GTECH Israeli National Lottery

GTECH Selected to Provide On-Line Lottery Equipment And Services to the Israeli National Lottery

WEST GREENWICH, RI (October 2, 1998)

GTECH, (NYSE: GTK) today announced that is has been selected to provide on-line lottery equipment, software and services to Mifal Hapayis, the Israeli National Lottery. The selection follows a competitive procurement process.

Upon successful completion of contract negotiations, GTECH will replace the Israeli Lottery’s existing system and network with a fully integrated gaming system, which will offer a wide range of player-oriented functions including on-line and instant lottery games. The proposed product sale agreement is expected to include the installation of approximately 2,700 GTECH terminals. Mifal Hapayis will also have the option to purchase 2,300 additional GTECH terminals in the future.

“We are extremely pleased to have established a relationship with Mifal Hapayis,” said William Y. O’Connor, GTECH Chairman and CEO. “This partnership underscores the emphasis we have put on international development and we look forward to providing the Lottery with the latest tools to expand, refine and reinvigorate their on-line lottery systems.”

Mifal Hapayis, which has been in existence for more than 40 years, generates revenues of approximately US$800 million. Proceeds from the Lottery are used to fund municipal projects throughout Israel including after-school programs and community centers.

GTECH Corporation is the world’s leading supplier of computerized on-line lottery products and services. Currently, GTECH has contracts to supply and/or operate lottery systems for 29 U.S. customers and 49 customers outside of the United States. For more information about the Company, please visit GTECH’s web site at http://www.gtech.com.