GTECH Announces New Contract with Caixa Economica Federal in Brazil

GTECH Announces New Contract with Caixa Economica Federal in
Brazil 


WEST GREENWICH, R.I., May 12  /PRNewswire-FirstCall/ -- GTECH Holdings
Corporation (NYSE:GTK) today announced that its wholly-owned subsidiary, GTECH
Brazil Ltda., has signed a new one-year contract with Caixa Economica Federal,
the administrator of the National Lottery in Brazil.

Under the terms of the new contract, which is to commence on the termination
date of the existing Caixa contract on May 15, 2005, GTECH will continue to
operate the existing lottery and financial transaction processing systems for
Caixa until a new system, being developed in-house by Caixa, is installed and
operational.  At its sole discretion, Caixa may extend GTECH's contract beyond
the expiration date of May 14, 2006.  The new contract retains all of GTECH's
service offerings under the current contract, and reflects a fixed and variable
fee schedule.  In return for the new contract, GTECH has agreed to a reduction
in rate of approximately 12 percent from the previous contract pricing.

"GTECH has reached an agreement with Caixa that will support their migration
path to a new business model," said GTECH President and CEO W. Bruce Turner. 
"We will continue to work closely with Caixa and its vendors in order to assist
in a seamless transition and gradual exit by GTECH."

Based upon Caixa's de-installation schedule, and in accordance with previous
guidance, the Company expects revenues of approximately US$105 million to $120
million from the Caixa contract during fiscal 2006, including the recovery of
withholding payments from fiscal 2005.  With respect to the new contract, the
Company expects to generate approximately US$80 million to $85 million in
service revenue over the contract term, which essentially runs from the second
quarter of fiscal 2006 through the end of the first quarter of fiscal 2007.

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, a leading global information technology company with over $1 billion in
revenues and 5,300 people in over 50 countries, provides software, networks,
and professional services that power high-performance, transaction processing
solutions.  The Company's core market is the lottery industry, with a growing
presence in commercial gaming technology and financial services transaction
processing.  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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