CONSOLIDATED INCOME STATEMENTS
    GTECH HOLDINGS CORPORATION AND SUBSIDIARIES
                                                          (Unaudited)
                                                      Three Months Ended
                                                  November 25,   November 27,
                                                      2000           1999
                                                    (Dollars in thousands,
                                                   except per share amounts)
    Revenues:
      Services                                     $ 213,827       $221,093
      Sales of products                                7,204         28,473
                                                     221,031        249,566
    Costs and expenses:
      Costs of services                              145,338        141,487
      Costs of sales                                   7,272         18,014
                                                     152,610        159,501
    Gross profit                                      68,421         90,065
    Selling, general and administrative               24,575         31,538
    Research and development                          11,912         12,697
    Goodwill amortization                              1,473          1,563
      Operating expenses                              37,960         45,798
    Operating income                                  30,461         44,267
    Other income (expense):
      Interest income                                  1,343            902
      Equity in earnings of unconsolidated
       affiliates                                        520           (135)
      Other income                                     4,771          1,042
      Interest expense                                (7,116)        (7,468)
    Income before income taxes                        29,979         38,608
    Income taxes                                      11,692         15,829
    Net income                                       $18,287        $22,779
    Basic and diluted earnings per share                $.53           $.65
    Weighted average shares - Diluted                 34,493         35,080

    CONSOLIDATED INCOME STATEMENTS
    GTECH HOLDINGS CORPORATION AND SUBSIDIARIES
                                                          (Unaudited)
                                                      Nine Months Ended
                                                  November 25,   November 27,
                                                      2000           1999
                                                    (Dollars in thousands,
                                                   except per share amounts)
    Revenues:
      Services                                     $ 640,667       $642,094
      Sales of products                               49,970        101,521
                                                     690,637        743,615
    Costs and expenses:
      Costs of services                              430,723        419,751
      Costs of sales                                  52,698         70,505
                                                     483,421        490,256
    Gross profit                                     207,216        253,359
    Selling, general and administrative               89,373         91,756
    Research and development                          38,189         34,663
    Goodwill amortization                              4,691          4,689
      Operating expenses                             132,253        131,108
    Special charge                                    40,018             --
    Operating income                                  34,945        122,251
    Other income (expense):
      Interest income                                  4,312          2,603
      Equity in earnings of unconsolidated
       affiliates                                      2,614          1,801
      Other income                                     7,212          2,320
      Interest expense                               (20,804)       (21,402)
    Income before income taxes                        28,279        107,573
    Income taxes                                      11,029         44,105
    Net income                                       $17,250        $63,468
    Earnings per share before special and additional charges:
      Basic and diluted                                $1.29          $1.73
    Earnings per share after special and additional charges:
      Basic and diluted                                 $.50          $1.73
    Weighted average shares - Diluted                 34,739         36,735

    CONSOLIDATED BALANCE SHEETS
    GTECH HOLDINGS CORPORATION AND SUBSIDIARIES
                                                  (Unaudited)
                                                  November 25,   February 26,
    ASSETS                                            2000           2000
                                          (In thousands, except share amounts)
    CURRENT ASSETS
      Cash and cash equivalents                       $9,767        $11,115
      Trade accounts receivable                       91,118        115,358
      Sales-type lease receivables                     9,409         10,110
      Inventories                                     97,897         67,418
      Deferred income taxes                           15,853         15,853
      Other current assets                            17,892         19,346
        TOTAL CURRENT ASSETS                         241,936        239,200
    SYSTEMS, EQUIPMENT AND OTHER ASSETS
     RELATING TO CONTRACTS                         1,259,030      1,231,755
    Less: Accumulated Depreciation                  (896,212)      (855,837)
                                                     362,818        375,918
    GOODWILL, net                                    123,798        130,710
    INVESTMENTS IN AND ADVANCES TO
     UNCONSOLIDATED AFFILIATES                        35,601         25,898
    OTHER ASSETS                                      97,505        119,297
                                                    $861,658       $891,023
    LIABILITIES AND SHAREHOLDERS' EQUITY
    CURRENT LIABILITIES
      Accounts payable                               $37,184        $53,103
      Accrued expenses                                48,844         44,898
      Special charge                                   9,586             --
      Employee compensation                           25,405         30,057
      Advance payments from customers                 41,042         33,438
      Income taxes payable                            31,102         49,382
      Current portion of long-term debt                   --             69
        TOTAL CURRENT LIABILITIES                    193,163        210,947
    LONG-TERM DEBT, less current portion             341,900        349,400
    OTHER LIABILITIES                                 30,069         27,363
    DEFERRED INCOME TAXES                              6,737          6,737
    SHAREHOLDERS' EQUITY
      Preferred Stock, par value $.01 per share --
       20,000,000 shares authorized, none issued          --             --
      Common Stock, par value $.01 per share --
       150,000,000 shares authorized, 44,190,565
       and 44,171,315 shares issued, 34,223,872 and
       34,804,004 shares outstanding at November 25,
       2000 and February 26, 2000, respectively          442            442
      Additional paid-in capital                     177,075        176,750
      Equity carryover basis adjustment               (7,008)        (7,008)
      Accumulated other comprehensive income         (83,878)       (69,493)
      Retained earnings                              453,420        437,830
                                                     540,051        538,521
      Less cost of 9,966,693 and 9,367,311 shares
       in treasury at November 25, 2000 and
       February 26, 2000, respectively              (250,262)      (241,945)
                                                     289,789        296,576
                                                    $861,658       $891,023

    CONSOLIDATED STATEMENTS OF CASH FLOWS
    GTECH HOLDINGS CORPORATION AND SUBSIDIARIES
                                                           (Unaudited)
                                                        Nine Months Ended
                                                  November 25,    November 27,
                                                      2000            1999
                                                     (Dollars in thousands)
    OPERATING ACTIVITIES
    Net income                                       $17,250        $63,468
    Adjustments to reconcile net income to net
     cash provided by operating activities:
      Depreciation and other intangibles
       amortization                                  130,824        133,782
      Goodwill amortization                            4,691          4,689
      Special charge                                  40,018             --
      Equity in earnings of unconsolidated
       affiliates, net of dividends received            (922)           464
      Other                                             (815)        (3,739)
      Changes in operating assets and liabilities:
        Trade accounts receivable                     25,839        (19,718)
        Inventories                                  (30,977)         2,751
        Special charge                               (23,599)        (4,571)
        Other assets and liabilities                 (13,447)       (24,444)
    NET CASH PROVIDED BY OPERATING ACTIVITIES        148,862        152,682
    INVESTING ACTIVITIES
    Purchases of systems, equipment and other
     assets relating to contracts                   (107,916)       (92,863)
    Investments in and advances to unconsolidated
     subsidiaries                                    (14,048)       (15,226)
    Other                                             (9,447)       (14,077)
    NET CASH USED FOR INVESTING ACTIVITIES          (131,411)      (122,166)
    FINANCING ACTIVITIES
    Net proceeds from issuance of long-term debt      92,500        199,200
    Principal payments on long-term debt            (100,066)      (133,692)
    Purchases of treasury stock                      (13,995)       (98,747)
    Other                                              5,912            293
    NET CASH USED FOR FINANCING ACTIVITIES           (15,649)       (32,946)
    Effect of exchange rate changes on cash           (3,150)         2,447
    (DECREASE) INCREASE IN CASH AND CASH
     EQUIVALENTS                                      (1,348)            17
    Cash and cash equivalents at beginning of
     period                                           11,115          7,733
    CASH AND CASH EQUIVALENTS AT END OF PERIOD        $9,767         $7,750