Scientific Games Acquires IGT Subsidiary

7 Nov 2003

NEW YORK – (Press Release) -- Scientific Games Corporation (Nasdaq: SGMS) announced the completion of its acquisition of IGT OnLine Entertainment Systems, Inc., a subsidiary of International Game Technology (NYSE: IGT), for $143 million in cash subject to certain adjustments. The addition of IGT OnLine Entertainment increases Scientific Games' last twelve months' pro forma revenues for the Lottery Group through June 30, 2003 from $289.6 million to $437.5 million, expands the company's geographic presence and significantly broadens its lottery product offerings. The acquisition is immediately accretive to earnings.

As a result of the acquisition, Scientific Games will operate on-line lottery systems (lotto type games) in 15 states and throughout the Caribbean, in addition to supporting systems that IGT OnLine has delivered to customers in Korea, Norway, Switzerland and Shanghai. The acquisition also includes IGT OnLine's Advanced Gaming System (AGS) video system contracts in six jurisdictions throughout the world, certain intellectual property and an exclusive license to specific IGT slot brands for both instant and on-line games.

"The combination of these two companies will greatly strengthen our presence in the lottery industry and accelerate our entrance into the video lottery systems business," said Lorne Weil, chairman and CEO of Scientific Games.

"Lotteries throughout the country will benefit from significant productivity improvements, more efficient and effective field operations, and access to an impressive portfolio of advanced technologies and intellectual property," Weil said. "The latter, including several important patents and copyrights, should significantly increase the revenues of our customer base."

Bear, Stearns & Co. Inc. acted as sole M&A advisor for the acquisition and Lead Arranger for the related financing, with Deutsche Bank Securities, Inc. and Credit Suisse First Boston LLC acting as Co-Arrangers for the financing. The transaction was financed, in part, through an amended and restated credit facility which totals $537,825,000, including a $75 million revolving credit facility and a $462,825,000 term loan which matures on December 31, 2009. The amended and restated term loan will carry an interest rate of LIBOR plus 2.75%, down from the current level of LIBOR plus 3.50%.

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	Scientific Games Acquires IGT Subsidiary 7 Nov 2003 NEW YORK – (Press Release) -- Scientific Games Corporation (Nasdaq: SGMS) announced the completion of its acquisition of IGT OnLine Entertainment Systems, Inc., a subsidiary of International Game Technology (NYSE: IGT), for $143 million in cash subject to certain adjustments. The addition of IGT OnLine Entertainment increases Scientific Games' last twelve months' pro forma revenues for the Lottery Group through June 30, 2003 from $289.6 million to $437.5 million, expands the company's geographic presence and significantly broadens its lottery product offerings. The acquisition is immediately accretive to earnings. As a result of the acquisition, Scientific Games will operate on-line lottery systems (lotto type games) in 15 states and throughout the Caribbean, in addition to supporting systems that IGT OnLine has delivered to customers in Korea, Norway, Switzerland and Shanghai. The acquisition also includes IGT OnLine's Advanced Gaming System (AGS) video system contracts in six jurisdictions throughout the world, certain intellectual property and an exclusive license to specific IGT slot brands for both instant and on-line games. "The combination of these two companies will greatly strengthen our presence in the lottery industry and accelerate our entrance into the video lottery systems business," said Lorne Weil, chairman and CEO of Scientific Games. "Lotteries throughout the country will benefit from significant productivity improvements, more efficient and effective field operations, and access to an impressive portfolio of advanced technologies and intellectual property," Weil said. "The latter, including several important patents and copyrights, should significantly increase the revenues of our customer base." Bear, Stearns & Co. Inc. acted as sole M&A advisor for the acquisition and Lead Arranger for the related financing, with Deutsche Bank Securities, Inc. and Credit Suisse First Boston LLC acting as Co-Arrangers for the financing. The transaction was financed, in part, through an amended and restated credit facility which totals $537,825,000, including a $75 million revolving credit facility and a $462,825,000 term loan which matures on December 31, 2009. The amended and restated term loan will carry an interest rate of LIBOR plus 2.75%, down from the current level of LIBOR plus 3.50%.