ROME (ITALY) and PROVIDENCE, RI (USA) – December 23, 2010 – Lottomatica Group S.p.A. announced that its subsidiary, GTECH Corporation, has signed a contract to provide Israel’s National Lottery operator, Mifal Hapayis, with a new online/instant ticket central system, online and self-service terminals, multimedia displays, and support services, following a competitive procurement. The 10-year contract commenced on December 9, 2010, contains three one-year extension options, and is expected to generate revenues to GTECH of approximately €20 million over the contract period. Mifal Hapayis has been a valued GTECH customer since 1999 when GTECH brought the Lottery’s games fully online.

"GTECH's primary focus is our lottery customers," said GTECH President and CEO Jaymin B. Patel. "We could not be more pleased and appreciative to have been selected by highly-regarded lottery operator, Mifal Hapayis, to continue our successful relationship over the next decade."

"Throughout our 11-year partnership, GTECH and Mifal Hapayis have shared a commitment to the highest quality in every aspect of lottery products and system performance," continued Mr. Patel. "During that time, we have also worked closely with Mifal Hapayis to understand their complex business processes and vision for the future. As such, we have developed a customized solution set and growth strategy based upon proven industry best practices that are essential to helping the Lottery meet their requirements today – and into the future. All of these elements are key to assisting the Lottery in continuing to grow sales, improve operational efficiency, and increase profitability."

"With a strong technology partner such as GTECH, we can continue developing our business while working closely with them to deliver a system with enhanced functionality to enable Mifal Hapayis to meet the expectations of Israeli players over the next decade," said Mifal Hapayis CEO Saul Sotnik.

Under the terms of the contract, GTECH will replace Mifal Hapayis' existing central system with the Company's Enterprise Series solution, benefiting both retailers and players alike. The Company will also replace the Lottery's online terminals with 3,000 Altura® GT1200 terminals, enabling exciting new games and multimedia possibilities.

GTECH will introduce ES MultiMedia digital advertising displays to stimulate increased brand awareness of Mifal Hapayis’ product line across the entire retail network at the point-of-sale.

The contract also calls for GTECH to install Ticket-Scan™ machines, the Company's responsible gaming self-service ticket checkers that allow players secure access when identifying winning tickets.

The contract will allow for a Customer Card & Player Tracking system which will be based on GTECH’s contemporary player services package. A Player Card will facilitate a player loyalty and relationship management system and will provide customer identification, automatic or manual payment process for winning tickets from registered customers, and the potential for using the customer card and play information for special activities such as discounts, promotions, advertising, information, and integration with the Mifal Hapayis CRM system.

GTECH's Simple Keyless Validation (SKV) technology will enable Mifal Hapayis to offer its retailers an easier and faster but equally secure method for validating instant tickets without increasing the footprint of lottery hardware on the retailer's counter. SKV uses proven barcode reading technologies to protect the Lottery from fraud.

Over the duration of the contract, GTECH will provide ongoing services to Mifal Hapayis including central system and terminal maintenance; software licensing; and hotline management.

Since its partnership began with Mifal Hapayis in 1999, GTECH has successfully completed more than 100 conversions and/or implementations in dozens of jurisdictions around the globe.

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Lottomatica Group is a market leader in the Italian gaming industry and one of the largest Lottery operators in the world based on total wagers and, through its subsidiary GTECH Corporation, is a leading provider of lottery and gaming technology solutions worldwide. Together, the companies are the only vertically integrated full service lottery group. Lottomatica Group is majority owned by De Agostini, which belongs to a century-old publishing and media services group. Lottomatica is listed on the Stock Exchange of Milan under the trading symbol “LTO”. In 2009, Lottomatica Group had approximately €2.2 billion in revenues and 7,600 employees in over 50 countries.

For further information:

This press release and previous ones are available on Lottomatica and GTECH web sites: www.lottomaticagroup.com  - www.gtech.com