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Autotote Announces Q2 2000 and Six Months Results

19 May 2000

NEW YORK--(Press Release) --May 19, 2000--AUTOTOTE CORPORATION (AMEX:TTE - news) today announced second fiscal quarter results for the quarter ended April 30, 2000.

In the second quarter of fiscal 2000, revenue was $51.1 million compared to $53.1 million in the second quarter of fiscal 1999, a decrease of 4%. EBITDA (earnings before interest, taxes, depreciation and amortization) increased 18% to $12.0 million from $10.2 million for the earlier period. Net income was $2.3 million or $0.06 per diluted share in the second fiscal quarter of 2000 versus net income of $0.6 million or $0.02 per diluted share in the second fiscal quarter of 1999.

For the first six months of fiscal 2000, Autotote's revenue was $100.6 million compared to $98.7 million in the first six months of fiscal 1999, an increase of 2%. EBITDA increased 24% to $22.1 million from $17.8 million in the prior period. Autotote's net income increased to $2.8 million in the first six months of fiscal 2000 from a loss of $1.9 million in the comparable period in fiscal 1999. Fully diluted earnings per share increased to $0.07 in the first 6 months of fiscal 2000 from a loss of $0.05 in the first six months of fiscal 1999.

Lorne Weil, Chairman and Chief Executive Officer, commented, "Our financial results continued strong in the second quarter. Revenue was up nicely in our service businesses, and, excluding the effect of a significant one-time sale last year to the Montana lottery, overall company revenue grew as well.

"The earnings improvement was similarly well balanced: about 75% of the EBITDA growth came from service businesses and the remainder from equipment sales. We saw particularly encouraging earnings improvements in our Connecticut OTB, which on May 6th, Kentucky Derby Day, experienced the highest one-day handle in its history; and Germany, where the integration of our on-track, off-track and satellite operations is proceeding smoothly.

"There was a lot of important development activity taking place in the second quarter as well. Response by retailers to the rollout of our German OTBs has been strong, and the recruiting of agent locations is well ahead of expectations. During the quarter we began marketing our 'business-to-business' Internet wagering product in the US and Europe and have received a very positive reaction.

"As the quarter ended, we began to expand the market for our own 'business-to-consumer' On the Wire™ account wagering business through our Connecticut OTB from 13 states to over 30. We also extended our totalisator agreement with the New York Racing Association which will begin using our new Eclipse™ central system this fall.

"Lastly, and of course most importantly, we announced today the acquisition of Scientific Games and the $100 million investment in Autotote by Olivetti. As discussed in a separate press release, we believe these two developments will have a significant impact on the company's strategic posture and the outlook for the future is extremely positive."

Autotote and Scientific Games will be hosting a conference call for investors and the media today at 11:00 A.M. ET. To access the call within the U.S. dial 888-243-1119 and for international callers dial 212-993-0201.

AUTOTOTE CORPORATION provides computerized wagering equipment, computer software, facilities management and satellite broadcast services for on-track, off-track and inter-track wagering, lotteries and legalized sports betting facilities. Autotote's systems are in use in the United States, Europe, Canada, Mexico, Latin America, Barbados, New Zealand and the Far East.

                 AUTOTOTE CORPORATION AND SUBSIDIARIES
                 Consolidated Statements of Operations
                              (Unaudited)
               (In Thousands, Except Per Share Amounts)

                        Three Months Ended       Six Months Ended
                             April 30,               April 30,
                      ----------------------  ----------------------
                         2000        1999        2000        1999
                      ----------  ----------  ----------  ----------

Operating revenues:
   Services           $   38,285      36,496  $   74,618      70,725
   Sales                  12,776      16,583      26,008      28,006
                      ----------  ----------  ----------  ----------
                          51,061      53,079     100,626      98,731
                      ----------  ----------  ----------  ----------

Operating expenses
 (exclusive of
 depreciation and
 amortization shown
 below):
   Services               24,447      23,730      48,927      46,893
   Sales                   8,357      12,718      16,353      20,874
                      ----------  ----------  ----------  ----------
                          32,804      36,448      65,280      67,767
                      ----------  ----------  ----------  ----------
       Total gross
        profit            18,257      16,631      35,346      30,964

Selling, general
 and administrative
 expenses                  6,254       6,425      13,247      13,213
Depreciation and
 amortization              5,142       5,278      10,652      11,011
                      ----------  ----------  ----------  ----------
       Operating
        profit             6,861       4,928      11,447       6,740

Interest expense           4,186       4,039       8,183       8,109
Other expense                126         256         183         301
                      ----------  ----------  ----------  ----------
                           4,312       4,295       8,366       8,410
                      ----------  ----------  ----------  ----------
       Income (loss)
        before income
        tax expense        2,549         633       3,081      (1,670)
Income tax expense           243          61         311         192
                      ----------  ----------  ----------  ----------
Net income (loss)     $    2,306         572  $    2,770      (1,862)
                      ==========  ==========  ==========  ==========

Net income (loss)
 per basic share      $     0.06        0.02  $     0.08       (0.05)
                      ==========  ==========  ==========  ==========
Net income (loss)
 per diluted share    $     0.06        0.02  $     0.07       (0.05)
                      ==========  ==========  ==========  ==========

Weighted average
 number of shares
 used in per share
 calculation:
   Basic shares           36,622      36,032      36,504      36,027
                      ==========  ==========  ==========  ==========
   Diluted shares         41,878      37,371      41,112      36,027
                      ==========  ==========  ==========  ==========

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