In a move designed to broaden the company’s management team to take advantage of future growth opportunities, Scientific Games appointed Michael Chambrello president and chief operating officer.

Chambrello, who has served in a variety of key roles across nearly 20 years in the lottery industry, previously served as President of GTECH Corporation and Executive Vice President of GTECH Holdings Corporation. He will assume his new position at Scientific Games on July 1, 2005.

“We are all extraordinarily proud of what we've built so far,” Lorne Weil, chairman and CEO of Scientific Games said in an announcement to employees. “I have never been more excited about the growth opportunities that lie ahead in the lottery and pari-mutuel industries. I will work closely with Mike to leverage these growth opportunities and position Scientific Games to lead our industries into the future.”

As the corporation moves into what Weil called the “most dynamic stage of growth in our history,” Chambrello brings an unmatched track record of operational success to continue Scientific Games’ focus on customer needs. He will identify areas where the Company can better serve customers and enhance partnerships to deliver on operating and marketing opportunities in the future.

Weil described Chambrello's appointment as bringing a “seasoned franchise player” to Scientific Games, and said that he will "boost operational discipline, performance and expansion of all our businesses.” Weil added that he and Chambrello “will work side-by-side as he becomes fully integrated into his new role at Scientific Games."

"Scientific Games is the most dynamic and innovative company in our marketplace. Robust organic growth, strategic mergers and acquisitions, and a number of important wins have put the company in an extremely advantageous position," Chambrello said. "I am very excited about my new role as President and COO, and look forward to partnering with Lorne and our management team as we build for the future."

In connection with his appointment, Chambrello has entered into a contract under which he will receive a stock option grant covering one million shares of the Company’s common stock, to be issued as of July 1, 2005 at an exercise price equal to the average of the high and low trading prices of the stock on the preceding day, vesting in one-third increments at the end of the first, second and third anniversaries of his employment. The stock option was approved as part of his compensation package as an employment inducement grant pursuant to Nasdaq Marketplace Rule 4350 without stockholder approval.

He most recently served as President and CEO of Environmental Systems Products, a privately held company in Connecticut. ESP is in a closely regulated industry that provides environmental testing solutions for governmental customers.