LOTTOMATICA GROUP ANNOUNCES STRONG 2012 FIRST-QUARTER RESULTS

Consolidated Financial Highlights

• Revenues and EBITDA up 11% and 10%, respectively, versus 1Q 2011
• GTECH Lottery same store revenues up 12%; higher jackpot activity and strong instants performance contributing to growth
• Significant contributions from Machine Gaming, 10eLotto, and Interactive in Italy
• NFP at €2.65 billion versus €2.74 billion at December 31, 2011, due to strong cash flow generation
• Net income (Parent) more than doubled to approximately €58 million
• Board of Directors approves governance structure

Lottomatica Group 2012 First-Quarter Results Comparison

EBITDA is principally comprised of operating income plus depreciation, amortization, and impairment. 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.

ROME (ITALY) – PROVIDENCE, RHODE ISLAND (US), May 9, 2012 – Lottomatica Group S.p.A.'s Board of Directors, chaired by Mr. Lorenzo Pellicioli, today approved the consolidated financial statements for the first quarter which ended March 31, 2012.

Marco Sala, CEO of Lottomatica Group, said, "Lottomatica Group had a record quarter and we continue to build on our momentum from 2011. Most importantly, we are encouraged that the sources of our growth are diversifying and balancing in relation to business units and geographies. In Italy, machine gaming and interactive games are making substantial contributions to growth. GTECH same store revenues are exceeding expectations with an impressive performance in the U.S. as well as internationally. And, there is an increasing interest around the world in innovations and lottery privatizations."

"The first quarter of 2012 was the Group's best quarter to date in terms of EBITDA and Operating Income," said Alberto Fornaro, CFO of Lottomatica Group. "The extraordinary first quarter jackpot volume and strong instant ticket sales in the U.S., together with the continued growth of Machine Gaming in Italy, allow us to be on track to achieve our 2012 guidance. We are also confirming our year-end target for the Group's Net Financial Position (NFP). The significant cash flow generation in the first quarter will provide, in part, the capacity to fund the second quarter dividend and minority payments, and significant cash outlays for income taxes expected in the second and third quarters."

For the first quarter ended March 31, 2012, Lottomatica Group experienced revenue growth across all segments, led by GTECH. Revenues were up 11.1% to €780.3 million, compared to €702.1 million in the first quarter of 2011. Service revenue grew 9.2% to €737.8 million and product sales grew to €42.5 million from €26.6 million. Revenue growth was driven by strong year-over-year jackpot activity, instant ticket sales in California, Illinois and Texas, and Machine Gaming in Italy.

EBITDA was €280.4 million in the first quarter of 2012, up 9.6% compared to €255.9 million in the same period last year. The increase in EBITDA was primarily driven by higher revenues and profits from GTECH and Machine Gaming in Italy, and a €4.5 million one-time recovery of a foreign investment.

Operating income was €169.5 million in the first quarter of 2012, compared to €152.7 million in the same period last year, up 11.1%.

Income before income tax expense was €123.9 million, up 67.0% compared to the first quarter of last year, when a €34.5 million net foreign exchange impact was recorded due to unrealized losses on GTECH's euro-denominated debt.

Net income attributable to the parent was up 163.0% to €57.6 million versus €21.9 million last year.

Net cash flows from Operating Activities were €185.3 million in the first quarter of 2012, compared to €205.5 million in the first quarter of 2011.

Capital expenditures totaled €52.4 million, down from €107.2 million in 2011. In Italy, expenditures were driven primarily by the continued investment in the Gaming Machine market while GTECH's expenditures were largely made up of a diverse base of ongoing maintenance expenditures.

At March 31, 2012, Consolidated Shareholders' Equity totaled €2.59 billion. Lottomatica Group had a Net Financial Position (NFP) of €2.65 billion, compared to €2.74 billion as of December 31, 2011.

First-Quarter Revenues by Segment Comparison

Note*: SPIELO International includes GTECH G2 following the integration of the two business segments.

Italian Operations

Total revenues from Italian Operations grew 4.8% to €481.8 million, from €459.9 million in the first quarter of 2011, despite a difficult economic environment. The €21.9 million increase was due to higher revenues from Machine Gaming and Interactive, partially offset by lower revenues from Lotto attributable to lower late number wagers and from instant tickets, as well as higher sports betting payouts.

Machine Gaming wagers were €3.16 billion in the first quarter of 2012, up 35.4% over the first quarter of 2011. Revenues from Machine Gaming were up 24.2% to €169.3 million in the first quarter, compared to €136.3 million in the same period last year, net of the gaming tax increase on VLTs to 4% from 2% last year. The increase in revenue was attributable to VLTs, which generated €823.0 million of additional wagers versus the first quarter of 2011, gross of re-played credits.

