LOTTOMATICA ANNOUNCES RESULTS FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2008

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.
2 $/€ FX average: 1.35 in 1st Nine Months ’07; 1.52 in 1st Nine Months ’08

ROME (ITALY) - PROVIDENCE, RHODE ISLAND (US), November 13, 2008 – The Board of Directors of Lottomatica S.p.A., chaired by Mr. Lorenzo Pellicioli, today approved the consolidated accounts for the first nine months of 2008, which ended September 30, 2008.

Lorenzo Pellicioli, Chairman & CEO of Lottomatica Group, commented: “Despite a huge upheaval in the world’s economies, the strategy that we have been executing for Lottomatica Group remains on course and is delivering very good results. In Italy, we have once again delivered a very impressive performance in the third quarter, across all product lines. At GTECH, we have had an extremely successful quarter of commercial developments, with new contract wins and extensions. Our strategy of global diversification affords us a natural hedge against market fluctuations and a broad perspective on opportunities. All of these factors, combined with our successful debt refinancing, is evidence of the sustainability of our business during unprecedented economic uncertainty.”

Stefano Bortoli, CFO of Lottomatica Group, said: “Our business has performed very well in the third quarter. Group revenues experienced double digit growth versus the same period the previous year. EBITDA made solid gains during a period when we are integrating a number of strategic acquisitions into the business. Earnings per share and net income have also shown remarkable growth, and a major refinancing of our debt was successfully arranged, which demonstrates confidence in the resilience of our business.”

Group revenues for the nine months ended September 30, 2008 totaled €1.4 billion, including €650.5 million from GTECH and €751.1 million from Lottomatica. Overall, revenues grew 15% year-over-year, and 19% on a constant currency basis. Revenues from Lottomatica grew 26% year-over-year.

Reported EBITDA was €571.2 million, up 5% compared to the first nine months of 2007, with a 41% margin. At constant currency, EBITDA would have been up 9%.

Operating income was €337.1 million for the first nine months of 2008, up 4% over the same period last year

Net income after minorities was €106.4 million, up 83% over the first nine months of 2007, primarily due to the reduction in the effective tax rate in Italy.

Contract Extension in Georgia
GTECH entered into a three-year contract extension with the Georgia Lottery, a lottery customer since 1993. The extension will commence in September 2010. In consideration of the extension, GTECH will make investments to help drive growth for the Georgia Lottery. It is estimated that the contract extension will generate approximately $125 million in revenue for GTECH over the three-year period.

GTECH Operating Results and Business Highlights
At constant currency, GTECH’s revenues for the first nine months of 2008 would have been €705.1 million, compared to €623.0 million in the first nine months of 2007. As reported, GTECH contributed €650.5 million of revenue, with €529.6 million from the Lottery segment, €89.5 million from Gaming Solutions, and €31.4 million from Interactive. Same-store revenue growth in the first nine months of 2008 was 4%, compared to the same period last year.

As reported, EBITDA for the first nine months of 2008 amounted to €203.3 million. At constant exchange rates, EBITDA for the first nine months of 2008 would have been €224.4 million, compared to €222.3 million in the first nine months of 2007.

In the first nine months of 2008, GTECH maintained its leadership position in the lottery industry by winning new contracts, and retaining existing customers, as well as growing perimeter businesses.

In the U.S., GTECH signed online lottery contracts with customers in West Virginia and Michigan, and was recently awarded an online contract with a new customer, the South Dakota Lottery. Internationally, GTECH signed new lottery contracts in Chile and the Dominican Republic, and successfully launched a lottery system in Belarus and a sports-betting system in Ghana. The Company extended lottery contracts with customers in California, Illinois, Ireland, Finland, and Morocco. Additionally, GTECH Printing Corporation secured instant-ticket printing contracts with lotteries in Florida, Oregon, Washington, Kansas, and Mexico.

After the close of the third quarter, GTECH was awarded a contract to provide the Maryland Lottery with 1,000 Instant Ticket Vending Machines, following a competitive procurement. Also after the close, GTECH’s VLT subsidiary, SPIELO, signed a contract with the Oregon Lottery for 2,500 new prodiGi Vu™ terminals. In addition, GTECH, working together with SPIELO, will supply and operate the central gaming system that will monitor electronic gaming machines at up to six gaming facilities in Kansas.

GTECH’s New Media and Sports Betting division continues to enjoy growth. On a proforma basis, Boss Media and St Minver have seen revenue growth of 34% in the third quarter compared to the same period last year. Boss Media extended key contracts, launched a new casino brand in association with Paddy Power, and further developed its International Poker Network. St Minver expanded its International Bingo Network and signed several new customers including the British newspaper, The Daily Mail.

Finsoft’s third quarter revenue grew at a healthy rate, and it has been instrumental in helping GTECH to secure preferred-bidder status for interactive system bids in Switzerland, Belgium, and Chile.

Year to date, GTECH and its subsidiaries have been awarded 26 contracts, including extensions, which are expected to contribute approximately €125 million to €135 million in revenue to GTECH in 2009, of which €40 million to €45 million will be derived from new contracts, based on a 1.25 USD/EUR exchange rate.

Lottomatica Operating Results and Business Highlights
Lottomatica delivered significant revenue and EBITDA growth in the first nine months of 2008, in the Lottery, Sports Betting, and the Gaming Solutions businesses.

Revenues grew 26% to €751.1 million, from €598.7 million in the first nine months of 2007. EBITDA grew to €367.9 million from €319.2 million in the first nine months of 2007. Growth was driven primarily by fixed-odds sports betting, the expansion of Scratch & Win, and Gaming Solutions.

Lotto and instant-ticket wagers grew 7.4% to €11.4 billion in the first nine months of 2008, from €10.6 billion for the same period last year, as the strong growth in Instants more than offset the decline in Lotto.

Total Lotto wagers were €4.4 billion, compared to €4.7 billion in the first nine months of 2007. Lotto revenues were €287.7 million, compared to €302.9 million in the same period last year.

The continued strong performance of instant tickets resulted in wagers of €6.9 billion, compared to wagers of €5.9 billion in the first nine months of 2007. More than 1.9 billion Scratch & Win tickets were sold in the first nine months of 2008, compared to 1.7 billion in the same period last year. The average price point grew to €3.6, compared to €3.4 in the previous year, mainly driven by the success of the €5 and €10 lottery tickets. Revenues from the Instant Lottery business totaled €243.7 million, compared to €207.9 million during the first nine months of 2007, an increase of 17%.

Pool games and betting generated €92.6 million of revenues from €487 million of wagers in the first nine months of 2008, due to the strong performance of the fixed odds sports-betting operations, which commenced in August 2007.

Revenues from Gaming Solutions were €58.4 million compared to €16.8 million last year. This was driven by the increased placement of Amusement with Prize (AWP) machines. At September 30, 2008, there were approximately 46,000 AWP machines installed, compared to 21,000 machines at the end of September 2007.

Lottomatica, in cooperation with Boss Media, also launched a new poker network in July, under the recently-released Internet skill gaming legislation in Italy, with players now able to play for cash prizes, beginning in early November. Although in its early stages, the Internet poker networks in Italy are enjoying great player acceptance.

In August 2008, Lottomatica also completed the acquisition of 100% of Toto Carovigno S.p.A., the owner of the Totosi sports-betting brand, for €36 million. In September, Totosi collected €13.4 million in sports-betting wagers, making Lottomatica the market leader in the Italian Internet sports-betting segment.

Consolidated Cash Flow, Net Financial Position, and Shareholders’ Equity
Net Cash Flows from Operating Activities generated €315.6 million in the first nine months, after having paid €52 million in higher taxes compared to the same period last year, primarily due to a net increase in cash tax paid based upon 2007 profit. During the first nine months of 2008, the Group invested €140.8 million in capital expenditures and €252.7 million in acquisition-related activities. In addition, the Group paid €125 million in dividends to shareholders, made net interest payments of €108.5 million, and made €75 million of share repurchases.

At September 30, 2008, Consolidated Shareholders’ Equity totaled €1.7 billion. Lottomatica Group had a Net Financial Position (NFP) of €2.84 billion, compared to €2.67 billion as of June 30, 2008, and €2.25 billion as of December 31, 2007. In addition to the investments mentioned above in acquisitions and share repurchases, NFP increased due to the affect of the strengthening of the U.S. dollar on the translation of the Company’s U.S. dollar-denominated debt to Euro.

Additional Information: Third-Quarter Results
Group revenues for the third quarter ended September 30, 2008 totaled €473.9 million, including €239.9 million from GTECH and €234.0 million from Lottomatica. Overall, revenues grew 22.7% versus the third quarter last year.

The Group’s EBITDA was €171.8 million with an EBITDA margin of 36%. Operating income was €87.1 million for the quarter, up 3% over the same period last year. Net income was €38.6 million for the quarter ended September 30, 2008, compared to €15.6 million in the third quarter of 2007.

GTECH revenues for the third quarter of 2008 totaled €239.9 million, including €182.5 million from Lottery, €40.9 million from Gaming Solutions, and €16.5 million from Interactive. Revenues in the third quarter of 2007 totaled €195.3 million. Approximately 51% of GTECH’s service revenues in the current quarter were derived from U.S. dollar denominated lottery contracts. On a constant currency basis, GTECH revenues for the third quarter increased by 28% compared to the same period last year. Same-store service revenue growth was 3% compared to the third quarter of 2007.

Lottomatica revenues grew 22.6% to €234 million, from €190.9 million in the third quarter of 2007. Lotto and instant-ticket wagers grew 7.5% to €3.5 billion in the third quarter of 2008, from €3.3 billion in the same period last year. Lotto game wagers were €1.4 billion, down slightly from the third quarter of 2007. Instant-ticket wagers were €2.1 billion, compared to €1.7 billion in the same period last year. Lotto revenues were €92.7 million, compared to €98.9 million in the same period last year, while Instant Lotteries revenues were €72 million, compared to €60.2 million during the third quarter of 2007, an increase of 19.5%.

Other Information
In November 2008, Lottomatica entered into a €350 million new five-year senior unsecured term loan facility agreement arranged by Barclays Capital, Intesa San Paolo, Mediobanca, and Unicredit. Natixis joined the above arrangers as an additional lender. Lottomatica will use the proceeds of the facility and existing cash to reimburse the €360 million bonds due on 22 December 2008.

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 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.

Lottomatica Group Consolidated Income Statement nine months ended September 30, 2008 and 2007

Lottomatica Group Consolidated Income Statement three months ended September 30, 2008 and 2007

Lottomatica Group Consolidated Balance Sheet as of September 30, 2008 and December 31, 2007

Lottomatica Group Consolidated Cash Flow Statement for the periods ended September 30, 2008 and September 30, 2007