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GTECH SIGNS SUBCONTRACT WITH VERIZON TO PROVIDE EQUIPMENT AND SERVICES FOR NEW COMMUNICATIONS NETWORK IN NEW YORK
Company's First-Ever Communications Network Installation in New York

(West Greenwich, Rhode Island  -- December 26, 2002) – GTECH Holdings Corporation (NYSE: GTK) today announced that its wholly-owned subsidiary, GTECH Corporation, has signed a multi-year subcontract with Verizon Select Services, Inc. (VSSI) to provide equipment and services for a fully integrated communications network system for the New York Lottery. GTECH's subcontract with VSSI, which is expected to commence on July 1, 2003, includes extension options and follows a competitive procurement process that involved other telecommunications network providers. This represents GTECH's first-ever communications network installation in the State of New York.

"To meet the New York Lottery's changing requirements, GTECH, VSSI, and Verizon New York Inc. proposed a flexible telecommunications solution that will provide improved performance and the highest level of security and integrity," said GTECH President and CEO W. Bruce Turner. "We are excited about working with Verizon and look forward to providing GTECH's proven communications technology along with superior technical services," continued Mr. Turner.

VSSI and Verizon New York Inc. will replace the New York Lottery's existing communications network with an enhanced DDS (Digital) local access network and associated central office equipment. GTECH's subcontract with VSSI requires GTECH to install approximately 1,700 VSATs (Very Small Aperture Terminals), which will provide highly reliable communication between the New York Lottery's central system and a number of geographically dispersed retailers. GTECH will also provide ongoing services to VSSI, including telecommunications network management, network interface equipment, technical support, and overall project management. With respect to its contract with VSSI, GTECH expects to generate revenues of approximately $23 million over the initial term of the contract.

GTECH has supplied equipment and services to the New York Lottery since 1986. The New York Lottery is the nation's largest lottery in terms of total sales and is the sixth largest lottery in the world.

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 4,300 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.