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Scientific Games' Shareholders Approve Acquisition By Autotote Corporation9 August 2000NEW YORK – (Press Release) -- Aug. 9, 2000 -- Autotote Corporation (AMEX: TTE) and Scientific Games Holdings Corp. (NYSE: SG) announced today that at a special meeting of shareholders yesterday, Scientific Games' shareholders voted to approve its acquisition by Autotote Corporation. The acquisition, which remains subject to the approval of certain governmental entities and certain other conditions, is expected to close before the end of August. The acquisition combines Scientific Games' instant lottery ticket and related services, lottery systems and rapidly growing prepaid phone card businesses with Autotote's pari-mutuel wagering, venue management and on-line lottery businesses. On May 18, 2000 Autotote Corporation agreed to acquire Scientific Games for merger consideration of approximately $310 million, or $26 per share in cash. In conjunction with the Scientific Games acquisition, and the repayment of substantially all of the existing debt of both companies, and payment of certain related costs, Autotote is arranging debt financing through affiliates of Donaldson, Lufkin & Jenrette and Lehman Brothers. Autotote also expects to issue a new series of convertible preferred stock, expected to be purchased principally by an entity of Olivetti, S.p.A. Lorne Weil, Chairman and CEO of Autotote, said, ``As a result of our merger, we will be the largest provider of services, systems and products to both the pari-mutuel gaming and instant ticket lottery industries as well as the only fully integrated lottery service provider in the world. We believe we will be much better positioned to take advantage of the numerous opportunities before us in the pari-mutuel, lottery and prepaid phone card businesses, including the Internet, and to penetrate territories where one of us has done business but not the other. We look forward to a richly rewarding future together as we combine the expertise of both companies to seek to penetrate our potential markets even further and more effectively.'' William G. Malloy, Chairman and CEO of Scientific Games, added, ``The skill sets of each of our companies are so complementary that combined, we should prove to be a highly effective and competitive force. The merger with Autotote will give the newly combined companies the breadth and scale to develop and deliver products that can drive the future success of the lottery and racing industries." |