International Game TechnologyInternational Game Technology

Citibank Global Entertainment, Media and Citibank Global Entertainment, Media and Telecommunications ConferenceTelecommunications ConferenceJanuary 2008January 2008

Safe HarborSafe HarborCautionary Statement for Purposes of the Cautionary Statement for Purposes of the ““Safe HarborSafe Harbor”” Provisions of Provisions of

the Private Securities Litigation Reform Act of 1995:the Private Securities Litigation Reform Act of 1995:

This presentation contains "forwardThis presentation contains "forward--looking" statements, which are not looking" statements, which are not historical facts, but are forwardhistorical facts, but are forward--looking statements within the meaning of the looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statemenPrivate Securities Litigation Reform Act of 1995. These statements relate to ts relate to analyses and other information based on forecasts of future resuanalyses and other information based on forecasts of future results and lts and estimates of amounts not yet determinable. These statements alsoestimates of amounts not yet determinable. These statements also relate to relate to our future prospects and proposed new products, services, develoour future prospects and proposed new products, services, developments or pments or business strategies. These forwardbusiness strategies. These forward--looking statements are identified by their looking statements are identified by their use of terms and phrases such as "anticipate," "believe," "coulduse of terms and phrases such as "anticipate," "believe," "could," "estimate," ," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will,""expect," "intend," "may," "plan," "predict," "project," "will," "continue," and "continue," and other similar terms and phrases, including references to assumptother similar terms and phrases, including references to assumptions. ions. Although we believe that the expectations reflected in any of ouAlthough we believe that the expectations reflected in any of our forwardr forward--looking statements are reasonable, actual results could differ mlooking statements are reasonable, actual results could differ materially from aterially from those projected or assumed. Our future financial condition and rthose projected or assumed. Our future financial condition and results of esults of operations, as well as any forwardoperations, as well as any forward--looking statements, are subject to change looking statements, are subject to change and to inherent known and unknown risks and uncertainties. We doand to inherent known and unknown risks and uncertainties. We do not not intend, and undertake no obligation, to update our forwardintend, and undertake no obligation, to update our forward--looking looking statements to reflect future events or circumstances. statements to reflect future events or circumstances.

This presentation may include certain nonThis presentation may include certain non--GAAP financial measures as defined GAAP financial measures as defined under SEC rules. As required by SEC rules, we provide a reconciunder SEC rules. As required by SEC rules, we provide a reconciliation of liation of those measures to the most directly comparable GAAP measures, whthose measures to the most directly comparable GAAP measures, which is ich is available in our GAAP Reconciliation on our investor relations wavailable in our GAAP Reconciliation on our investor relations website at ebsite at wwww.igt.com.ww.igt.com.

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IGT OverviewIGT Overview

Product Innovation Product Innovation

Financial SummaryFinancial Summary

Growth OpportunitiesGrowth Opportunities

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IGT OverviewIGT OverviewA world leader in providing gaming technology productsA world leader in providing gaming technology products

Substantial worldwide presence serving regulated gaming Substantial worldwide presence serving regulated gaming jurisdictionsjurisdictions

5,400 employees worldwide5,400 employees worldwide

Superior manufacturing and distribution capabilitiesSuperior manufacturing and distribution capabilitiesAnnual production capacity of 120,000 machines at Reno facilityAnnual production capacity of 120,000 machines at Reno facility

Worldwide manufacturer (US, UK and Japan)Worldwide manufacturer (US, UK and Japan)

Diverse business model drives financial stabilityDiverse business model drives financial stabilityRecurring revenues contribute to earnings consistencyRecurring revenues contribute to earnings consistency

Gaming operations and nonGaming operations and non--machine sources comprised 67% of machine sources comprised 67% of revenue in 2007revenue in 2007

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Current IGT InitiativesCurrent IGT InitiativesLeverage industryLeverage industry--leading content and leading content and intellectual property portfoliointellectual property portfolio

Focus on delivery of systemsFocus on delivery of systems--based games based games and applications and applications

