S&P Affirms Scientific Games Rating

19 Nov 2003

NEW YORK – (Press Release) -- Standard & Poor's Ratings Services today assigned its preliminary 'B+'/'B'/'B-' ratings to lottery and pari-mutuel operator Scientific Games Corp.'s $500 million mixed shelf registration. Proceeds from the potential sale of senior unsecured or subordinated debt securities, preferred stock and/or common stock may be used for working capital, capital expenditures, and other general corporate purposes.

At the same time, Standard & Poor's affirmed its existing ratings, including, its 'BB-' corporate credit rating, on the New York, N.Y.-headquartered company. The outlook is stable. Pro forma for the company's recent refinancing and the approximately $143 million purchase of IGT On-Line Entertainment Systems, Inc. (OES), total debt outstanding at Sept. 30, 2003, would have been approximately $535 million.

"The ratings on Scientific Games reflect the competitive market conditions in the lottery and pari-mutuel industries, the mature nature and capital intensity of the lottery industry, the cash flow concentration from its lottery segment, the existence of a much larger and well-established competitor in the on-line lottery segment, GTECH Holdings Corp., and the company's relatively aggressive growth strategy," said Standard & Poor's credit analyst Michael Scerbo. "These factors are tempered by the company's leadership position in the pari-mutuel gaming and instant-ticket lottery industries, long-term customer contracts, a diversified customer base, and good credit measures for the rating."

Scientific Games' established position in the pari-mutuel and instant ticket lottery segments is expected to continue to provide a reliable source of cash flow over the intermediate term.

While Standard & Poor's expects the company will maintain a good financial profile for the rating, providing some cushion to pursue new lottery contracts and to seek out other strategic growth opportunities, the company's enhanced presence in the on-line lottery segment will be accompanied by the potential for significantly increased greater capital spending.

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	S&P Affirms Scientific Games Rating 19 Nov 2003 NEW YORK – (Press Release) -- Standard & Poor's Ratings Services today assigned its preliminary 'B+'/'B'/'B-' ratings to lottery and pari-mutuel operator Scientific Games Corp.'s $500 million mixed shelf registration. Proceeds from the potential sale of senior unsecured or subordinated debt securities, preferred stock and/or common stock may be used for working capital, capital expenditures, and other general corporate purposes. At the same time, Standard & Poor's affirmed its existing ratings, including, its 'BB-' corporate credit rating, on the New York, N.Y.-headquartered company. The outlook is stable. Pro forma for the company's recent refinancing and the approximately $143 million purchase of IGT On-Line Entertainment Systems, Inc. (OES), total debt outstanding at Sept. 30, 2003, would have been approximately $535 million. "The ratings on Scientific Games reflect the competitive market conditions in the lottery and pari-mutuel industries, the mature nature and capital intensity of the lottery industry, the cash flow concentration from its lottery segment, the existence of a much larger and well-established competitor in the on-line lottery segment, GTECH Holdings Corp., and the company's relatively aggressive growth strategy," said Standard & Poor's credit analyst Michael Scerbo. "These factors are tempered by the company's leadership position in the pari-mutuel gaming and instant-ticket lottery industries, long-term customer contracts, a diversified customer base, and good credit measures for the rating." Scientific Games' established position in the pari-mutuel and instant ticket lottery segments is expected to continue to provide a reliable source of cash flow over the intermediate term. While Standard & Poor's expects the company will maintain a good financial profile for the rating, providing some cushion to pursue new lottery contracts and to seek out other strategic growth opportunities, the company's enhanced presence in the on-line lottery segment will be accompanied by the potential for significantly increased greater capital spending.