California Lottery Orders Additional Lottery Products from GTECH

WEST GREENWICH, R.I., Sept. 1  /PRNewswire-FirstCall/ -- GTECH Holdings Corporation (NYSE:GTK) today announced that its wholly-owned subsidiary, GTECH Corporation, has received an order from the California Lottery for a variety of lottery products including additional Altura(R) terminals, Instant Ticket Vending Machines (ITVMs), and other self-service lottery solutions.

"GTECH is constantly looking for ways to enhance the performance of our lottery customers, while, at the same time, considering the various needs of retailers and players," said GTECH President and CEO W. Bruce Turner. "Working together with the California Lottery, we have come up with effective solutions that will not only aid in their retailer network optimization and expansion efforts, but continue to drive lottery sales.

"And, as we see the growing retail demand for self-service solutions, the addition of GamePoint will provide California's retailers with the ability to dispense both traditional instant tickets and online tickets, from a player- friendly, kiosk-style unit," continued Mr. Turner.

Under the contract change order, GTECH will provide the California Lottery with 550 Altura terminals, adding to the 18,500 Alturas already in operation. In addition, 700 Altura LVTs will be installed, providing a powerful, yet, compact platform for retailers requiring a smaller terminal.  The Company will also supply 12,500 Express Point(R) Plus devices, bringing the total to 19,000.  The Express Point Plus terminals facilitate convenient player- activated identification of online winning tickets.

The Lottery will also receive 1,000 20-bin Expandable Dispensing System Quad Burster(TM) (EDS-Q) ITVMs, which will be used primarily as replacement machines.  Along with the ITVMs, GTECH will provide 150 GamePoint(TM) terminals, the Company's new lottery self-service solution, combining the best of the instant ticket vending machine with online self-service capability. Over the next 90 days, the Lottery has agreed to order 200 additional ITVMs or 100 additional GamePoints, or some mix of the two equipment types.

With respect to the contract change order with the California Lottery, GTECH expects to receive approximately $8 million in product sale revenue, and $35 million in service revenue over the life of the existing contract which runs through October 13, 2009.

GTECH has provided lottery products and services to the California Lottery since 1986.  In its fiscal year which ended June 30, 2005, the Lottery experienced record online and instant-ticket sales of more than $3.3 billion.

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 $1.25 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/.

  Contact: Robert K. Vincent
           Public Affairs
           GTECH Corporation
           401-392-7452


DATASOURCE: GTECH Holdings Corporation



CONTACT: Robert K. Vincent, Public Affairs of GTECH Corporation,

[phone]



Web site:  http://www.gtech.com/ 

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