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LOTTOMATICA ANNOUNCES THAT ITS SUBSIDIARY GTECH FORMS JOINT VENTURE WITH CHINA LOTSYNERGY TO PROVIDE NATIONWIDE KENO SYSTEM IN CHINA

ROME (ITALY) - PROVIDENCE, RHODE ISLAND (US), December 19, 2007 - Lottomatica S.p.A. announced that its wholly-owned subsidiary, GTECH Global Services Corporation Ltd., has acquired 50% of Tabcorp International Hong Kong Limited (TIHK), to be renamed as CLS-GTECH Company Limited (CLS-GTECH), for the purpose of providing a nationwide KENO system for Welfare lotteries throughout China. TIHK had been formed as a joint venture between TabCorp International No.1 Pty Limited (Tabcorp) and China LotSynergy Limited (CLS) in 2005, and had launched a trial of the KENO system. CLS acquired Tabcorp's interest in the partnership immediately after which GTECH acquired a 50% interest in the joint venture for US$20 million.

Commenting on the acquisition, GTECH President and incoming CEO Jaymin B. Patel said, "The opportunity to partner with China LotSynergy in creating a national gaming network to offer KENO in China has significant potential for us. CLS is one of the premier lottery technology service providers in China and shares our commitment to innovation and service excellence. We look forward to fully implementing the KENO system and creating a national platform to offer additional services and products for the Welfare lotteries in China."

The KENO system which was provided by Tabcorp is currently operating several hundred online terminals in video lottery halls. CLS-GTECH envisions that the online terminal base will be expanded in the near term by approximately 2,000 additional terminals which are awaiting deployment in early 2008, with the potential to roll out more than 30,000 terminals across China over the next several years. The KENO license was awarded by the China Welfare Lottery Issuance and Administration Center , and approved by the Ministry of Finance. It is envisioned that the parties will offer new products and services through the system over time, and, under specified conditions, GTECH has the potential to provide technology and services to the joint venture.

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 approximately €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