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GTECH Signs 10-Year Online, Instant, and Passive Lottery Contract in Sri Lanka Company to Deploy Enterprise Series Open Architecture, Altura(R) Terminals, and IP-Based Communications Network WEST GREENWICH, R.I., Dec. 12 /PRNewswire-FirstCall/ -- GTECH Holdings Corporation today announced that its wholly-owned subsidiary, GTECH Lanka, signed a 10-year integrated services contract with the Mahapola Higher Education Scholarship Trust Fund (MTF) to be the provider of online, instant, and passive lottery technology and management services in Sri Lanka. The MTF is the preeminent higher education scholarship trust fund in Sri Lanka. The contract includes a five-year extension option and follows a competitive procurement process that involved eight other bidders. GTECH anticipates launching the new system in mid-2004. With respect to its contract with MTF, GTECH anticipates generating revenues in excess of $100 million over the life of the contract. "This is yet another example of GTECH's Enterprise Series solution being embraced by a broad spectrum of countries around the globe," said GTECH President and CEO W. Bruce Turner. "We look forward to putting our experience and commitment to this new business relationship by providing MTF with a very secure and robust open architecture platform, end-to-end use of open architecture standards and applications, and a wide range of world-class management services encompassing a large number of new gaming and retail solutions." The Honorable Ravi Karunanayake, Minister of Commerce and Consumer Affairs which oversees MTF, said, "Diversifying into lottery is not a new concept to MTF as our educational scholarships were implemented with support of an offline lottery in 1980. However, the online aspect of the lottery business is unique to Sri Lanka and will serve to strengthen MTF's ability to contribute significantly to the educational needs of Sri Lanka's youth." Under the terms of the agreement, GTECH will deploy the Company's Enterprise Series architecture, featuring IP web-component technology. In addition, GTECH initially will install approximately 1,000 Altura(R) terminals on an island-wide IP-based communications network. The Altura offers high- performance PC architecture and advanced software capabilities that facilitate the rapid introduction of new games and future lottery applications. The number of terminals is expected to grow over time. GTECH will base its operations in Sri Lanka's capital of Colombo and will provide turnkey lottery management services to MTF including the installation, operation, and maintenance of the online and instant central system; installation and maintenance of the lottery terminals; field services; marketing support; hotline operations; and retailer selection and training. In support of this agreement, GTECH expects to enter into a long-term joint venture with a prominent and highly-respected Sri Lankan conglomerate, Aitken Spence & Co. Ltd. (ASC). Together, GTECH and ASC will provide integrated services for MTF and pursue a range of transaction processing and infrastructure management opportunities in Sri Lanka. "We are delighted to have this opportunity to work with GTECH in this exciting and extremely important endeavor," said ASC Deputy Chairman and Managing Director, J.M.S. Brito. "Mahapola offers hope to many thousands of students, and I am delighted that ASC shall play an important part in this significant initiative in Sri Lanka." Proceeds from the lottery will be used to support educational scholarships in Sri Lanka. Certain statements contained in this press release are forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements include, without limitation, statements relating to the prospects and financial outlook for the Company, which reflect management assumptions regarding: (i) the future prospects for and stability of the lottery industry and other businesses in which the Company is engaged or expects to be engaged, (ii) the future operating and financial performance of the Company (including, without limitation, expected future growth in revenues, profit margins and earnings per share), and (iii) the ability of the Company to retain existing business and to obtain and retain new business. Such forward looking statements reflect management's assessment based on information currently available, but are not guarantees and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in the forward looking statements. These risks and uncertainties include, but are not limited to, those set forth above, in the Company's subsequent press releases and on reports by the Company on Forms 10-K, 10-Q and 8-K, and other reports and filings with the Securities and Exchange Commission, as well as risks and uncertainties respecting: (i) the potential impact of extensive and evolving government regulations upon the Company's business; (ii) the possibility of slower than expected growth or declines in sales of lottery goods and services by the Company or the Company's customers; (iii) exposure to foreign currency fluctuations; (iv) risks and uncertainties inherent in doing business in foreign jurisdictions; (v) the possibility of significant fluctuation of quarterly operating results; (vi) the intensity of competition in the lottery industry; (vii) the possibility of substantial penalties under and/or termination of the Company's contracts; (viii) the ability of the Company to respond to technological change and to satisfy the future technological demands of its customers; (ix) opposition to expansion of lottery and gaming; and (x) the Company's ability to attract and retain key employees. GTECH, a leading global information technology company with $1 billion in revenues and 4,900 people in 43 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 financial services transaction processing. For more information about the Company, please visit GTECH's website at http://www.gtech.com/. Contact: Robert K. Vincent Public Affairs GTECH Corporation 401-392-7452 DATASOURCE: GTECH Holdings Corporation CONTACT: Robert K. Vincent, Public Affairs of GTECH Corporation, +1-401-392-7452 Web site: http://www.gtech.com/

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