Instant-ticket wagers were approximately €2.62 billion in the first quarter of 2012, versus €2.73 billion in the same period last year. The 4% decline in wagers was partially attributable to inclement weather conditions and transportation strikes in February. In March 2011, Scratch & Win had record wagers following the launch of the €20 ticket introduced on a permanent basis during the first quarter of last year. In the first quarter of 2012, new tickets with €3, €5, and €10 price points were introduced. Approximately 570 million Scratch & Win tickets were sold in the first quarter of 2012, with an average price point of €4.59.

Lotto wagers were €1.57 billion, compared to €1.75 billion in the first quarter of last year. In the first quarter of 2011, a higher incidence of late numbers occured which did not repeat in the first quarter of this year. Excluding the late-numbers effect, the underlying wagers performance was positive, due to 10eLotto.

Interactive wagers totaled €589.9 million, versus €117.4 million in the first quarter of 2011, up more than 400%. The increase in wagers was primarily attributable to the launch of new games including Poker Cash and Casino games, which commenced in the second half of 2011.

Wagers from sports betting in Italy, including pool games, totaled €250.4 million in the first quarter of 2012, compared to €296.5 million in the first quarter of last year.

GTECH Lottery

Total GTECH Lottery revenue for the first quarter of 2012 was up 25.3% to €237.5 million compared to €189.5 million in the first quarter of 2011. GTECH Lottery same store revenue in the first quarter was up approximately 12% year-over-year, driven by higher jackpot activity in the U.S., as well as increased instant-ticket sales in California, Illinois and Texas, among other states. Additionally, lottery sales for GTECH's customer in the Czech Republic are returning to normalized conditions, following its bankruptcy last year.

During the first quarter of 2012, GTECH also benefited from the largest-ever multi-state jackpot of $656 million. Of the 44 jurisdictions offering the Mega Millions multi-state game, more than half are GTECH's online customers.

Additionally, the Powerball consortium began selling tickets at the $2 price point on January 15, 2012. Early results are encouraging and expected to drive future growth for GTECH's customers.

Under the operation of Northstar Lottery Group, instant-ticket sales in Illinois increased 41.1% versus the first quarter of 2011. Online sales in Illinois also grew 21.6% year-over-year. In an effort to continue expanding the retailer base, the Illinois Lottery approved 1,538 new retailers in the quarter. The Lottery also began selling lottery tickets over the Internet on March 25. While still in its early stages, preliminary results are encouraging.

SPIELO International

During the quarter, Lottomatica Group merged its GTECH G2 segment into SPIELO International. With the convergence between land-based and interactive gaming, SPIELO International expects to leverage resources to provide customers with higher-performing content, faster responsiveness, and an increased level of innovation. The combined entities will also be able to deliver a seamless product offering across different channels for both operators and players.

First-quarter revenues for SPIELO International were up 2.0% to €69.2 million when compared to the same period last year. The increase was driven by higher recurring revenues from participation markets in the U.S. During the quarter, SPIELO International also received a manufacturer's license for the Illinois VGT program; continued working with Canadian lottery customers to finalize VLT and central system replacement agreements; and continued deploying VLTs to the Italian VLT market, where at full program roll-out, it will deploy a total of 14,850 VLTs, representing a 26% machine market share.

During the quarter, SPIELO's G2 division secured 12 new customers in the newly-regulated Spanish market and successfully launched products with five new partners in the newly-regulated Danish market. Additionally in the quarter, Manitoba Lotteries Corporation joined the Canadian Poker Network, and in South Africa, SPIELO's G2 division launched Margin Maker™ through its partnership with Stan James.

Additional Information

The Board of Directors completed the authorization process for the share buy-back plan, which was approved by today's ordinary Shareholders' Meeting for the purpose of acquiring and disposing of the Company's ordinary shares. The plan allows the Company to purchase, in bulk or in several stages, the maximum number of ordinary shares permitted by law, representing an interest not exceeding 20% of the Company's share capital in compliance with the terms and conditions approved by the Shareholders' Meeting. The authorization to purchase treasury shares is allowed for the maximum period of time permitted by the law, i.e. 18 months, while disposal of treasury shares would be allowed with no time limit. As of today, neither the Company nor its subsidiaries hold treasury shares nor has the Company any immediate plans to acquire shares.

Additionally, the Board of Directors appointed:

• New Board member Donatella Busso to serve as a new member of the Internal Audit and Compliance Committee, following the resignation of Severino Salvemini from all offices held within the Company;
• Alberto Dessy to serve as Chairman of the Internal Audit and Compliance Committee and as Chairman of the Surveillance Body, established pursuant to Leg. Decree no. 231/2001, following the resignation of Severino Salvemini.

Moreover, the Board acknowledged the independence requirements of Donatella Busso, Alberto Dessy, and Gianmario Tondato Da Ruos pursuant to the law and the Corporate Governance Code promoted by Borsa Italiana S.p.A.

Declaration

The manager responsible for preparing Lottomatica Group's financial reports, Alberto Fornaro, 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 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 2011, Lottomatica Group had €3.0 billion in revenues and 8,000 employees in over 60 countries.

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For further information:

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

Lottomatica Group Consolidated Financial Statements to follow: