Costs Associated with Exit or Disposal Activities

On July 8, 2009, International Game Technology (IGT, we, our) announced further reductions in its workforce of approximately 160 positions. This is part of continuing and ongoing efforts to achieve greater operational efficiencies amidst difficult market and economic conditions. Combined with workforce reductions previously announced in November 2008 and January 2009, total staff reductions during the current fiscal year represent approximately 15% of our worldwide workforce.

This reduction is being accomplished through involuntary employee separation arrangements. We expect to recognize between $5 million and $7 million in non-recurring cash charges for severance and other one-time termination costs during the third and fourth quarter of fiscal 2009 in connection with this additional workforce reduction.

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