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LOTTOMATICA ANNOUNCES 2007 RESULTS FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2007

Revenues of €1.22 billion, compared to €566 million from nine months of Lottomatica's Italian stand-alone operations with only one month of GTECH operations in 2006

EBITDA of €541 million and Operating Income of €324 million for the nine months of 2007 compared to €270 million and €200 million, respectively, for the nine months of 2006 Net Income of €72 million, compared to €39 million in 2006

Provides Updated Guidance for 2007 and Preliminary Guidance for 2008

Leadership Changes Announced

ROME (ITALY) - PROVIDENCE, RHODE ISLAND (US), November 08, 2007 - The Board of Directors of Lottomatica S.p.A., chaired by Mr. Lorenzo Pellicioli, approved today the consolidated accounts of Lottomatica Group for the first nine months of 2007, which ended September 30, 2007.

"Lottomatica's financial performance was good, and the fundamentals of our core business continue to experience positive growth," said W. Bruce Turner, CEO of Lottomatica Group . "GTECH has had positive results with the implementation of a program to enhance same store revenues. Our Italian operations experienced continued growth. With a first-to-market rollout of our sports betting brand, we are generating significant player interest that we believe will be sustainable. And, the Italian scratch and win segment continues to perform at record levels."

"Our financial results are positive and in line with our guidance, despite some unfavorable market conditions," said Stefano Bortoli, CFO of Lottomatica Group . "We experienced overall sustainable high margins, and as we continue to move forward with our disciplined execution of numerous initiatives, we believe we will improve our financial position through cash flow generation."

Lottomatica Group 2007 First Nine Months Results

Lottomatica Group Consolidated Income Statements (€/M)	Nine Months Ended September 30, 2007	Nine Months Ended September 30, 2006
Revenues	1,221.7	566.0
EBITDA *	541.5	270.1
EBITDA %	44.3%	47.7%
Operating Income	324.2	200.4
Net Income	72.4	38.8
Net Income after Minorities	46.9	32.8

Note: 2006 reflects nine months of Lottomatica Italian stand-alone operations and one month of GTECH operations.

*EBITDA represents operating income plus depreciation, amortization and write-downs and other non-cash items. EBITDA is considered an alternative performance measure that is not a defined measure under International Financial Reporting Standards ("IFRS") and may not take into account the recognition, measurement and presentation requirements associated with IFRS. We believe that EBITDA assists in explaining trends in our operating performance, provides useful information about our ability to incur and service indebtedness and is a commonly used measure of performance by securities analysts and investors in the gaming industry. EBITDA should not be considered as an alternative to operating income as an indicator of our performance or to cash flows as a measure of our liquidity. As we define it, EBITDA may not be comparable to other similarly titled measures used by other companies.

Revenues for the first nine months of 2007 totaled €1.22 billion, including approximately €623.0 million from GTECH operations and €598.7 million from Italian operations. For the same period in 2006, total revenues were €566.0 million, including approximately €492.4 million from Italian operations and €73.6 million from GTECH's operations. Overall, revenues grew 115.9% year-over-year, while revenue from Italian operations grew 21.6% year-over-year.

EBITDA was €541.5 million with an EBITDA margin of 44.3%.

Operating income was €324.2 million for the first nine months of 2007, with a 26.5% margin.

Net income was €72.4 million for the nine months ended September 30, 2007, compared to €38.8 million for the same period last year, up 86.5%.

Net income attributable to equity holders of the parent for the nine months ended September 30, 2007 was €46.9 million, compared to €32.8 million for the same period last year.

GTECH Operating Results and Business Highlights

Revenues for the first nine months of 2007 were €623.0 million, with approximately €554.0 million from the Lottery segment, €47.0 million from Gaming Solutions, and approximately €22.0 million from Commercial Services.

During this period, GTECH continued to focus its efforts on the core lottery business and expanding its Gaming Solutions business. The Company secured contracts in the United Kingdom and Kansas, and received a contract extension in New York. Over the life of the U.K. contract, GTECH expects to receive revenues of more than €600 million, with the Kansas contract expected to generate revenues for GTECH of approximately €60 million. The New York extension is expected to generate revenues to GTECH of approximately €147 million.

Additionally, customers in Denmark, Belgium, and Western Canada awarded GTECH product sale agreements for new lottery terminals.

In the Gaming Solutions vertical, GTECH was chosen to provide a new server-based gaming system and interactive video terminals to Svenska Spel in Sweden.

GTECH's subsidiary, Spielo, was selected to provide Manitoba Lotteries Corporation with new slot/bingo gaming terminals. Both contracts combined are expected to generate total revenues to GTECH of approximately €50 million.

