PRESS RELEASE

LOTTOMATICA GROUP ANNOUNCED THAT GTECH INDIANA, LLC HAS SIGNED A 15-YEAR INTEGRATED SERVICES AGREEMENT WITH THE INDIANA (HOOSIER) LOTTERY
ROME, ITALY and PROVIDENCE, RHODE ISLAND (US) - October 13, 2012 - Lottomatica Group announced that its wholly-owned subsidiary, GTECH Indiana, LLC (GTECH), has signed the 15-year Integrated Services Agreement (ISA) with the Indiana (Hoosier) Lottery on October 12, 2012. The ISA term will run through June 30, 2028, with transition services commencing immediately, and commencement of full services expected to begin on July 1, 2013.
Under the ISA, which is subject to the Hoosier Lottery's control over all significant business decisions, GTECH will manage the day-to-day operations of the Hoosier Lottery and its core functions, including lottery game development; retailer recruitment and training; call center operations; supply of goods and services; subcontractor and vendor selection and management; instant-ticket management and distribution; and marketing and advertising. Responsible gaming programs will be embedded throughout these operational processes and core functions.
"The goal of this process was to create a positive working relationship with a provider that could substantially improve the performance of the Hoosier Lottery, and the post-selection negotiation spoke volumes about GTECH's commitment to our goal," said Hoosier Lottery Executive Director Karl Browning. "Our selection team was clearly impressed by GTECH's business plan, as was the Commission, and the credibility of that plan paved the way for a smooth negotiation over the past several days."
"By leveraging the operational expertise, innovative technology solutions, and local market insights of GTECH and Lottomatica, we were able to make a very compelling proposal to the Hoosier Lottery to enter into this ISA," said Lottomatica Group CEO Marco Sala.
"GTECH has developed a comprehensive business plan to generate approximately $500 million of additional net income for the State of Indiana over the first five years of the base services agreement commencing July 1,
2013," said GTECH President and CEO Jaymin B. Patel. "We are committed to making the Hoosier Lottery one of the top 10 U.S. lotteries in
terms of sales and net profit per capita, as well as a World Lottery Association certified leader in responsible gaming programs and practices. More importantly, this sustainable net income growth will become a reliable source of funding for good causes supported by the Hoosier Lottery."
Senior leadership for the GTECH Indiana team has been identified and is ready to begin the transition to the new Integrated Services model immediately. The team will be led by Connie Laverty O'Connor, a 32-year lottery veteran who recently served as the CEO of Northstar Lottery Group in Illinois, and has held senior leadership positions at the New York and Georgia lotteries.
"Our experience in managing a U.S. lottery's transition from a State- executed model to an integrated-services model will be brought to bear in Indiana, particularly as we begin the ramp-up phase," stated GTECH Indiana CEO Connie Laverty O'Connor. "Working hand-in-hand with the Hoosier Lottery, we will build a world-class team aligned around a common goal - a commitment to delivering incremental revenues to the residents of Indiana."
Commencing with the fiscal year starting July 1, 2013, to the extent that the actual net income earned by the State each year exceeds the net income guaranteed by GTECH (bid net income), GTECH will earn incentive compensation for each dollar in excess of bid net income, up to an annual maximum of five percent of the actual net income earned by the State in such contract year.
In the event actual net income is less than bid net income in a contract year, GTECH will be required to pay the State for such shortfall, provided that the net income shortfall payment may not exceed five percent of bid net income in such contract year.
GTECH will also be reimbursed for certain costs in connection with the procurement, including, but not limited to, those related to managing the Hoosier Lottery such as its personnel costs and other overhead expenses, as well as be reimbursed for lottery expenses incurred by GTECH in connection with fees paid to subcontractors for the provision of goods and services.
Related press releases: October 4, 2012
Lottomatica Group is a market leader in the Italian gaming industry and one of the largest Lottery operators in the world based on total wagers and, through its subsidiary GTECH Corporation, is a leading provider of lottery and gaming technology solutions worldwide. Together, the companies are the only vertically integrated full service lottery group. Lottomatica Group is majority owned by De Agostini, which belongs to a century-old publishing and media services group. Lottomatica is listed on the Stock Exchange of
Milan under the trading symbol "LTO." In 2011, Lottomatica Group had €3.0 billion in revenues and 8,000 employees in over 60 countries.
For further information:

Robert K. Vincent Simone Cantagallo Lottomatica Group S.p.A. Lottomatica Group S.p.A. Corporate Communications Media Communications

T. (+1) 401 392 7452 T. (+39) 06 51899030

This press release and previous ones are available on Lottomatica and GTECH web sites:

www.lottomaticagroup.com- www.gtech.com

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