Migrate towards software and service Migrate towards software and service modelmodel

Serve new market opportunities worldwide Serve new market opportunities worldwide through platform innovationthrough platform innovation

Central determination systemsCentral determination systems

Diversified earnings and cash flows, Diversified earnings and cash flows, coupled with prudent capital deploymentcoupled with prudent capital deployment

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Company OverviewCompany Overview

Product InnovationProduct Innovation

Financial SummaryFinancial Summary

Growth OpportunitiesGrowth Opportunities

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Technology LeaderTechnology LeaderR&D spend of $202 million in 2007R&D spend of $202 million in 2007

Twice the investment of our next largest competitorTwice the investment of our next largest competitor

In addition to our Nevada development team, we have six In addition to our Nevada development team, we have six international design centers international design centers

Over 1,500 people worldOver 1,500 people world--wide dedicated to product wide dedicated to product developmentdevelopment

R&D spending is a key driver of market share and R&D spending is a key driver of market share and leadership positionleadership position

Broad patent and trademark libraryBroad patent and trademark library

Significant annual game introductionsSignificant annual game introductions

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Product Innovations at G2EProduct Innovations at G2ENetwork SystemsNetwork Systems

sbsb™™ productsproducts

New CabinetsNew Cabinets

Group PlayGroup PlayMM--P SeriesP Series™™

DigiDeal table gamesDigiDeal table gamesebayebay®® slotsslots

Game FeaturesGame FeaturesMultiMulti--Level ProgressivesLevel ProgressivesMultiMulti--Layer Display Layer Display (MLD) technology(MLD) technology

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Generating Returns on R&DGenerating Returns on R&DsbsbTMTM will potentially offer phases or stages will potentially offer phases or stages of opportunityof opportunity

Stage One Stage One -- First adoptersFirst adoptersOperators who want to stay on the Operators who want to stay on the ““cutting edgecutting edge””

Stage Two Stage Two -- Existing floors adopt new Existing floors adopt new technologytechnology

Competitive advantage proven by first adoptersCompetitive advantage proven by first adoptersStage Three Stage Three -- Business model evolvesBusiness model evolves

Leverage innovation as further opportunities present Leverage innovation as further opportunities present themselves themselves

Process seen in other cycles including Process seen in other cycles including TITO and BonusingTITO and Bonusing

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Company OverviewCompany Overview

Product Innovation Product Innovation

Financial SummaryFinancial Summary

Growth OpportunitiesGrowth Opportunities

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2007 Financial Summary2007 Financial SummaryRecord revenues of $2.6 billionRecord revenues of $2.6 billion

Record gaming operations and nonRecord gaming operations and non--machine salesmachine sales

Record gross profit of $1.5 billion, or 56% gross Record gross profit of $1.5 billion, or 56% gross marginmargin

Operating income of $800 millionOperating income of $800 million20% contribution from International markets20% contribution from International markets

Strong cash returnsStrong cash returnsAdjusted EBITDA totaled a record $1.1 billionAdjusted EBITDA totaled a record $1.1 billion

Record cash flows from operations of $822 millionRecord cash flows from operations of $822 million

28.2 million shares repurchased for $1.1 billion28.2 million shares repurchased for $1.1 billion

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IGTIGT’’s Diversified Businesss Diversified BusinessTotal revenue of $2.6 billionTotal revenue of $2.6 billion

North AmericaNorth America

Gaming OperationsGaming Operations

47%47%

InternationalInternationalGaming OperationsGaming Operations

5%5%

North AmericaNorth AmericaMachine SalesMachine Sales

18%18%

ConsolidatedConsolidatedNonNon--Machine SalesMachine Sales

15%15%

InternationalInternationalMachine SalesMachine Sales

15%15%

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Increasing EfficiencyIncreasing EfficiencyFY04 represented the peak of the TITOFY04 represented the peak of the TITO--driven driven cycle with 159,200 units soldcycle with 159,200 units sold