Italian Operating Results and Business Highlights

For the first nine months of 2007, revenues from Italian operations grew approximately 21.6% to €598.7 million, from €492.4 million in the first nine months of 2006.

Lotto and instant ticket wagers grew approximately 38.3% to €10.6 billion in the first nine months of 2007, from €7.7 billion for the same period last year, as strong Instants lottery performance more than offset the slight decrease in Lotto.

Total Lotto wagers reached €4.7 billion, down slightly against €5.0 billion in the first nine months of 2006. Wagers in the first nine months of 2006 included a record late number, Cagliari 34. Core wagers were comparable to the same period last year at €3.9 billion. Lotto revenues were €302.9 million, compared to €323.7 million in the same period last year.

The continued strong performance of instant tickets, resulted in sales of approximately €5.9 billion, compared to sales of approximately €2.7 billion, in the first nine months of 2006, an increase of 123.6% year-over-year. Approximately 1.7 billion Scratch & Win tickets were sold in the first nine months of 2007, compared to 1.1 billion in the same period last year. The average price point grew from €2.3 to €3.4, driven principally by the introduction of the €10 lottery ticket in January 2007, which generated new sales of €1.8 billion during the nine months ended September 30, 2007. Revenues for the Instant Lottery business totaled €207.9 million compared to €94.4 million during the first nine months of 2006, an increase of 120.3%.

Sports betting wagers, with over 1,000 locations in operation, were approximately €26.7 million, for the months of August and September. Revenues from sports betting were approximately €5.2 million, equal to gross wagers net of prize payouts.

Revenues from Gaming Solutions were up 163.9% over the same period last year, driven by the increased placement of Amusement with Prizes (AWP) machines, from approximately 10,000 machines installed at the end of 2006, to approximately 21,000 machines installed as of the end of September 2007.

Revenues from Commercial Services were stable compared to the same period last year, despite the negative impact of regulatory changes.

Consolidated Cash Flow and Net Financial Position

At September 30, 2007, Lottomatica Group had a Net Financial Position of €2.31 billion, with Cash and Cash Equivalents of approximately €444.2 million at the end of period. During the nine months ended September 30, 2007, the Group generated €369.3 million of net cash flows from operating activities, compared to €106.2 million in the same period last year.

Consolidated Shareholders' Equity

Consolidated shareholders' equity totaled €1.77 billion.

Additional Information

Third-Quarter Financial Results

Revenues for the third quarter ended September 30, 2007 totaled €386.2 million, including approximately €195.3 million from GTECH operations and €190.9 million from Italian operations. Overall, revenues grew 71.3% year-over-year, with one month of contribution from GTECH operations in the third quarter of last year.

EBITDA was €160.8 million with an EBITDA margin of 41.6%. Operating Income was €84.8 million for the quarter, and Net income was €4.3 million for the quarter ended September 30, 2007, compared to Net income of €6.9 million in the third quarter of 2006.

Revenues for the third quarter of 2007 include €195.3 million from GTECH operations, with approximately €173.9 million from the Lottery segment, €18.0 million from Gaming Solutions, and approximately €3.4 million from Commercial Services.

During the quarter, GTECH secured a 19 month contract extension with the New Jersey Lottery. After the close of the third quarter, GTECH signed a long-term contract in Oregon, valued at €50 million, and also extended its contract with the Illinois Lottery for an additional year through October 16, 2008, with expected revenues to GTECH of approximately €24 million over the one-year extension period.

Revenues from Italian operations grew approximately 25.7% to €190.9 million, from €151.9 million in the third quarter of 2006. Lotto wagers were stable at €1.53 billion while Instant ticket sales were approximately €1.72 billion, compared to sales of approximately €883 million in the third quarter of 2006.

Leadership Changes

Also at the Board of Directors meeting, it was announced that W. Bruce Turner, Chief Executive Officer of Lottomatica S.p.A. and GTECH Corporation, has tendered his resignation effective from December 31, 2007, at the latest. Citing his intent to pursue an opportunity to start an investment firm, Mr. Turner noted that he has overseen the successful integration of GTECH and Lottomatica and positioned the Company well for future growth. The Board of Directors accepted Mr. Turner's resignation and thanked him for his service.

Upon Mr. Turner's departure, Lorenzo Pellicioli, Chairman of Lottomatica S.p.A., will take on the additional responsibilities of Chief Executive Officer of Lottomatica Group. In addition, Jaymin Patel, currently President and Chief Operating Officer of GTECH, will become Chief Executive Officer of GTECH Corporation.

