GTECH HOLDINGS CORPORATION AND SUBSIDIARIES

                         CONSOLIDATED INCOME STATEMENTS

                                                          (Unaudited)
                                                       Three Months Ended
                                                    May 26,           May 27,
                                                     2001              2000
                                                    (Dollars in thousands, except per share amounts)
    Revenues:
       Services                                    $210,551 	$222,631
       Sales of products                           24,414	   19,367
                                                         234,965	  241,998
    Costs and expenses:
       Costs of services                            144,492 	  142,763
       Costs of sales                                  19,937             15,811
                                                            164,429	  158,574

    Gross profit                                         70,536	     83,424

    Selling, general and administrative              29,570	32,561
    Research and development                          7,633	12,926
    Goodwill amortization                                  1,473	1,609
       Operating expenses                                38,676	47,096

    Operating income                                     31,860	36,328

    Other income (expense):
       Interest income                                       2,030	1,925
       Equity in earnings of
        unconsolidated affiliates                          1,175	1,256
       Other income                                          2,178	  687
       Interest expense                                   (6,422)	(7,035)

    Income before income taxes                       30,821	 33,161

    Income taxes                                             11,712	 12,932

    Net income                                              $19,109	$20,229

    Basic earnings per share                               $.62	      $.58

    Diluted earnings per share                             $.61	      $.58



                   GTECH HOLDINGS CORPORATION AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS

                                                 (Unaudited)
                                                   May 26,        February
24,
                                                    2001              2001
                                          (In thousands, except share amounts)
    ASSETS

    CURRENT ASSETS
      Cash and cash equivalents                    	$10,320           $46,948
      Trade accounts receivable                    	 90,233           118,721
      Sales-type lease receivables                   	   8,753              8,722
      Inventories                                  	 	106,871          117,789
      Deferred income taxes                         	26,850            26,850
      Other current assets                          		18,834            18,798
          TOTAL CURRENT ASSETS       		261,861           337,828

    SYSTEMS, EQUIPMENT AND OTHER ASSETS
     RELATING TO CONTRACTS                       	1,317,135         1,283,414
    Less: Accumulated Depreciation                	(930,772)	      (922,080)
                                                   		386,363           361,334

    GOODWILL                                       		120,852           122,325

    OTHER ASSETS                                   	108,431           116,673
          TOTAL ASSETS                            	$877,507          $938,160

    LIABILITIES AND SHAREHOLDERS' EQUITY

    CURRENT LIABILITIES
      Short term borrowings                        		 $2,564            $2,316
      Accounts payable                             		 44,608            49,267
      Accrued expenses                             		 58,954            65,571
      Employee compensation                       	  18,708            31,898
      Advance payments from customers              	 58,068            55,418
      Income taxes payable                         		 69,150            64,573
      Current portion of long-term debt             	 3,961             3,512
          TOTAL CURRENT LIABILITIES              	  256,013           272,555

    LONG-TERM DEBT, less current portion           	376,975           316,961

    OTHER LIABILITIES                              	 33,705            29,883

    DEFERRED INCOME TAXES                          	  4,399             4,399

    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, 45,069,190 and 44,507,315
       shares issued, 29,862,779 and 34,257,527
       shares outstanding at May 26, 2001 and
       February 24, 2001, respectively                	 451               445
      Additional paid-in capital                  	 	196,936           183,294
      Equity carryover basis adjustment            	 (7,008)	     (7,008)
      Accumulated other comprehensive loss         	(96,032)	     (85,852)
      Retained earnings                            		497,364           479,305
                                                   		591,711           570,184
      Less cost of 15,206,411 and 10,249,788
       shares in treasury at May 26, 2001
       and February 24, 2001, respectively        	(385,296)	     (255,822)
                                                   		206,415           314,362
          TOTAL LIABILITIES AND
           SHAREHOLDERS' EQUITY                   	$877,507          $938,160



                   GTECH HOLDINGS CORPORATION AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                          		 (Unaudited)
                                                       		 Three Months Ended
                                                    		May 26,           May 27,
                                                    		 2001              2000
                                                    		 (Dollars in thousands)
    OPERATING ACTIVITIES
    Net income                                      		$19,109	$20,229
    Adjustments to reconcile net income to net
     cash provided by operating activities:
       Depreciation                                  		41,098	40,924
       Intangibles amortization                      		 2,343	3,165
       Goodwill amortization                          	1,473	1,609
       Equity in losses of unconsolidated
        affiliates, net of dividends received            	(9)	(525)
       Other                                           		(699)	65
       Changes in operating assets and
        liabilities:
         Trade accounts receivable                   	33,545	8,147
         Inventories                                 		10,918	(5,452)
         Special charge
              				 	(3,207)               --
         Other assets and liabilities               		(11,260) 	(28,751)
    NET CASH PROVIDED BY OPERATING ACTIVITIES        
					93,311	39,411

    INVESTING ACTIVITIES
    Purchases of systems, equipment and
     other assets relating to contracts            	 (72,142)	(33,834)
    Investments in and advances to
     unconsolidated subsidiaries                        	(37)	(11,328)
    Other                                               		209	(3,694)
    NET CASH USED FOR INVESTING ACTIVITIES          
					(71,970) 	(48,856)

    FINANCING ACTIVITIES
    Net proceeds from issuance of long-term debt     	61,100 	37,700
    Principal payments on long-term debt             	(1,145)	(25,049)
    Purchases of treasury stock
     					(132,094)               --
    Proceeds from stock options
      					13,648                --
    Other                                               		739	1,052
    NET CASH (USED FOR) PROVIDED BY
     FINANCING ACTIVITIES                           	(57,752)	13,703

    Effect of exchange rate changes on cash            	(217)	(2,694)
    (DECREASE) INCREASE IN CASH AND CASH
     EQUIVALENTS                                    	(36,628)	1,564

    Cash and cash equivalents at
     beginning of period                             		46,948	11,115

    CASH AND CASH EQUIVALENTS AT END OF PERIOD      
					$10,320 	$12,679