GTECH Signs New Multi-Year Contract to Provide Club Keno Game to Customer In Beijing

As a result of the new multi-year contract, which is expected to commence on April 1, 2004, BWLC also extended GTECHs original online lottery services contract for an additional three years through December 31, 2012. Under the terms of the new contract, GTECH will provide a turnkey system to BWLC, including keno equipment, monitors, and game software for the Club Keno game. The Company will also install an additional 500 Altura terminals featuring GTECHs AlturaVision, a video display system that allows the development, delivery, and display of text, graphics, animations, and other multimedia objects on a display device (such as a television or LCD monitor) located in a retail establishment. BWLC expects to introduce Club Keno in age-controlled locations throughout Beijing in August 2004. The number of Altura terminals for BWLCs Club Keno game is expected to grow to 2,000 over time. In addition, GTECH will provide BWLC with the Companys IP-based ES Connect software. ES Connect is a highly-secure, high-volume, open standards network interface that connects a lotterys transaction processing engine to a multitude of sales channels and devices. It can be implemented on an existing lottery system without the need for a major system conversion. GTECH will provide ongoing services to BWLC including upgrades and maintenance for the keno and lottery central systems; software support; game design; marketing consultation; and terminal spare parts. An alliance arrangement has also been agreed upon whereby BWLC can become the hub operator for neighboring jurisdictions in China. Under this arrangement, GTECH will provide BWLC with the lottery central system hardware, network connectivity, software licenses, and ongoing software support. GTECH will be entitled to receive fixed pricing for the sale of the Altura terminals and a percentage of sales as an ongoing software license and support services fee. GTECH has provided lottery products and services to BWLC since its inception in 2000. Since that time, BWLCs sales have grown year-over-year reaching $120 million in 2003. Proceeds generated by the BWLC support various welfare funds, with an emphasis on orphanages and elderly care.