GTECH HOLDINGS CORPORATION AND SUBSIDIARIES
                         CONSOLIDATED INCOME STATEMENTS
                                                        Fourth Quarter
                                                       Fiscal Year Ended
                                                February 24,      February 26,
                                                    2001              2000
                                                   (Dollars in thousands,
                                                  except per share amounts)
    Revenues:
      Services                                    $215,808          $218,325
      Sales of products                             30,098            48,858
                                                   245,906           267,183
    Costs and expenses:
      Costs of services                            133,372           135,558
      Costs of sales                                22,146            31,448
                                                   155,518           167,006
    Gross profit                                    90,388           100,177
    Selling, general and administrative             28,624            30,578
    Research and development                        11,078            11,390
    Goodwill amortization                            1,474             1,564
    Special charge                                   2,252	      (1,104)
    Operating income                                46,960            57,749
    Other income (expense):
      Interest income                                1,284               906
      Equity in earnings of
       unconsolidated affiliates                       553             1,042
      Other income (expense)                            20	      (3,663)
      Interest expense                              (6,361)	      (7,630)
    Income before income taxes                      42,456            48,404
    Income taxes                                    16,558            18,287
    Net income                                     $25,898           $30,117

    Earnings per share before special charges:
      Basic                                          $0.80             $0.85
      Diluted                                        $0.79             $0.85
    Earnings per share after special charges:
      Basic                                          $0.76             $0.87
      Diluted                                        $0.75             $0.87

                 GTECH HOLDINGS CORPORATION AND SUBSIDIARIES
                        CONSOLIDATED INCOME STATEMENTS
                                                  Fiscal Year Ended
                                       February 24  February 26,  February 27,
                                             2001        2000       1999
                              (Dollars in thousands, except per share amounts)
    Revenues:
      Services                              $856,475    $860,419   $887,395
      Sales of products                       80,068     150,379     85,528
                                             936,543   1,010,798    972,923
    Costs and expenses:
      Costs of services                      564,095     555,309    589,765
      Costs of sales                          74,844     101,953     59,825
                                             638,939     657,262    649,590
    Gross profit                             297,604     353,536    323,333
    Selling, general and administrative      117,997     122,334    120,601
    Research and development                  49,267      46,053     40,158
    Goodwill amortization                      6,165       6,253      5,854
    Special charge                            42,270      (1,104)    15,000
    Operating income                          81,905     180,000    141,720
    Other income (expense):
      Interest income                          5,596       3,509      4,079
      Equity in earnings of
       unconsolidated affiliates               3,167       2,843      7,113
      Other income (expense)                   7,232      (1,343)    25,447
      Interest expense                       (27,165)    (29,032)   (27,405)
    Income before income taxes                70,735     155,977    150,954
    Income taxes                              27,587      62,392     61,891
    Net income                               $43,148     $93,585    $89,063

    Earnings per share before special
     and additional charges:
      Basic                                    $2.08       $2.57      $2.39
      Diluted                                  $2.08       $2.56      $2.37
    Earnings per share after special
     and additional charges:
      Basic                                    $1.25       $2.58      $2.17
      Diluted                                  $1.25       $2.58      $2.16

                 GTECH HOLDINGS CORPORATION AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS
                                       February 24,               February 26,
                                           2001                       2000
    ASSETS                                      (Dollars in thousands)
    CURRENT ASSETS:
     Cash and cash equivalents            $46,948 		$11,115
     Trade accounts receivable            118,721		115,358
     Sales-type lease receivables           8,722		10,110
     Inventories                          117,789		67,418
     Deferred income taxes                 26,850		15,853
     Other current assets                  18,798		19,346
              TOTAL CURRENT ASSETS        337,828		239,200
    SYSTEMS, EQUIPMENT AND OTHER ASSETS
     RELATING TO CONTRACTS                361,334		375,918
    GOODWILL                              122,325		130,710
    OTHER ASSETS                          116,673		145,195
              TOTAL ASSETS               $938,160		$891,023

