IGT update regarding Katrina

T.J. Matthews, Chairman of the Board and Chief Executive Officer commented that the company has located all 100 of its Gulf Coast area employees. The company now plans to focus on providing immediate assistance to its employees and their families who are dealing with the aftermath of this massive storm. To further respond to this disaster, IGT has committed $1 million to assist relief efforts for our employees, customers and the communities that have suffered from the hurricane. IGT has additionally established an IGT Employee Relief Program to assist our affected employees.

IGT's gaming operations monitoring sites in Gulfport and New Orleans were rendered non-operational by Hurricane Katrina and remain down. We are currently working with the gaming regulators in Louisiana and Mississippi and seeking emergency approval for alternative monitoring sites that could be operational by September 30th. At the time of the hurricane, IGT owned and operated approximately 2,300 gaming devices in Louisiana and Mississippi. Approximately 900 of these devices are located in casinos that were directly affected by the disaster and will remain non-operational until such time as the casinos reopen. The balance of these devices are located in casinos that were either not affected by the hurricane or have since reopened, of which, approximately 700 are inoperable pending reestablishment of our monitoring sites. The remaining 700 devices are operating as stand-alone or Native American linked machines. It is anticipated that play levels may be soft until the markets return to normal.