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GTECH, Washington Lottery Receives Award

17 Dec 2004

WEST GREENWICH, Rhode Island – (PRESS RELEASE) -- GTECH Holdings Corporation (NYSE: GTK) was recognized for its work with Washington's Lottery (the Lottery) and Safeway at the Governor's Awards for Quality and Performance on November 29 at St. Martin's Worthington Center in Lacey, Washington. Washington state Gov. Gary Locke presented GTECH, the Lottery, and Safeway with the "Governor's Award for Internal Process Management" for the team's 'Connectivity' project. Connectivity is the process that connects Instant Ticket Vending Machines (ITVMs) to in-store online lottery terminals. It is a proprietary solution developed exclusively by GTECH and is being used with the Lottery and Safeway.

The Connectivity project was a three-year process stemming from a need to keep Washington's 900 ITVMs stocked with Scratch tickets. In fiscal year 2004, the Lottery printed and distributed 120,700,000 Scratch tickets. Approximately 32 percent of those are sold through ITVMs, representing close to $89 million of the Lottery's total sales. When bins are empty, customers cannot buy tickets and sales are lost.

Connectivity provides a real-time connection between the stand-alone ITVMs and the online terminals, giving retailers instantaneous updates on the status of scratch ticket bins so clerks can fill the bins right away.

The Lottery expects a gross sales increase of $4 million, with an expected $800 thousand yearly in additional funding for education as a direct result of Connectivity.

"This is quite an honor for GTECH, the Lottery, and Safeway," said GTECH Executive Vice President and Chief Operating Officer David J. Calabro. "GTECH is always proud to offer new technology that will significantly improve sales for Washington's Lottery and other jurisdictions around the world. Connectivity is now a best practice that increases customer satisfaction, retailer income, and Lottery funding for education."

The process for consideration for the Governor's Awards for Quality and Performance is arduous. Locke only recognizes teams and agencies whose projects create significant, measurable, and sustainable improvements. Teams must be nominated by their agency director, and a Panel of Internal Performance Consultants review their applications. Those who meet the stringent criteria move to the finalist stage. Finalists then present the project to a panel of judges drawn from business, industry, labor, management and the legislature.

The Lottery's Connectivity Project was one of only nine presentations to make it through the panel of screeners for award consideration. The panel of judges makes the final decision about the category in which each project will be recognized. The Lottery, GTECH, and Safeway successfully devised a solution that transforms the ITVMs from basic vending machines into communication devices. Most importantly, the team executed a two-phase pilot project proving Connectivity viable and financially beneficial for the Lottery to implement. As a result, the technology is now an industry best practice that is being written into Request for Proposals (RFPs) across the country.

In Washington, Connectivity was recently implemented with the installation of the Lottery's new Expandable Dispensing System (EDS-Q) ITVMs. GTECH won the contract to provide Washington's Lottery with ITVMs and ongoing maintenance and support services in March. In addition to the ITVMs, GTECH will also install approximately 50 GamePoint(TM) terminals, the Company's new all-in-one, self-service instant and online lottery solution, in Washington by summer 2005. GTECH has been the online and instant ticket lottery system provider for Washington's Lottery since 1996.

In addition, GTECH has been providing ITVM products and services to Washington's Lottery since 1998 through its acquisition of Interlott Technologies. GTECH, a leading global information technology company with over $1 billion in revenues and more than 5,400 people in over 50 countries, provides software, networks, and professional services that power high-performance, transaction processing solutions.

The Company's core market is the lottery industry, with a growing presence in commercial gaming technology and financial services transaction processing. For more information about the Company, please visit GTECH's website at

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