S&P Revises IGT Outlook

28 Apr 2004

NEW YORK – (PRESS RELEASE) -- Standard & Poor's Ratings Services today revised its outlook on International Game Technology (NYSE:IGT) to positive from stable.

At the same time, Standard & Poor's affirmed its 'BBB' corporate credit rating and other ratings on the company. Reno, Nev.-based IGT is a manufacturer and distributor of slot machines and proprietary gaming systems. Total debt outstanding at March 31, 2004 was $1.2 billion.

"The outlook revision follows IGT's solid operating results during the six months ended March 31, 2004, resulting in improved credit measures with the expectation that this trend will continue in the near term," said Standard & Poor's credit analyst Peggy Hwan. "Also, with positive industry fundamentals expected to continue over the intermediate term, the company is expected to generate discretionary cash flow, providing a cushion within the rating to complete modest share repurchases and/or dividends and to accomplish its growth objectives."

The company continued to perform well during the first six months of fiscal 2004 due to internal growth. For the six months ended March 31, 2004, revenues and EBITDA increased 22% and 28% year over year, respectively. New casino openings, increasing replacement demand for IGT's EZ Pay technology by casino operators, and the successful introduction of new products contributed to the company's positive earnings results. As new gaming markets open up, Standard & Poor's expects IGT's brand recognition and position as the industry's number-one supplier will lead new casino operators to select it as a primary gaming-machine provider. With its existing client base continuing to trend toward the use of Ticket-In-Ticket-Out (TITO) technology, the company will continue to see strong replacement sales. By the end of fiscal 2004, the company estimates the size of the domestic replacement market for TITO to be in the 200,000-250,000 units range. Furthermore, as machines become obsolete through new product introductions, IGT is expected to maintain its leadership position in the market with the depth of its new product pipeline and patents, and with continuous investment in R&D.

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	S&P Revises IGT Outlook 28 Apr 2004 <a href='https://ad.casinocity.com/adclick.php?n=a21efcd1'><img src='https://ad.casinocity.com/adview.php?what=-site:vendors/width:250/RON&n=a21efcd1' border='0' alt='' /></a> NEW YORK – (PRESS RELEASE) -- Standard & Poor's Ratings Services today revised its outlook on International Game Technology (NYSE:IGT) to positive from stable. At the same time, Standard & Poor's affirmed its 'BBB' corporate credit rating and other ratings on the company. Reno, Nev.-based IGT is a manufacturer and distributor of slot machines and proprietary gaming systems. Total debt outstanding at March 31, 2004 was $1.2 billion. "The outlook revision follows IGT's solid operating results during the six months ended March 31, 2004, resulting in improved credit measures with the expectation that this trend will continue in the near term," said Standard & Poor's credit analyst Peggy Hwan. "Also, with positive industry fundamentals expected to continue over the intermediate term, the company is expected to generate discretionary cash flow, providing a cushion within the rating to complete modest share repurchases and/or dividends and to accomplish its growth objectives." The company continued to perform well during the first six months of fiscal 2004 due to internal growth. For the six months ended March 31, 2004, revenues and EBITDA increased 22% and 28% year over year, respectively. New casino openings, increasing replacement demand for IGT's EZ Pay technology by casino operators, and the successful introduction of new products contributed to the company's positive earnings results. As new gaming markets open up, Standard & Poor's expects IGT's brand recognition and position as the industry's number-one supplier will lead new casino operators to select it as a primary gaming-machine provider. With its existing client base continuing to trend toward the use of Ticket-In-Ticket-Out (TITO) technology, the company will continue to see strong replacement sales. By the end of fiscal 2004, the company estimates the size of the domestic replacement market for TITO to be in the 200,000-250,000 units range. Furthermore, as machines become obsolete through new product introductions, IGT is expected to maintain its leadership position in the market with the depth of its new product pipeline and patents, and with continuous investment in R&D.