    LIABILITIES AND SHAREHOLDERS' EQUITY
    CURRENT LIABILITIES:
     Short term borrowings                 $2,316		$1,620
     Accounts payable                      49,267		53,103
     Accrued expenses                      55,140		43,278
     Special charge                        10,431                ---
     Employee compensation                 31,898		30,057
     Advance payments from customers       55,418		33,438
     Income taxes payable                  64,573		49,382
     Current portion of long-term debt      3,512		    69
              TOTAL CURRENT LIABILITIES   272,555		210,947
    LONG-TERM DEBT, less current
     portion                              316,961		349,400
    OTHER LIABILITIES                      29,883		 27,363
    DEFERRED INCOME TAXES                   4,399		  6,737
    COMMITMENTS AND CONTINGENCIES            ---                   ---
    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, 44,507,315 and
      44,171,315 shares issued;
      34,257,527 and 34,804,004 shares
      outstanding at February 24, 2001
      and February 26, 2000, respectively     445		    442
     Additional paid-in capital           183,294		176,750
     Equity carryover basis adjustment     (7,008)		 (7,008)
     Accumulated other comprehensive
      income                              (85,852)		 (69,493)
     Retained earnings                    479,305		  437,830
                                          570,184		  538,521
     Less cost of  10,249,788 and
      9,367,311 shares in treasury at
      February 24, 2001 and February 26,
      2000, respectively                 (255,822)		  (241,945)
                                          314,362 		   296,576
              TOTAL LIABILITIES AND
               SHAREHOLDERS' EQUITY      $938,160		  $891,023

                 GTECH HOLDINGS CORPORATION AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                  Fiscal Year Ended
                                        February 24, February 26, February 27,
                                              2001        2000         1999
                                                 (Dollars in thousands)
    OPERATING ACTIVITIES
    Net income                               $43,148     $93,585	$89,063
    Adjustments to reconcile net income
     to net cash provided by operating
     activities:
       Depreciation                          156,262     168,284	184,748
       Intangibles amortization               11,968      10,839	  8,719
       Goodwill amortization                   6,165       6,253	  5,854
       Special charge                         42,270      (1,104)	 15,000
       Deferred income taxes provision
        (benefit)                            (13,335)      1,753	  9,868
       Termination of interest rate swap
						70         ---          ---
       Equity in earnings (losses) of
        unconsolidated affiliates,
         net of dividends received             1,343        (376)  	  (3,117)
       Foreign currency transaction
        losses (gains)                          (970)        900	  (8,650)
       Other                                   1,408         954	   2,405
       Changes in operating assets and
        liabilities, net of effects of
        acquisitions:
         Trade accounts receivable               956     (10,006)	  (10,716)
         Inventories                         (50,369)     (5,659)	  (33,479)
         Special charge                      (23,426)     (4,954)	  (26,105)
         Other assets and liabilities         63,580     (29,687)  	   52,692
    NET CASH PROVIDED BY OPERATING
     ACTIVITIES                              251,970     230,782	  286,282
    INVESTING ACTIVITIES
    Purchases of systems, equipment and
     other assets relating to contracts     (136,891)   (128,618)         (121,198)
    Acquisitions (net of cash acquired)          ---        (318)	   (19,687)
    Investments in and advances to
     unconsolidated affiliates               (16,601)    (16,209)	      (529)
    Cash received from affiliates              2,075         ---	      1,906
    Proceeds from sale of investments            ---         ---	     84,904
    Other                                    (11,149)    (19,198)	    (22,627)
    NET CASH USED FOR INVESTING
     ACTIVITIES                             (162,566)   (164,343)	    (77,231)
    FINANCING ACTIVITIES
    Net proceeds from issuance of long-
     term debt                                95,908     221,500	    117,706
    Principal payments on long-term debt    (138,737)   (192,936)	   (254,768)
    Purchases of treasury stock              (19,587)    (98,747)	    (70,757)
    Proceeds from stock options                6,455         316	      4,976
    Other                                      5,236       2,114	       (205)
    NET CASH USED FOR FINANCING
     ACTIVITIES                              (50,725)    (67,753) 	    (203,048)
    Effect of exchange rate changes on
     cash                                     (2,846)      4,696	      (6,520)
    INCREASE (DECREASE) IN CASH AND CASH
     EQUIVALENTS                              35,833       3,382 		(517)
    Cash and cash equivalents at
     beginning of year                        11,115       7,733		8,250
    CASH AND CASH EQUIVALENTS AT END OF
     YEAR                                    $46,948     $11,115		$7,733

    SUPPLEMENTAL CASH FLOW INFORMATION:
      Interest payments (net of amounts
       capitalized)                          $26,937     $28,697		$27,574
      Income tax payments                     44,297      66,883		24,945
      Income tax refunds                     (18,701)       (662)		(13,345)