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GTECH SELECTED TO PROVIDE NEW ONLINE AND INSTANT-TICKET CENTRAL SYSTEM SOLUTION TO WESTDEUTSCHE LOTTERIE
GmbH & CO. Company to Provide Latest Technology for Largest Lottery Operator in Germany

(West Greenwich, Rhode Island  -- October 10, 2002) – GTECH (NYSE: GTK) today announced that it has been selected as the preferred supplier to provide a new online and instant-ticket central system solution and related services to Westdeutsche Lotterie GmbH & Co. OHG (WestLotto), the operator of online and instant-ticket lottery games in the German state of Nordrhein-Westfalen. The award follows a competitive procurement process that involved three other bids, and an unsuccessful bid protest from a third party which was withdrawn only after a formal decision by the German court.

“We are delighted and honored to have Germany’s largest lottery and one of the world’s most respected operators, WestLotto, as a valued new client,” said W. Bruce Turner, GTECH’s President and CEO. “As the worldwide leader in the lottery industry, we are especially gratified to have been selected over an incumbent competitor. It is also notable that the procurement placed an emphasis on the quality of the proposed technological solution, and, as such, is a strong indication of the emerging value and validation of GTECH’s Enterprise Series solution package.”

“GTECH’s advanced strategic vision, technological capabilities, systems experience, and support services make them the clear choice for converting WestLotto’s system and meeting the highest standards of security, reliability, and performance,” said Dr. Winfried Wortmann, WestLotto’s CEO.

Upon successful completion of negotiations, GTECH will replace WestLotto’s existing central system and communications hardware and software with GTECH’s® Enterprise Series™. GTECH’s solution to addressing the ever-changing future world of gaming, Enterprise Series provides lotteries with an open systems architecture and is the new industry standard for the design and integration of secure lottery networks.

Enterprise Series uses an open platform infrastructure that will afford WestLotto the ability to capture emerging growth and management opportunities such as e-commerce applications, new game delivery, access through browser-based devices, sharing of networks and communications, and compatibility with other open third-party business management solutions.

GTECH will, upon successful completion of negotiations, provide WestLotto with ongoing services for the central system hardware and software; software enhancements; hotline training; and lottery personnel training. WestLotto also acknowledges GTECH’s unique system integration skills, which will allow integration of third-party point-of-sale (POS) terminals and general contracting of POS providers.

GTECH anticipates receiving over a period of five years approximately $40 million in product sale and services fees, beginning in fiscal year 2005. The contract may be extended for additional years.

“We are excited about working with WestLotto to expand and grow their business,” continued Mr. Turner. “We are encouraged that, with several other German states looking to issue procurements in the near future, the WestLotto award may serve as a meaningful reference point for their consideration,” concluded Mr. Turner.

With annual sales exceeding $1.7 billion, proceeds from the Lottery are distributed to several charitable institutions, with an emphasis on social welfare, culture, and environmental protection in Nordrhein-Westfalen.

In addition to WestLotto, GTECH currently provides online lottery services to Sächsische LOTTO-GmbH in Saxony, and Lotterie-Treuhandgesellschaft mbH Thüringen in Thuringia.

GTECH also provides ongoing technical, marketing, and operations services for the German television game, Tele-BINGO, under a five-year contract with the German state lotteries of Berlin, Brandenburg, Saxony, Saxony-Anhalt, and Thuringia.

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.