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GTECH SIGNS MULTI-YEAR, INTEGRATED SERVICES CONTRACT
WITH THE CALIFORNIA LOTTERY
Company to Deliver Enterprise Series Solution and New Telecommunications Network to Third Largest Lottery in the United States

(West Greenwich, Rhode Island  -- October 9, 2002) – GTECH (NYSE: GTK) today announced that the Company has signed a contract with the California Lottery to provide equipment and services for a new integrated online and instant-ticket lottery system, and associated telecommunications network. The six-year integrated services contract, which is expected to commence on October 14, 2003, includes four one-year extension options and follows a competitive bid process. At the end of the last option period exercised by the California Lottery, the contract will continue in full force and effect under the same terms and conditions unless either party terminates by providing a two (2) year advance notice of termination to the other party.

"We are pleased to continue our longstanding partnership with the California Lottery," said GTECH President and CEO W. Bruce Turner. "The solution we will deliver to the California Lottery is built around our innovative Enterprise Series system and a wireless IP network. It will be operated from a primary data center in Austin, Texas, and supported by regional software resources. All of that adds up to the lottery of the future."

Under the terms of the contract, GTECH will replace the California Lottery's current online system, with GTECH's® Enterprise Series™ architecture, featuring IP web component technology. Enterprise Series embraces a new industry paradigm for design and integration of secure lottery networks and open applications. The GTECH Lottery Engine will be based on IBM hardware and the AIX UNIX operating system, to deliver both online and instant-ticket management functionality. In addition, GTECH will replace the California Lottery's existing communications network with a state-of-the-art, IP-based wireless communications system, which provides highly secure and reliable communication between a central hub and lottery retailers.

"With California, one of the major lotteries in the world is willing to embrace a new operating model that delivers unprecedented flexibility, reliability, and efficiency," continued Mr. Turner. "The progress that has been made in implementing our new architecture allows us to deliver the Enterprise Series solution in a way that is aligned with industry and customer expectations. This contract win proves that GTECH is the industry leader in both innovation and competitiveness."

GTECH initially will replace the California Lottery's current terminal base with approximately 17,300 GTECH Altura® terminals, with an option for the Lottery to add additional terminals over the contract period. The Altura offers high-performance PC-based architecture and advanced software capabilities that facilitate the rapid introduction of new games and future lottery applications. The Altura terminal introduces a wide variety of innovative features including a high speed imaging reader, a thermal printer, and advanced applications written in the Java programming language under a Linux operating system.

Of the 17,300 Altura terminals, approximately 6,100 will feature GTECH's AlturaVision, a video display system that allows the development, delivery, and display of text, graphics, animations, and other multimedia objects on a display device (such as a television or LCD monitor) located in a retail establishment.

In addition, GTECH will provide the California Lottery with approximately 1,200 Altura SSTs (Self Service Terminals), which are designed to accept debit and credit card payments. An additional 1,200 Altura terminals will serve as companion devices for the Altura SSTs. The Company will also supply 7,000 Express Point Plus™ devices, which facilitate convenient player-activated identification of winning tickets. The Company has also agreed to supply the California Lottery with a number of player and retailer options to provide a reliable medium to reach customers with product promotions and jackpot information.

GTECH will install and maintain its Player Express® product at select supermarket locations in California. Player Express is GTECH's proprietary in-lane, self-service lottery terminal that creates a convenient play option for consumers in supermarket checkout lanes.

GTECH will provide the California Lottery with ongoing services, including system design, delivery and ongoing operations; terminal installation and maintenance; field services; hotline management; retailer training; maintenance of Lottery-owned ITVMs (Instant Ticket Vending Machines); marketing support; and telecommunications network management and maintenance.

With respect to its contract with the California Lottery, GTECH anticipates generating revenues of approximately $300 million over the initial term of the contract.

Since 1986, GTECH has provided gaming services to the California Lottery, which is the third largest lottery in the United States and the eighth largest in the world, in terms of total sales. In the California Lottery's fiscal year ended June 30, 2002, online and instant-ticket sales totaled over $2.89 billion. Since its inception, the California Lottery has raised $14 billion for California's public education segments, K-14 and higher education.

Certain statements contained in this press release are forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements include, without limitation, statements relating to the prospects and financial outlook for the Company, which reflect management assumptions regarding: (i) the future prospects for and stability of the lottery industry and other businesses in which the Company is engaged or expects to be engaged, (ii) the future operating and financial performance of the Company (including, without limitation, expected future growth in revenues, profit margins and earnings per share), and (iii) the ability of the Company to retain existing business and to obtain and retain new business. Such forward looking statements reflect management's assessment based on information currently available, but are not guarantees and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in the forward looking statements.

These risks and uncertainties include, but are not limited to, those set forth above, in the Company's subsequent press releases and on Reports by the Company on Forms 10-K, 10-Q and 8-K, and other reports and filings with the Securities and Exchange Commission, as well as risks and uncertainties respecting: (i) the potential impact of extensive and evolving government regulations upon the Company's business; (ii) the ability of the Company to continue to retain and extend its existing contracts and win new contracts; (iii) the possibility of slower than expected growth or declines in sales of lottery goods and services by the Company or the Company's customers; (iv) exposure to foreign currency fluctuations; (v) risks and uncertainties inherent in doing business in foreign jurisdictions; (vi) the relatively large percentage of the Company's revenues attributable to a relatively small number of the Company's customers; (vii) the fact that several of the Company's larger contracts are to be rebid within the next six months; (viii) the possibility of significant fluctuation of quarterly operating results; (ix) the intensity of competition in the lottery industry; (x) the possibility of substantial penalties under and/or termination of the Company's contracts; (xi) the ability of the Company to respond to technological change and to satisfy the future technological demands of its customers; (xii) opposition to expansion of lottery and gaming; (xiii) the Company's ability to attract and retain key employees; and (xiv) the possibility of adverse determinations in pending legal proceedings.

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GTECH, a leading global information technology company with $1 billion in revenues and 4,400 people in 43 countries, provides software, networks, and professional services that power high-performance, transaction processing solutions. The Company's core market is the lottery industry, with a growing presence in financial services transaction processing. For more information about the Company, please visit GTECH's website at http://www.gtech.com.