Back to Index

GTECH, CIRCLE K, AND THE CALIFORNIA LOTTERY LAUNCH INNOVATIVE LOTTERY PLATFORM THROUGH INTERACTIVE KIOSK NETWORK

(West Greenwich, Rhode Island  -- October 9, 2002) – GTECH (NYSE: GTK) today announced an agreement among the Company, Circle K, and the California Lottery, to add lottery sales capabilities to their ZapLink™ kiosks in Circle K stores in California.

The agreement will permit customers to purchase lottery tickets through a new self-service interactive kiosk, along with a range of other services. These special self-service kiosks will be placed in Circle K stores in locations away from the cash registers, increasing customer access without creating lines. For Circle K, the agreement represents another convenience for their customers in a way that benefits the overall store strategy.

For GTECH, the agreement is evidence of the role technology increasingly plays in the lottery industry.

"We are pleased to be able to make this breakthrough agreement that will expand both lottery and retail opportunities to customers in a way that captures and harnesses the power of emerging technologies," said James Breindel, Retail Product Manager of GTECH. "This agreement further demonstrates GTECH's commitment to lottery growth through open systems architecture - moving away from proprietary systems - and underscores GTECH's recognized leadership in cultivating innovative lottery growth strategies."

The California Lottery embraces the agreement as an innovative alternative to standard lottery services at the retail level.

"The truly exciting aspect of this approach is that it takes the lottery and places it in the hands of the player in a convenient, central setting," said Joan Wilson, Chief Executive Officer of the California Lottery. "For the California Lottery this is another illustration of our increasing commitment to the lottery player and our retailers, providing new and highly accessible opportunities in a traditional retail setting."

Digital Matter Corporation of Calgary, Alberta Canada, a leading provider for Internet & Wireless Transaction ("IWT") technology, will provide the ZapLink kiosks and non-lottery content that will be used in the Circle K stores. In addition to the opportunity to play the lottery on a self-serve basis, customers will be able to pay utility bills; purchase pre-paid telecommunications services, including long distance and cellular; access news and information over the Internet, including a locator service for maps and driving directions; access email; shop online; Internet surf; and download electronic media, such as properly-licensed music and software, to portable customer devices, among other potential services.

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.

•••

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.