Editors’ Note

T. J. Matthews was appointed to the board of directors of International Game Technology (IGT) in December 2001, and was named Chairman in March 2005 after having served as President and Chief Executive Officer since 2003. He joined IGT as Chief Operating Officer in 2001, following its acquisition of Anchor Gaming, where he served as Chairman, President, and Chief Executive Officer. He previously served as President of Global Gaming Distributors, Inc., until it was acquired by Anchor Gaming in 1994. Matthews holds a BS in finance from the University of Southern California.

Company Brief

Reno-based International Game Technology (www.IGT.com) is a global company specializing in the design, development, manufacture, distribution, and sales of computerized gaming machines and systems products. One of only two gaming companies listed on the S&P 500, their diverse portfolio of gaming products spans a wide range of categories and targets customer markets with a variety of games, platforms, and systems, offered across gaming jurisdictions and online venues, where legal, worldwide.

IGT has grown from a small company into one of the world’s leaders in the design and manufacture of games, platforms, and systems for the gaming industry. How would you best describe how IGT evolved into a leading global company?

It’s hard to point to any one thing that describes how we evolved into the company we are today. Certainly this company was built on solid consistent management over the years, innovative technological advancements, and creative people, but I think our name further reveals the keys to our ongoing success.

The “International” aspect of our company’s name has added depth that few can rival. IGT was one of the first American companies ever to be allowed a license to do business in Japan, and we continue to do well in that market. Our acquisition strategies have resulted in a strong performing presence in Australia, in gaming markets throughout Europe and Latin America, and in online gaming markets where it is legal outside the United States. We have built working alliances and new partnerships with some of the top companies in the world, like Sega and Microsoft. With the future potential for growth in international markets from Asia to Latin America and just about every international tourist destination in between, IGT is uniquely positioned to capitalize on virtually any opportunity that presents itself.

“Game” stands for the success of some of the most popular gaming products ever created. From the very first video poker machines to Megabucks, linked progressives, and the Wheel of Fortune family of slots, the popularity of our games continues to set us apart.

“Technology” is where IGT has stood out, with innovations from slots and video machines to gaming management systems such as our EZ Pay ticket-in-ticket-out system, that single-handedly led to redefining the current slot floor and accelerating the replacement cycle for machines over the past few years.

IGT is Nevada’s largest manufacturer, largest exporter, and largest supplier to the gaming industry. Directly and indirectly, what is the breadth and scope of IGT’s importance to the state of Nevada?

IGT is a big part of Nevada and its history. As one of the top employers in the state, we directly provide jobs and indirectly support a tax base funded through tourism dollars that is the biggest contributor to the livelihood of the communities where our employees live. The benefits derived from gaming and IGT’s support of its expansion have helped make Nevada one of the most vibrant and fastest-growing states in America.

You’ve noted that the next 25 years “will present the gaming industry with many challenges and opportunities, and IGT is well prepared to meet them head-on.” Will you elaborate, please?

As we look ahead at the growth areas that have already been identified and are being developed in Nevada and throughout the world, we see not only the opportunities that expansion presents, but also the challenges to maintaining our position as an innovator. We are collaborating with the top companies in the computer industry in order to follow the trends they are pursuing, while working with the top gaming companies to find the very best ways to apply the new technologies to answer the needs of our industry.

The challenges are far ranging, from attracting new talent in a competitive job environment to managing the added demands that are brought about by international growth. These are good problems to have, and we have restructured our organization to be more globally positioned, rather than operating more independently, as we did in the past.

IGT’s international sales are continuing to comprise a larger share of the company’s revenue. In addition to its North American locations, IGT maintains sales, service, and manufacturing sites in Africa, Asia, Australia, Europe, and South America. In what ways, and in which markets, do you see the growth of IGT’s business activities continuing to gain momentum?

Our international operations contributed 23 percent of IGT’s revenues in fiscal year 2007, which is up from 21 percent last year. We also achieved record results for our subsidiaries in Europe, Latin America, Australia, Africa, and Asia. In addition, Japan and U.K. subsidiaries also made strong contributions, in spite of transitional market conditions.

With our investment in ChinaLot Synergy in 2007, we established a representative office in Beijing to be closer to the fast-growing Chinese lottery business. We have also agreed to provide over $100 million in financing to an Argentina casino operator to support their expansion efforts in Latin America. In Asia, our local presence in Macau and China will enable us to capitalize on growth opportunities in those regions. Looking to the future, we expect our business activities in Asia and Latin America, in particular, to continue to gain momentum.