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IGT, Acres Gaming Reports Merger Agreement

Under the terms of the agreement, IGT will pay $11.50 per share in an all cash transaction, representing an aggregate purchase price of approximately $130 million on a fully diluted share basis. IGT estimates that the transaction will be neutral to slightly accretive to earnings per share on a full year basis, subject to final purchase accounting adjustments.

Acres specializes in the development of gaming systems technology that enables casino operators to increase patron loyalty. The resulting combination will position IGT as a leading provider of gaming systems to the world-wide casino market.

"The combined IGT/Acres product offering will provide all of our customers with more product choices, increased customer service and exciting innovations that will enhance the gaming experience of the player," commented Rich Pennington, Executive Vice President of Product Development for IGT.

"Acres and IGT have worked together on many successful initiatives over the years," said Bud Glisson, Acres' CEO. "The actual combination of our technologies and people will further strengthen our capacity to continue to provide reliable and innovative system products in the gaming industry."

The merger is subject to the approval of Acres' stockholders, various regulatory approvals, including Hart-Scott-Rodino and gaming regulatory approvals, and other conditions. The companies anticipate that the transaction will be completed in the fourth calendar quarter of 2003.

The Seidler Companies Incorporated provided a fairness opinion and acted as financial advisor to Acres.

IGT is a world leader in the design, development and manufacture of microprocessor-based gaming and lottery products and software systems in all jurisdictions where gaming and lotteries are legal.

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