Commenting on the changes, Mr. Pellicioli said , " I am confident in Lottomatica's growth plan and committed to driving its continued success. I look forward to working with our operational leaders, Marco Sala - Managing Director for the Italian operations - and Jaymin Patel, to ensure that we are successful in taking advantage of the significant opportunities ahead and deliver enhanced value to our shareholders. "

Updated Guidance for 2007 and Preliminary Guidance for 2008

Updated guidance for 2007

Lottomatica has updated its guidance for 2007 and provides preliminary guidance for the full year of 2008.

Lottomatica expects total revenues in the range of €1.65 billion to €1.68 billion, for the year ending December 31, 2007, reflecting the strengthening of the euro against the US dollar.

Gross sales for Italian Scratch & Win is expected in the range of €7.5 billion to €7.8 billion for the full year 2007. Italian Lotto sales are expected to be around €6.2 billion.

At the GTECH level, same store revenues are expected to be in the range of 4% to 5% in the full year.

EBITDA for the full year is expected in the range of €695 million to €700 million. EBITDA is impacted by one time costs of approximately €10 million to €15 million associated with the restructuring plan put in place by GTECH in the fourth quarter of 2007. This item is offset by a one time recovery related to legal matters in Brazil. In October 2007, GTECH's subsidiary in Brazil received a ruling to release 40 million Brazilian reais (approximately €14 million) held in escrow in a Brazilian court account in connection with the injunction brought by the Brazilian Federal Attorneys in 2004. The decision to release the funds was made unanimously by a five-judge panel in the Superior Tribunal Justice, Brazil's highest court for non-constitutional matters. GTECH has been advised that this ruling cannot be appealed to a higher court.

Operating Income is expected to be in the range of €405 million to €410 million, with margins of 24% to 25%.

The effective tax rate is expected in the range of 47% to 48%, for the full year.

Earnings per share as reported are estimated in the range of €0.35 to €0.37.

Preliminary guidance for 2008

2008 guidance is based on a €/$ exchange rate of 1.40 and on the consolidation of Atronic by the end of the first quarter of 2008.

Lottomatica expects total revenues in the range of €1.90 billion to €2.00 billion, for the year ending December 31, 2008.

Italian Scratch & Win sales are expected to grow at a low single digit rate in 2008, while Lotto sales are expected to be stable.

At the GTECH level, same store revenues are expected to be in the range of 4% to 5% in the full year.

EBITDA for the full year is expected in the range of €750 million to €765 million, and Operating Income in the range of €440 million to €455 million.

The effective tax rate is expected to be lower than that of 2007 and in the range of 42% to 44%, for the full year.

Earnings per share as reported are estimated in the range of €0.67 to €0.77.

Other Information

In December 2003, Lottomatica issued a €360 million bond due December 22, 2008. The Euro bond has a fixed coupon payment of 4.80%, payable annually each December. Pursuant to Italian Stock Exchange requirements, the Company notes that the bond is set to expire in less than 14 months.

Declaration

The manager responsible for preparing the Company's financial reports, Stefano Bortoli, declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the document results, books, and accounting records.

Lottomatica is one of the world's largest commercial lottery operators and a market leader in the Italian gaming industry. GTECH is a leading gaming technology and services company, providing innovative technology, creative content, and superior service delivery. GTECH and Lottomatica together create a fully integrated lottery operator and gaming technology solutions provider - a combined company with worldwide scale, considerable financial strength, and industry-leading customer solutions. Lottomatica is majority owned by De Agostini, which belongs to a century-old publishing, media, and financial services group. Lottomatica is publicly traded on the Italian Stock Exchange (LTO), and in 2006, had more than €1.7 billion in revenues and 5,900 employees in over 45 countries when combined with GTECH.

 

For further information:

  AD HOC Communication Advisors 02/7606741

Mario Pellegatta - Matteo Cidda 335/1415585

This press release and the previous ones are available on the web site: www.adhoccommunication.it

Lottomatica web site: www.gruppolottomatica.it

GTECH contact: Robert K. Vincent Public Affairs 1-401-392-7452

GTECH web site: www.gtech.com

 

Lottomatica Group Consolidated Financial Statements to follow:

Lottomatica Group Consolidated Income Statements nine months ended September 30, 2007 and 2006

Lottomatica Group Consolidated Balance Sheets as of September 30, 2007 and December 31, 2006

Lottomatica Group Consolidated Cash Flow Statements nine months ended September 30, 2007 and 2006

Lottomatica Group Consolidated Income Statements three months ended September 30, 2007 and 2006