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GTECH Signs Brazil Lottery Contract

13 May 2005

WEST GREENWICH, Rhode Island – (PRESS RELEASE) -- 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.

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