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GTECH Signs 12-Year Contract Extension with SAZKA

WEST GREENWICH, Rhode Island – (Press Release) -- GTECH Holdings Corporation (NYSE: GTK) today announced that its wholly-owned subsidiary, GTECH Corporation, has signed a 12-year contract extension to provide online lottery products and services to SAZKA, a.s., the operator of lottery and betting games in the Czech Republic. The contract extension will commence on January 1, 2006 and expire on December 31, 2017. "This contract extension with SAZKA is further evidence of our commitment to providing customers with superior lottery technology, products, and services," said GTECH President and CEO W. Bruce Turner.

"GTECH's Enterprise Series platform continues to be the clear choice for new customers, as well as existing customers, as demonstrated by today's announcement. We are grateful to SAZKA for continuing our partnership through 2017, and we look forward to working closely with them to expand and grow their business."

SAZKA joins a growing list of GTECH customers who have chosen the Company's Enterprise Series(TM) platform, including Rhode Island, California, Georgia, Minnesota, WestLotto (Germany), Wisconsin, Sweden, Trinidad & Tobago, and Florida. Under the terms of the contract extension, GTECH will replace SAZKA's current online and instant ticket system with GTECH Enterprise Series architecture. Enterprise Series uses an open platform infrastructure that will give SAZKA the ability to capture emerging growth and management opportunities such as e-commerce applications, new game delivery, access through browser-based devices, sharing of networks and communications, and compatibility with other open third-party business management solutions.

GTECH will also replace SAZKA's existing terminal base with approximately 7,000 Altura(R) terminals. The Altura, GTECH's most advanced point-of-sale terminal, offers high-performance PC architecture and advanced software capabilities that facilitate the rapid introduction of new games and future lottery applications. GTECH will continue to operate from a data center in Prague and provide a variety of services to SAZKA including system and terminals installation and maintenance; telecommunications network operation and maintenance; retailer training; and hotline management. This new agreement with SAZKA includes innovative agreements to partner in growth initiatives in selected non-lottery markets as well. Risk/Reward sharing opportunities, enabled by GTECH's technology and SAZKA's distribution model, are key to this future success.

As part of the agreement with SAZKA, GTECH also agreed to provide a $20 million performance deposit that will be repaid upon achievement of certain milestones beginning in 2006. SAZKA has been a valued GTECH customer since 1992. With respect to its contract extension with SAZKA, GTECH expects to generate approximately $230 million over the contract extension period.

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