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GTECH Selected by the Arizona Lottery as Preferred Bidder

WEST GREENWICH, Rhode Island – (PRESS RELEASE) -- GTECH Holdings Corporation (NYSE: GTK) today announced that its wholly-owned subsidiary, GTECH Corporation, was selected by the Arizona Lottery as the preferred bidder for a new online lottery system, terminals, and communications network. The proposed five-year integrated services contract is expected to commence August 31, 2006, and will include five one-year renewal options. This award is the result of a competitive bidding process.

"GTECH has worked in close partnership with the Arizona Lottery for more than two decades, and we are appreciative of their continued confidence in our company," said GTECH President and CEO W. Bruce Turner. "In our proposal, we offered the Lottery an integrated solution that provides an enabling platform, our industry-leading Enterprise Series (ES) solution, and the most diverse point-of-sale solutions for the rapidly growing and changing Arizona retail environment. In addition, we offered a portfolio of game content strategies and an ever-expanding portfolio of new game concepts that will produce sustainable and responsible revenue growth for the state of Arizona."

Upon successful completion of a new contract, GTECH will convert the Lottery's existing system to the Company's Enterprise Series(TM) technology platform and replace the existing terminal base with approximately 2,600 Altura(R) terminals. In addition, GTECH will provide an IP-based communications network.

"GTECH's solution is designed to adapt to accelerating shifts in retail distribution and the latest trends in consumer communications, and enables the expansion of entertainment choices, play value, and consumer access," continued Mr. Turner.

GTECH will continue to provide ongoing services to the Arizona Lottery including central system and terminal maintenance; field service; marketing support; and hotline management.

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