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INTERNATIONAL GAME TECHNOLOGY REPORTS STRONG INCREASES IN NET INCOME FOR THE QUARTER AND SIX MONTHS ENDED MARCH 31, 1993

 RENO, Nev., April 14 /PRNewswire/ -- International Game Technology (IGT) (NYSE: IGT) reported net income for the quarter ended March 31, 1993, of $18.7 million or 15 cents per share (fully diluted), compared to the $11 million and 9 cents per share, in the second quarter of fiscal year 1992. Revenues for the second quarter of fiscal 1993 were $106.6 million, an increase of 42 percent over the $75.2 million reported last year.
 For the six months ended March 31, 1993, net income was $54.3 million or 41 cents per fully diluted share and included a gain on the sale of our riverboat investments. Before the gain, net income and earnings per share were $40.3 million and 31 cents, respectively. This represents a year-over-year improvement of 87 percent in net income, and a gain in earnings per share of 72 percent. Revenues for the six-month period of fiscal 1993 were $202.6 million, an increase of 36 percent over the $148.8 million recorded in the prior year.
 Growth in 1993 revenues and net profits resulted primarily from a 76-percent increase in product sales revenue for the quarter, and a 53-percent increase for the first half of fiscal 1993. The company also recorded a seven-percent improvement in gaming and casino operations revenue for the quarter, and showed a 17-percent gain for the first six months.
 The improvement in product sales revenue was due to added demand from U.S. riverboats, Indian casinos and sales to the pub and club markets in Australia. IGT shipped over 4,000 machines to riverboats during the first half of fiscal 1993, and approximately 4,500 machines to Indian casinos. The Australian subsidiary continues to record improvements over the prior year. Year-to-date shipments "down-under" reached 3,300 machines compared with 1,700 sold last year. These gains resulted primarily from increased sales into the developing Queensland and Victorian markets. Unit sales into the established New South Wales pub and club market also surpassed the prior year. Overall, IGT sold over 13,000 machines during the quarter, and a total of 24,000 machines for the six months ending March 1993. This compares to 7,200 and 15,000 machines sold in the corresponding periods of the prior year.
 Operating expenses during the quarter increased 39 percent over last year, and for the first six months, grew by 29 percent. The growth in expenses resulted primarily from higher research and development expenditures and depreciation. Depreciation for the quarter and year grew because of additional leased machines in Colorado, Mississippi and Oregon. For the six-month period, research and development expenses increased 74 percent due to increased emphasis and the required additional engineering personnel in both North America and Australia.
 Operating income in the second quarter reached $27.9 million, improving over 51 percent from the prior year. For the year, the company realized operating income of $53.9 million, or 27 percent of total revenues. This compares to operating income last year of $33.4 million and a 22-percent operating margin.
 Other income and expense for the first half of fiscal year 1993 included a net gain of $14 million related to the sale of the company's riverboat investments. IGT's riverboat investments consisted of a 40-percent partnership interest in The President Riverboat Casino in Davenport, Iowa, and a 45-percent partnership interest in non-gaming riverboat operations in St. Louis. The partnership interests were exchanged for common stock in President Riverboat Casinos Inc., and all of the stock was sold in an initial public offering of that company in December 1992. The company received $28.7 million in gross proceeds for its equity interest in the riverboat investments. This transaction is a significant step in the company's goal of exiting the direct ownership of casino gaming operations.
 On Feb. 23, 1993, the board of directors approved the fourth two-for-one stock split in as many years. The split was effective March 10, 1993, and increased the primary shares outstanding to approximately 120 million. The board also authorized the payment of a quarterly three-cent (post-split) per share dividend on IGT's common stock. The company announced today that the referenced dividend will be payable on June 1, 1993, to shareholders of record on May 1, 1993.
 International Game Technology is a world leader in the design, development and manufacture of microprocessor-based gaming products and software systems in all jurisdictions where gaming is legal.
 INTERNATIONAL GAME TECHNOLOGY
 FINANCIAL HIGHLIGHTS
 (In thousands, except per share amounts)
 Three Months Six Months
 Ended March 31: 1993 1992 1993 1992
 REVENUES
 Product sales $ 67,024 $ 38,050 $122,072 $ 79,817
 Gaming and casino
 operations 39,548 37,110 80,513 68,985
 Total revenues 106,572 75,160 202,585 148,802
 COSTS AND EXPENSES
 Cost of product sales 33,509 19,530 61,304 42,295
 Gaming and casino
 operations 18,763 15,790 35,565 29,794
 Selling, general and
 administrative 15,596 15,049 30,817 30,222
 Depreciation and
 amortization 5,370 3,308 10,964 6,586
 Research and development 4,256 2,221 7,884 4,527
 Provision for bad debts 1,181 791 2,164 1,991
 Total costs and
 expenses 78,676 56,689 148,698 115,415
 INCOME FROM OPERATIONS 27,897 18,471 53,887 33,387
 OTHER INCOME (EXPENSE)
 Interest income and other 6,191 4,958 12,676 10,313
 Interest expense (3,698) (3,390) (7,364) (6,808)
 Minority interest in
 income of consolidated
 subsidiaries (228) (223) (416) (272)
 Equity in unconsolidated
 subsidiaries --- (1,427) 631 (790)
 Gain on the sale of assets 710 71 6,631 22
 Gain on the sale of
 investments in riverboat
 operations --- --- 23,586 ---
 Other income (expense),
 net 2,975 (11) 35,744 2,465
 INCOME BEFORE INCOME
 TAXES 30,872 18,460 89,631 35,852
 PROVISION FOR INCOME
 TAXES 12,133 7,473 35,343 14,343
 NET INCOME $ 18,739 $ 10,987 $ 54,288 $ 21,509
 PRIMARY EARNINGS PER
 SHARE $0.15 $0.09 $0.44 $0.18
 FULLY DILUTED EARNINGS
 PER SHARE $0.15 $0.09 $0.41 $0.18
 Weighted Average Common
 and Common Equivalent
 Shares Outstanding 122,557 120,044 123,634 119,398
 Weighted Average Common
 Shares Assuming Full
 Dilution 136,427 135,137 138,137 134,804
 -0- 4/14/93
 /CONTACT: G. Thomas Baker of IGT, 702-688-0110/
 (IGT)


CO: International Game Technology ST: Nevada IN: CNO ENT SU: ERN

GT-BR -- SF008 -- 5518 04/14/93 08:09 EDT
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Date:Apr 14, 1993
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