GTECH and Harrah's Enter into Strategic Alliance WEST GREENWICH, R.I. and LAS VEGAS, May 11 /PRNewswire-FirstCall/ -- GTECH Corporation, a wholly-owned subsidiary of GTECH Holdings Corporation (NYSE: GTK), and Harrah's Operating Company, Inc., a subsidiary of Harrah's Entertainment, Inc. (NYSE:HET), said today they have entered into a strategic relationship whereby GTECH will supply Harrah's properties with gaming machines, and the two companies will work together to develop new game content. Over the next two years, GTECH will place 200 leased video gaming machines in Harrah's properties around the country. The companies will also explore opportunities to expand the relationship with additional slot products in future years, depending upon the performance of the machines installed during the initial period. The companies will also cooperate on potential development projects in jurisdictions that could consider legalization of casino gaming, including Suffolk Downs in Massachusetts and Kentucky's Turfway Park, which is owned by GTECH, Harrah's, and Keeneland Corporation. In addition, GTECH will support the proposed Narragansett Indian casino in Rhode Island that would be operated by the State of Rhode Island in conjunction with the Narragansett Indian Tribe and Harrah's. GTECH President and CEO W. Bruce Turner said, "GTECH has committed to a growth plan that anticipates substantial contributions from our Gaming Solutions division. This agreement with Harrah's provides us with a tremendous platform to introduce our games and technology into the top casino markets in the world. Perhaps as valuable as the placement of these machines is the ability we will have through this relationship to develop new game content in cooperation with Harrah's slot management staff." Harrah's Chairman, CEO, and President Gary Loveman added, "The gaming- machine segment of the commercial casino industry will benefit from a successful entry by GTECH, whose commitment to growth is evidenced by its purchase of Spielo and planned acquisition of Atronic. We look forward to working with GTECH, and sincerely appreciate its support of our development efforts with the Narragansett Indian Tribe. GTECH is a successful Rhode Island business that has demonstrated its commitment to improving the economic climate of the state." Narragansett Chief Sachem Matthew Thomas commented that, "The Narragansetts and GTECH have had a relationship of mutual respect and admiration that began with the Company's support of our economic development activities in 1994. We're pleased that they have joined our efforts to bring financial prosperity and economic independence to our people. This is another example of the important role a world-class company like Harrah's can play in uniting respected and meaningful companies like GTECH with our efforts. It is also another endorsement of the substantial positive economic impact this project will have on all of Rhode Island." "The Narragansett Indian Tribe earned our respect during our support of their 1994 efforts to authorize a casino project in West Greenwich. We appreciate the struggles they've had to endure and the challenges they have had to overcome to make this project a reality," said Mr. Turner. "GTECH also has a long history with Harrah's through our joint ownership of Turfway Park. We enjoy strong managerial relationships to the extent that Gary Loveman will be the keynote speaker at GTECH's biennial customer event, the World Leaders Forum, being held next week in Washington, DC. We view this new relationship as a natural extension of our business dealings with Harrah's, and look forward to future opportunities for us to continue to expand our relationship. We are pleased to lend our support and participate in the effort to make the Narragansetts' project in West Warwick a reality." Mr. Turner added that the market can support the new project as well as existing facilities, and that the revenues the state derives from gaming activities will increase once the facility is opened. He also expressed confidence that Harrah's and the Narragansett Indians will be able to deliver on their commitment to create a world-class entertainment facility and one of the largest economic development projects in the history of the state. Over the next two years, GTECH expects to receive approximately $5.8 million in revenue for the placement of 200 machines. 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. The Company identifies forward looking statements by words such as "may," "will," "should," "could," "expect," "plan," "anticipate," "intend," "believe," "estimate," "continue," or similar words that refer to the future. 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 ability of the Company to continue to retain and extend its existing contracts and win new contracts; (iii) the possibility of slower than expected growth or declines in sales of lottery and gaming goods and services by the Company or the Company's customers; (iv) exposure to foreign currency fluctuations; (v) risks and uncertainties inherent in doing business in foreign jurisdictions; (vi) the relatively large percentage of the Company's revenues attributable to a relatively small number of the Company's customers; (vii) the possibility of significant fluctuation of quarterly operating results; (viii) the intensity of competition in the lottery and gaming industries; (ix) the possibility of substantial penalties under and/or termination of the Company's contracts; (x) the ability of the Company to respond to technological change and to satisfy the future technological demands of its customers; (xi) opposition to expansion of lottery and gaming; (xii) the Company's ability to attract and retain key employees; and (xiii) the possibility of adverse determinations in pending legal proceedings. GTECH, a leading global information technology company with over $1 billion in revenues and 5,300 people in over 50 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 commercial gaming technology and 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 Corporation CONTACT: Robert K. Vincent, Public Affairs of GTECH Corporation, +1-401- 392-7452 Web site: http://www.gtech.com/

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