Scientific Games to Purchase Global Draw

NEW YORK – (PRESS RELEASE) -- Scientific Games Corporation (Nasdaq: SGMS) announced today that it has signed a letter of intent to purchase The Global Draw, Ltd. and certain related companies. In the United Kingdom, Global Draw is a leading supplier of fixed odds betting terminals and systems, and interactive sports betting systems. Global Draw is beginning to extend its central determination, fixed odds system to meet the needs of European video lottery markets.

The nonbinding letter of intent specifies an upfront purchase price of approximately $183 million, plus an earn-out which will be paid to the selling shareholder and existing management team depending on the future financial performance of the business. The acquisition is expected to close within the first quarter of 2006. In fiscal 2004, the most recent period for which audited financial statements are available, Global Draw's U.K. gaming and betting machine operations reported revenues of #32 million. Scientific Games expects to finance the acquisition through a combination of borrowings under its existing revolving credit facility and new debt.

Steve Frater, Managing Director of The Global Draw, said "We are very excited about the prospect of working with Scientific Games to develop the European VLT business, and to even further develop our position in the U.K. betting and gaming market. Scientific Games can provide us technologies, relationships and expertise that will be invaluable in continuing to grow the existing business, and which will help us use our technology to enter new markets. Scientific Games have shown great confidence in the management team and its strategy. Our economic interest, via the earn-out, gives the team a strong incentive to remain committed to the success of the business for the long term. This should give our existing customers the confidence that our strong relationships will continue to be managed as usual but with the backing and resources of a world class provider of gaming and lottery products."

Walter Grubmuller, selling shareholder, said "I am very impressed with the capabilities and culture of Scientific Games. I believe that this marriage will vastly enhance our ability to be a leading player in the evolving European markets. I look forward to being a partner with Scientific Games."

Lorne Weil, Chairman and CEO of Scientific Games, said "Walter, Steve and their team have done a remarkable job of building a leading U.K. and continental European gaming business. Global Draw will give us a platform for accelerating our participation in sports betting and video lottery businesses globally. I greatly look forward to working with Steve and his team, along with our existing team, to execute this growth strategy." The potential transaction is subject to the execution of a binding definitive agreement, and other conditions.