ROME, ITALY - PROVIDENCE, RI (U.S.) – (July 17, 2008) – Lottomatica S.p.A.’s wholly-owned subsidiary GTECH Corporation has signed a four-year contract extension with the California Lottery to provide online/instants central system enhancements, new lottery terminals, a variety of self-service products, messaging display units, and ongoing services. GTECH has been the Lottery’s primary vendor since 1986. The four-year contract extension will commence in October 2009. The Company expects to receive revenues of approximately $220 million to $250 million over the contract term. Revenues under the extension will begin in the fourth quarter of 2008, and reach a normalized run rate in 2009.

“GTECH is committed to supporting the California Lottery's Strategic Business Plan, and welcomes this tremendous opportunity to assist them in optimizing sales and business performance. The four-year contract extension allows substantial investment into sustainable sales growth, positioning the Lottery well for incremental revenue to California Education,” said GTECH President and CEO Jaymin B. Patel.

“Under the extension, GTECH will continue to work even more closely with the California Lottery to apply industry-wide best practices, expand the quantity, quality and diversity of their retail base, provide additional convenience for players and retailers alike, further enhance their wagering system, and rollout new electronic point-of-sale advertising network-wide,” continued Mr. Patel. “By investing in state-of-the-art technology, strategic retail expansion, marketing and operational best practices, the Lottery is pro-actively leveraging the population growth and demographic changes in California to reach new players in new markets, in a socially responsible way.”

California Lottery Director Joan Borucki said, “As part of our commitment to our players, retailers, employees, and most importantly, our beneficiary, public education, we are pleased to have our contract and business partnership with GTECH for four additional years at a significant savings. As an important component of our Business Plan, along with our ongoing technology and service needs, GTECH will be providing the California Lottery a total value of $40 million in necessary equipment, gaming system software enhancements, and discounts on future equipment orders that will go a long way toward helping us achieve our strategic goals through the execution of our Business and Marketing Plans.”

This four-year extension agreement will result in a 15 percent growth in total Lottery retailers with 3,085 new Altura® terminals, adding to the existing 20,000 terminal base; the full deployment of Enterprise Series Multimedia (ESMM) player messaging and transition display technology with 10,560 19” monitors; and, with the roll-out of 2,335 Ticket-Scan™ units, the full statewide deployment of self-service ticket checkers allowing players secure access when identifying winning tickets in addition to the amount won. GTECH will also upgrade the Enterprise Series system by enhancing the Lottery's back office, inventory management, and reporting systems. Moreover, GTECH will provide instant-ticket vending machine (ITVM) units with online lottery self-service capability via 775 Lottery To Go™ units, and an additional 500 Instant to Go™ units, GTECH's self-service instant-ticket dispenser.

GTECH will continue to maintain data centers in Sacramento, California, and in Austin, Texas. Moreover, GTECH will continue to offer ongoing services to the Lottery such as maintenance of the central system, terminals, and communications network; field service; retailer training; marketing support; and call center support services.

Lottomatica 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 Company is the only vertically integrated full service lottery company. Lottomatica 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 2007, the Company had approximately €1.7 billion in revenues and 5,900 employees in over 50 countries when combined with GTECH.

For further information: