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Camelot Group signs UK lottery contract

14 Sep 2007

PROVIDENCE, Rhode Island -- (PRESS RELEASE) -- Lottomatica S.p.A. announced that Camelot Group plc has signed an agreement with the United Kingdom's National Lottery Commission for the next license to operate the U.K. National Lottery. The new 10-year license, which was awarded to Camelot following a competitive procurement, is expected to commence on February 1, 2009. Lottomatica subsidiary, GTECH Corporation, is a major lottery technology and services supplier to the successful Camelot consortium, and will provide a wide array of the latest lottery technology, interactive systems, and products to Camelot over the duration of the license. With respect to its agreement with Camelot, GTECH expects to receive in excess of euro 600 million in revenue over the 10-year license period, commencing in the third quarter of 2008. Camelot has been the operator of the U.K. National Lottery since its inception in 1994.

"We are pleased that the U.K. National Lottery Commission has chosen Camelot for its third lottery license," said W. Bruce Turner, CEO of Lottomatica S.p.A. and GTECH. "We are also gratified that Camelot has chosen to procure a wide range of the latest technology in the lottery industry from GTECH.

"As one of the top-performing lotteries in the world, the National Lottery has set the standard for excellence, raising more than 20 billion pounds sterling for the Good Causes in the U.K. since it began selling lottery games in 1994," continued Mr. Turner. "We value the relationship we have established with Camelot and the National Lottery, and we look forward to continuing to support their Good Causes with our latest technology solutions and services, well into the next decade."

Under the terms of the new license, GTECH will supply Camelot with over 27,500 integrated IMAGINE(TM) lottery terminals, which will be used to replace existing machines and also to grow the terminal base through retailer expansion. Prior to the commencement of the third license, GTECH will also convert the current online gaming system and instant-ticket system to GTECH's Enterprise Series(TM) (ES) platform. In addition, GTECH will upgrade Camelot's existing interactive system with Enterprise Series Interactive (ESi), to provide a wider array of game offerings to players via channels such as the Internet, mobile, and Internet-Protocol television (IPTV).

Additionally, GTECH has licensed to Camelot its ES Multimedia technology, enabling Camelot to manage an approximate 27,500 media screen network, displaying various forms of promotional and informational content.

Over the duration of the 10-year license, GTECH will provide ongoing services to Camelot including software development, technology project management and support; network design support; field maintenance; and central repair services.

Members of the Camelot Group consortium which bid on the new license include De La Rue, Cadbury Schweppes, Royal Mail Enterprises, Thales Electronics, and Fujitsu. Camelot will continue to be responsible for all aspects of the lottery operations, excluding the allocation of proceeds to the Good Causes as designated by the agencies appointed by the U.K. Government.

With more than 26,300 lottery retail terminals and 4,911.4 million pounds sterling in total lottery sales for its most recent fiscal year, the U.K. National Lottery is considered one of the most successful and efficient lotteries in the world.

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