LOTTOMATICA GROUP ANNOUNCES RESULTS FOR THE SECOND-QUARTER AND SIX-MONTH PERIOD ENDED JUNE 30, 2010

Consolidated Financial and Business Highlights

• Solid Q2 performance provides momentum
  - Revenues and EBITDA up 11% and 5%, respectively, versus the same period last year
  - Revenue growth across all business segments
  - 40% growth in EPS, versus 2Q 2009
• Benefiting from disciplined cost-management initiatives

Lottomatica Group Second-Quarter and First-Half Results Comparison

EBITDA represents operating income plus depreciation, amortization, impairment, 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.

ROME (ITALY) – PROVIDENCE, RHODE ISLAND (US), July 29, 2010 – Lottomatica Group S.p.A. Board of Directors, chaired by Mr. Lorenzo Pellicioli, today reviewed both the second-quarter and six-month results, and approved the consolidated financial statements for the first six months of 2010, which ended June 30, 2010.

Marco Sala, CEO of Lottomatica Group, said, “Lottomatica Group had a solid second quarter. We experienced revenue growth across all our business segments and enjoyed commercial successes that position us well for the full year and beyond.”

“With revenues and EBITDA up 11% and 5%, respectively, compared to the prior year, the encouraging results of the second quarter give us confidence that we can achieve the key performance metrics of the guidance we provided,” said Stefano Bortoli, CFO of Lottomatica Group. “We also remain committed to maintaining our investment grade credit rating.”

For the second quarter ended June 30, 2010, Revenues totaled €574.5 million, compared to €516.4 million in the second quarter of 2009, up 11.3%.

EBITDA EBITDA was €200.0 million in the second quarter of 2010, up 4.7% compared to €191.0 million in the same period last year. The increase in EBITDA was primarily driven by higher revenues and profits from Sports Betting and Machine Gaming in Italy, the impact of cost reduction initiatives taken in the fourth quarter of 2009 and this year, as well as the weakening of the Euro against the U.S. dollar. These improvements were partially offset by Lotto performance in Italy.

Operating Incomewas €110.4 million in the second quarter of 2010, compared to €106.1 million in the same period last year, up 4%.

Net income, attributable to the parent, was €34.9 million for the quarter ended June 30, 2010, compared to €22.1 million in the second quarter of 2009. In the second quarter of 2010, the Group recorded €15.5 million of foreign exchange gains compared to €12.0 million of foreign exchange losses in the second quarter of 2009.

Diluted Earnings-Per-Share were €0.21, up from €0.15 in the second quarter of 2009.

Net Cash Flows from Operating Activities generated €262.4 million in the second quarter of 2010, compared to €194.7 million in the second quarter of 2009, up 34.8%.

During the quarter, Investing Activities totaled €622.0 million, compared to €81.8 million in the same period last year. The increase was primarily driven by investments for the new Scratch & Win license in Italy.

At June 30, 2010, Consolidated Shareholders’ Equity totaled €2.4 billion. Lottomatica Group had a Net Financial Position (NFP) of €2.96 billion, compared to €2.42 billion as of December 31, 2009. A portion of Lottomatica Group’s debt is U.S. dollar denominated, and therefore exposed to translation adjustments. At the December 31, 2009 Euro/U.S. dollar exchange rate, NFP would have been approximately €200 million lower.

Revenues by Segment

Italian Operations

Total revenues from Italian operations grew 5.3% to €290.7 million, from €276.0 million in the second quarter of 2009. Instant-ticket wagers were approximately €2.3 billion in the second quarter of 2010, comparable to the same period last year. To further drive sales, Lottomatica introduced two new €3 tickets in the quarter as well as a €5 ticket in July, with three new games planned for the remainder of 2010. Approximately 616 million Scratch & Win tickets were sold in the three-month period, with an average price point of €3.8.

Lotto wagers decreased to €1.2 billion, from €1.4 billion in the second quarter of last year.

Wagers from sports betting in Italy, including pool games, increased 3.8% to €251.3 million in the second quarter of 2010, from €242.2 million in the second quarter last year. As of June 30, 2010, more than 1,200 fixed odds sports-betting and approximately 500 sports pool point-of-sale locations were operational.

Lottomatica continues to maintain a strong presence in the Italian market through the direct management of gaming machines. Amusement With Prize (AWP) machine wagers were €1.1 billion in the second quarter of 2010, up 10.0% over the second quarter of 2009. Lottomatica is the second largest operator in the Italian AWP market, in terms of the number of connected machines. On July 16, Lottomatica Videolot Rete and SPIELO Manufacturing together installed the first video lottery terminals (VLTs) in the new Italian Comma 6B VLT market.

Wagers from the Interactive segment totaled €102.9 million, up 19% versus the second quarter of 2009.

GTECH Lottery

Total GTECH lottery revenues for the second quarter of 2010 grew 20.5% over the same period last year to €229.8 million. Service revenue grew 12.2% to €202.2 million, when compared to the second quarter of 2009. Product sale revenues grew to €27.7 million from €10.7 million last year. On a constant currency basis, GTECH’s revenues were up 9.9%.

During the second quarter of 2010, GTECH signed a seven-year integrated services contract with the Kentucky Lottery, as well as a five-year contract extension with the California Lottery. The Connecticut Lottery signed an agreement with GTECH for the provision of self-service lottery product vending machines. Also during the second quarter, GTECH successfully launched new instant products and a daily online keno game for a complementary retailer network rollout for Organizacion Nacional de Ciegos de Espana (ONCE), at more than 5,800 locations throughout Spain. The number of locations in this network is expected to more than double over the next 18 months. After the close of the quarter, GTECH signed a seven-year integrated services contract with Totalizator Sportowy in Poland. GTECH Printing Corporation received additional printing business from lotteries in Texas, Kentucky, Connecticut, and Rhode Island.

During the second quarter of 2010, GTECH continued to work with the Mega Millions and Powerball consortiums to implement cross-selling of each consortium’s games. Early results are positive and are expected to drive growth for GTECH’s customers in the U.S. market in 2011 and beyond. Additionally, with the removal of prize payout restrictions in California, the California Lottery will be able to generate incremental revenue growth going forward.

Gaming Solutions

Second-quarter revenues in the Gaming Solutions segment, when compared to the same period last year, were up 9.3% to €36.4 million.

In the second quarter of 2010, Gaming Solutions signed a contract to install and maintain a new central system in Argentina as well as electronic gaming machines. Following the successful launch of the first VLT network in Italy, SPIELO will continue to work with two of the top three gaming machine concessionaires in Italy – Videolot Rete and Gamenet – to provide end-to-end VLT solutions in additional locations throughout the country.

GTECH G2

Second-quarter revenue contributions from GTECH G2 were €18.4 million, up 7.4% over the same period last year.

GTECH G2 is working closely with WLA customers to develop and execute interactive platforms in several jurisdictions across the globe. In Canada, Loto-Quebec will utilize GTECH G2’s online poker platform which will be shared by the British Columbia Lottery Corporation and the Atlantic Lottery Corporation.

Additional Information: First-Half Results Revenue Comparison

Revenues by Segment

For the first six months ended June 30, 2010, Revenues totaled €1.119 billion, compared to €1.099 billion in the first half of 2009, up 1.9%.

EBITDA was €397.3 million in the first half of 2010, compared to €430.6 million in the same period last year. The decrease in EBITDA was mainly driven by Lotto performance in Italy, the impact of contract portfolio changes in the U.S., and prize payouts for Sports Betting in Italy. These reductions were partially offset by higher revenues and profits from Machine Gaming in Italy, the impact of cost reduction initiatives taken in the fourth quarter of 2009 and this year, as well as the weakening of the Euro against the U.S. dollar.

Operating Income was €228.5 million in the first six months of 2010, compared to €261.3 million in the same period last year. Net income, attributable to the parent, was €64.3 million for the six months ended June 30, 2010, compared to €94.0 million in the first half of 2009.

Diluted Earnings-Per-Share were €0.38, compared to €0.63 in the first half of last year.

Net Cash Flows from Operating Activities generated €405.7 million in the first half of 2010, compared to €342.7 million in the first half of 2009.

Total revenues from Italian operations were approximately €591.9 million in the first six months of 2010, compared to €595.3 million in the first six months of 2009. Lottery revenues from Italian operations totaled €327.2 million, compared to €360.9 million in the same period last year. Instant-ticket wagers were approximately €4.83 billion in the first half of 2010, compared to €4.96 billion in the same period last year, while Lotto wagers for the first half were €2.4 billion, compared to €2.9 billion last year. Lotto wagers were affected by a lower incidence of late numbers in the first six months of 2010.

Wagers from sports betting in Italy increased 12.2% to €560.0 million in the first six months of 2010, from €499.2 million in the same period last year. Gaming machine wagers also grew from €2.1 billion to €2.2 billion, up 7.9% versus the same period in 2009.

Wagers from the Interactive segment totaled €205.6 million, up 27.0% versus the first half of 2009.

Total GTECH lottery revenues for the first six months of 2010 grew 4.2% over the same period last year to €422.6 million. Service revenue grew 5.0% to €389.7 million, when compared to the first half of 2009. Product sale revenues totaled €32.9 million for the first six months of 2010.

First-half revenues for Gaming Solutions were €69.7 million, up 7.6% versus the same period last year.

First-half revenue contributions from GTECH G2 were approximately €36.7 million, up 6.5% versus the prior year.

Other Business Developments:

Lottomatica Group’s Board of Directors implemented the 2010 – 2016 Stock Option Plan and the 2010 – 2014 Share Allocation Plan, both approved by the Ordinary Shareholders’ Meeting on April 30, 2010. The Board approved the Regulations of the Plans, assigned Options and Shares, resolved – in accordance with the authorization granted by the Extraordinary Shareholders’ Meeting on October 18, 2006 – to increase stock capital up to a nominal amount of €1,825,026.00 for use in connection with the Stock Option Plan, and determined the exercise price of the Options granted at €10.89.

The documentation required by the relevant provisions in connection with the above resolutions may be found on the Group’s website at www.lottomaticagroup.com (section: Governance – Documents and Reports – Ongoing Stock-Based Compensation Plans).

Declaration

The manager responsible for preparing Lottomatica Group’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 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.

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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: