Consolidated statement of operations to follow:

    CONSOLIDATED INCOME STATEMENTS

    GTECH HOLDINGS CORPORATION AND SUBSIDIARIES

                                                         (Unaudited)
                                                       Three Months Ended
                                                  August 26,     August 28,
                                                        2000           1999
                                                     (Dollars in thousands,
                                                   except per share amounts)
    Revenues:
     Services                                       $204,209       $209,843
     Sales of products                                23,399         45,546
                                                     227,608        255,389
    Costs and expenses:
     Costs of services                               142,622        138,351
     Costs of sales                                   29,615         34,374
                                                     172,237        172,725

    Gross profit                                      55,371         82,664

    Selling, general and administrative               32,237         29,780
    Research and development                          13,351         11,290
    Goodwill amortization                              1,609          1,563
      Operating expenses                              47,197         42,633

    Special charge                                    40,018              -

    Operating income (loss)                         (31,844)         40,031

    Other income (expense):
     Interest income                                   1,044            864
     Equity in earnings
      of unconsolidated affiliates                       838            793
     Other income                                      1,754          2,332
     Interest expense                                (6,653)        (7,149)

    Income (loss) before income taxes               (34,861)         36,871

    Income taxes (benefit)                          (13,595)         15,117

    Net income (loss)                              $(21,266)        $21,754

    Earnings per share before special
     and additional charges:
      Basic and diluted                                 $.18           $.58

    Earnings (loss) per share after special
     and additional charges:
      Basic and diluted                               $(.61)           $.58

    CONSOLIDATED INCOME STATEMENTS

    GTECH HOLDINGS CORPORATION AND SUBSIDIARIES
                                                         (Unaudited)
                                                      Six Months Ended
                                                  August 26,     August 28,
                                                        2000           1999
                                                     (Dollars in thousands,
                                                  except per share amounts)
    Revenues:
      Services                                      $426,840       $421,001
      Sales of products                               42,766         73,048
                                                     469,606        494,049
    Costs and expenses:
      Costs of services                              285,385        278,263
      Costs of sales                                  45,426         52,492
                                                     330,811        330,755

    Gross profit                                     138,795        163,294

    Selling, general and administrative               64,798         60,218
    Research and development                          26,277         21,966
    Goodwill amortization                              3,218          3,126
      Operating expenses                              94,293         85,310

    Special charge                                    40,018              -

    Operating income                                   4,484         77,984

    Other income (expense):
    Interest income                                    2,969          1,701
    Equity in earnings of unconsolidated affiliates    2,094          1,936
    Other income                                       2,441          1,278
    Interest expense                                (13,688)       (13,934)

    Income (loss) before income taxes                (1,700)         68,965

    Income taxes (benefit)                             (663)         28,276

    Net income (loss)                               $(1,037)        $40,689

    Earnings per share before special
     and additional charges:
    Basic and diluted                                   $.76          $1.08

    Earnings (loss) per share after special
     and additional charges:
    Basic and diluted                                 $(.03)          $1.08


    CONSOLIDATED BALANCE SHEETS

    GTECH HOLDINGS CORPORATION AND SUBSIDIARIES

                                                 (Unaudited)
                                                  August 26,   February 26,
    ASSETS                                              2000           2000
                                        (In thousands, except share amounts)
    CURRENT ASSETS
      Cash and cash equivalents                       $9,958        $11,115
      Trade accounts receivable                      105,058        115,358
      Sales-type lease receivables                    10,032         10,110
      Inventories                                     72,961         67,418
      Deferred income taxes                           15,853         15,853
      Other current assets                            20,141         19,346

                 TOTAL CURRENT ASSETS                234,003        239,200


    SYSTEMS, EQUIPMENT AND OTHER ASSETS
     RELATING TO CONTRACTS                         1,265,197      1,231,755

    Less: Accumulated Depreciation                 (899,835)      (855,837)
                                                     365,362        375,918

    GOODWILL, net                                    125,271        130,710

    INVESTMENTS IN AND ADVANCES
     TO UNCONSOLIDATED AFFILIATES                     35,208         25,898

    OTHER ASSETS                                     103,792        119,297

                                                    $863,636       $891,023
    LIABILITIES AND SHAREHOLDERS' EQUITY

    CURRENT LIABILITIES
    Accounts payable                                 $40,435        $53,103
    Accrued expenses                                  54,383         44,898
    Special charge                                    21,557              -
    Employee compensation                             24,070         30,057
    Advance payments from customers                   35,591         33,438
    Income taxes payable                              30,651         49,382
    Current portion of long-term debt                      -             69

    TOTAL CURRENT LIABILITIES                        206,687        210,947

    LONG-TERM DEBT, less current portion             331,000        349,400

    OTHER LIABILITIES                                 28,265         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,
     44,183,315 and 44,171,315 shares issued,
     34,906,389 and 34,804,004 shares
     outstanding at August 26, 2000
     and February 26, 2000, respectively                 442            442

    Additional paid-in capital                       176,953        176,750
    Equity carryover basis adjustment                (7,008)        (7,008)
    Accumulated other comprehensive income          (75,838)       (69,493)
    Retained earnings                                435,755        437,830

                                                     530,304        538,521
    Less cost of 9,276,926 and 9,367,311
     shares in treasury at August 26, 2000
     and February 26, 2000, respectively           (239,357)      (241,945)
                                                     290,947        296,576
                                                    $863,636       $891,023

    CONSOLIDATED STATEMENTS OF CASH FLOWS

    GTECH HOLDINGS CORPORATION AND SUBSIDIARIES

                                                          (Unaudited)
                                                       Six Months Ended
                                                  August 26,     August 28,
                                                        2000           1999
                                                     (Dollars in thousands)

    OPERATING ACTIVITIES
    Net income (loss)                               $(1,037)        $40,689

    Adjustments to reconcile net income
     (loss) to net cash provided
     by operating activities:
    Depreciation and other intangibles
     amortization                                     87,575         88,129
    Goodwill amortization                              3,218          3,126
    Special charge                                    40,018              -
    Equity in earnings of unconsolidated
     affiliates, net of dividends received           (1,130)            138
    Other                                                998        (2,224)
    Changes in operating assets and liabilities:
      Trade accounts receivable                       12,087       (24,091)
      Inventories                                    (5,541)          9,361
      Special charge                                (11,628)        (3,904)
      Other assets and liabilities                  (17,951)       (15,396)

    NET CASH PROVIDED BY OPERATING ACTIVITIES        106,609         95,828

    INVESTING ACTIVITIES
    Purchases of systems, equipment
     and other assets relating to contracts         (66,641)       (62,549)
    Investments in and advances
     to unconsolidated subsidiaries                 (11,688)       (10,586)
    Other                                            (7,593)       (10,236)
    NET CASH USED FOR INVESTING ACTIVITIES          (85,922)       (83,371)


    FINANCING ACTIVITIES
    Net proceeds from issuance of long-term debt      38,000         97,200
    Principal payments on long-term debt            (56,466)       (39,235)
    Purchases of treasury stock                      (1,530)       (70,327)
    Other                                              1,269            207
    NET CASH USED FOR FINANCING ACTIVITIES          (18,727)       (12,155)

    Effect of exchange rate changes on cash          (3,117)            715

    (DECREASE) INCREASE IN CASH
      AND CASH EQUIVALENTS                           (1,157)          1,017

    Cash and cash equivalents
    at beginning of period                            11,115          7,733

    CASH AND CASH EQUIVALENTS AT END OF PERIOD        $9,958         $8,750