International Game Technology Amends Its Joint Venture

International Game Technology IGT announced today that it, and its subsidiary IGT, and China LotSynergy Holdings Limited will continue their strategic alliance but have agreed, among other things, to release the lock up provision that prevented IGT from selling its shares in CLS and the convertible note and to reduce outstanding amounts owed to IGT under the convertible note in exchange for an acceleration of payments from CLS. The outstanding convertible note had an accreted value of $80.7 million, which will be modified to be redeemed at $61.1 million. CLS will make an immediate payment to IGT of $39.7 million. Upon making this payment, the May 2007 convertible note will be terminated and a new convertible note will be issued. The new convertible note will require payments of $12.2 million, payable on the first anniversary of the issuance of the new convertible note and $9.2 million, payable May 31, 2012. If CLS is unable to meet the new payment schedule, then it will be immediately required to pay $86.3 million, less any payments previously made on the combined convertible notes. IGT currently estimates that a charge of approximately $21 million will be recorded in the fiscal fourth quarter of 2010 as a result of the convertible note modification.