to GTECH and had entered into negotiations with the Company.

During the negotiations, GTECH proposed its Altura® terminal as an alternative to the Imagine™ terminal that was included in the original proposal. The formal market launch of the Imagine terminal has been delayed. It will now enter into production in late 2008 which would not meet the implementation schedule of the Lottery.

Although the Altura meets the requirements of the Lottery's Request for Proposal (RFP), it was not proposed and therefore not evaluated as part of the process. For this reason, the Lottery decided to seek BAFOs from the bidders.

Commenting on the matter, GTECH CEO Jaymin B. Patel said, “ We are awaiting further instructions on the BAFO process and look forward to responding. The delayed launch of the Imagine terminal is unfortunate but necessary. The Imagine terminal has been under development for the past three years, and the Company is confident that it will become the standard for the next generation of terminal technology.”

GTECH has a family of terminals that is field proven, highly reliable, and sets the standard in lottery ticket sales around the world,” continued Mr. Patel. ”We have every expectation of successfully meeting the Lottery's requirements in Pennsylvania.

The delay in the launch of the Imagine impacts a limited number of customers with whom GTECH has been successfully developing alternatives. The Company does not anticipate that the delayed launch will have any material financial impact on its long term outlook.

Lottomatica is one of the world's largest commercial lottery operators and a market leader in the Italian gaming industry. GTECH is a leading gaming technology and services company, providing innovative technology, creative content, and superior service delivery. GTECH and Lottomatica together create a fully integrated lottery operator and gaming technology solutions provider – a combined company with worldwide scale, considerable financial strength, and industry-leading customer solutions. Lottomatica is majority owned by De Agostini, which belongs to a century-old publishing, media, and financial services group. Lottomatica is publicly traded on the Italian Stock Exchange (LTO), and in 2007, had approximately €1.7 billion in revenues and 5,900 employees in over 45 countries when combined with GTECH.

 

 

For further information:

  AD HOC Communication Advisors 02/7606741 - Mario Pellegatta - Matteo Cidda

This press release and the previous ones are available on the web site: www.adhoccommunication.it

Lottomatica web site: www.gruppolottomatica.it

GTECH contact: Robert K. Vincent Public Affairs 1-401-392-7452

GTECH web site: www.gtech.com

 

 

 




Copyright 2008 GTECH Corporation