FY07 FY07 -- 105,900 units sold105,900 units sold

Gaming OperationsGaming OperationsRecurring revenue installed base up 22,000 units compared to Recurring revenue installed base up 22,000 units compared to FY04FY04Gross Margin at 60%, up from 54% in FY04Gross Margin at 60%, up from 54% in FY04

Product SalesProduct SalesHigher margin nonHigher margin non--machine revenues of $384 million, up 50% machine revenues of $384 million, up 50% over FY04over FY04

Net result of our efforts: Peak Earnings and Net result of our efforts: Peak Earnings and Gross Margin in FY07Gross Margin in FY07

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Capital DeploymentCapital DeploymentCash flows from operations of $822 million in FY07, Cash flows from operations of $822 million in FY07, which fund our capital deployment objectiveswhich fund our capital deployment objectives

Acquisitions & Investments in AffiliatesAcquisitions & Investments in AffiliatesTo expand our technological capabilitiesTo expand our technological capabilitiesTo enter into strategic valueTo enter into strategic value--creating partnership creating partnership

IGT CapitalIGT CapitalFunding of customer projects to expand or open new locationsFunding of customer projects to expand or open new locations

Share RepurchaseShare Repurchase$1.1 billion repurchased in 2007$1.1 billion repurchased in 2007

Capital ExpendituresCapital Expenditures$344 million in 2007$344 million in 2007

DividendsDividendsPaid cash dividends of $174 millionPaid cash dividends of $174 million

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Company OverviewCompany Overview

Product Innovation Product Innovation

Financial SummaryFinancial Summary

Growth OpportunitiesGrowth Opportunities

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Opportunities on the HorizonOpportunities on the HorizonBusiness InitiativesBusiness Initiatives

Anticipated new and expansion capacity over next three yearsAnticipated new and expansion capacity over next three yearsIncreasing international contributionIncreasing international contributionsbsbTMTM commercialization and subsequent phases of deploymentcommercialization and subsequent phases of deployment

Revenues efficiently generating cash flowRevenues efficiently generating cash flowFY07 Revenue up 4%; Operating Cash Flow up 32%FY07 Revenue up 4%; Operating Cash Flow up 32%

Continued prudence in capital deploymentContinued prudence in capital deploymentRemaining authorization of 31 million shares expected to be Remaining authorization of 31 million shares expected to be taken out before end of 2010taken out before end of 2010Maintain Investment GradeMaintain Investment GradeInvest in our business to continue innovationInvest in our business to continue innovationStrategic focus for any potential dealsStrategic focus for any potential deals

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Market DevelopmentMarket DevelopmentCurrent OpportunitiesCurrent Opportunities

MacauMacau

AsiaAsia

Latin AmericaLatin America

SingaporeSingapore

CaliforniaCalifornia

PennsylvaniaPennsylvania

FloridaFlorida

MarylandMaryland

MassachusettsMassachusetts

Future International OpportunitiesFuture International Opportunities

Japan CasinosJapan CasinosChinaChinaBrazilBrazilIndiaIndia 17

Opportunity TimelineOpportunity Timeline20082008

New cabinets releasedNew cabinets releasedIncreased AVPIncreased AVP®® platform penetration with spinning reel and platform penetration with spinning reel and pokerpokerNew and expansion openings in second halfNew and expansion openings in second half

20092009--20102010New and expansion openingsNew and expansion openings•• City Center / Aliante / PA / CACity Center / Aliante / PA / CA--new compactsnew compacts•• LV Strip / Kansas / MSLV Strip / Kansas / MS--Gulf Coast / Atlantic City / SingaporeGulf Coast / Atlantic City / Singapore

sbsbTMTM deploymentdeployment

2011 and beyond2011 and beyondNew and expansion openingsNew and expansion openings•• Potential new domestic markets include MD and MAPotential new domestic markets include MD and MA•• Asian markets considering legalization include Japan and TaiwanAsian markets considering legalization include Japan and Taiwan

Subsequent phases of sbSubsequent phases of sbTMTM and opportunity from and opportunity from ““openopen”” floorsfloors

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Q&A

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