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GTECH, North Carolina Lottery Sign Deal

WEST GREENWICH, Rhode Island – (PRESS RELEASE) -- GTECH Holdings Corporation (NYSE: GTK) today announced that its wholly-owned subsidiary, GTECH Corporation, has signed a long-term agreement with the North Carolina Education Lottery to provide a fully-integrated online and instant ticket lottery system, lottery terminals, a wireless communications network, Instant Ticket Vending Machines (ITVMs), management of warehousing and distribution of instant tickets, and ongoing services. Under this agreement, GTECH has also partnered with Oberthur Gaming Technologies Corporation (OGT) for the printing of instant tickets. The seven-year agreement is expected to commence on March 30, 2006, the anticipated launch date for instant ticket games, and follows a competitive procurement process.

"We are extremely gratified to be chosen as the full-service provider for the North Carolina Education Lottery's online and instant ticket games," said GTECH President and CEO W. Bruce Turner. "In partnership with OGT, GTECH will offer the North Carolina Education Lottery a complete, end-to-end lottery solution, which is a testament to our unmatched experience in the lottery industry, our proven quality of services, and, most importantly, the integrity and security of our systems.

"GTECH's fully-integrated solution will enable the Lottery to respond to market challenges with accelerated innovation, because we offer more robust reporting tools, a larger portfolio of games ready to market, and a unique set of devices and solutions for retail expansion, allowing the Lottery to effectively manage its growth in the years ahead," continued Mr. Turner.

Under the terms of the seven-year agreement, GTECH will install the Company's Enterprise Series(TM) technology platform providing both online and instant ticket functionality, as well as 5,000 Altura(R) terminals initially. The Lottery has the option to grow the terminal base to up to 10,000 over time. The Company has also agreed to supply up to 1,000 Lottery Inside(TM) retail point-of-sale (POS) solutions which will allow the Lottery to expand its distribution channels by embedding lottery functionality in existing retailer POS hardware. GTECH will also install and maintain 800 ITVMs, and a state-of-the-art, IP wireless communications network, providing the most secure and reliable data connection between the host computer and lottery retailers.

In addition, GTECH and OGT will work together to create, produce, and deliver instant tickets. "Executing these tickets from concept to game production is the expertise of OGT, and that expertise will be supported by GTECH's skill in efficient warehousing, distributing, marketing, and selling of the tickets once they are on the market," concluded Mr. Turner.

GTECH will provide ongoing services to the Lottery including maintenance of the central system, lottery terminals, ITVMs, and communications network; instant games management, warehousing, and distribution; retailer training; marketing support; hotline management; and field service.

With respect to its agreement with the Lottery, GTECH expects to generate approximately $225 million to $250 million in revenue over the seven-year contract term.

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