GTECH Magnetec Corporation (TransAct Technologies)

GTECH and Magnetec Sign New Five-year Exclusive Supply Agreement for Lottery Terminal Printers
GTECH and Magnetec Announce Dismissal of Magnetec Lawsuit

(West Greenwich, RI — July 15, 1999)

GTECH Holdings Corporation (NYSE: GTK) and TransAct Technologies (NASDAQ: TACT) today announced that TransAct Technologies’ wholly owned subsidiary, Magnetec Corporation, and GTECH Holdings Corporation’s wholly owned subsidiary, GTECH Corporation, have signed a new five-year agreement under which Magnetec will be the exclusive manufacturer and supplier to GTECH Corporation of a 27-wire impact printer for use in GTECH’s Isys™ online lottery terminal.

As part of the agreement, GTECH agreed to pay Magnetec $1 million for Magnetec’s past design efforts, development costs and manufacturing interruption costs. Magnetec agreed not to supply this printer to any GTECH competitor, and at the end of the five-year agreement, GTECH will have the right to use the printer design. In addition, GTECH agreed to place a non-cancelable order for delivery of approximately $8 million of printers in the year 2000.

As previously announced, Magnetec had commenced a lawsuit against GTECH Corporation, and the companies announced that they have agreed to have all claims finally dismissed.

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GTECH Corporation is the world’s leading supplier of computerized online lottery products and services. Currently, GTECH has contracts to supply and/or operate lottery systems for 29 U.S. customers and 52 customers outside of the United States. For more information about the Company, please visit GTECH’s Website at http://www.gtech.com.

TransAct designs, develops, manufactures and markets transaction-based printers and related products under the ITHACA® and MAGNETEC® brand names. The Company’s printers are used to provide transaction record such as receipts, tickets, coupons, register journals and other documents. TransAct serves four vertical markets: point of sale, gaming and lottery, kiosk and financial services. The Company sells its products directly to end users, original equipment manufacturers, value-added reseller and selected distributors. Please visit TransAct’s website, located at http://www.transact-tech.com, to receive more information about the Company’s products and selected financial data.