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    &lt;p style=
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    &lt;b&gt;7.&lt;/b&gt;
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    &lt;b&gt;Acquisitions&lt;/b&gt;
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    &lt;b&gt;Progressive Gaming International Corp.&lt;/b&gt;
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    In January 2009, we acquired certain operating assets of PGIC.
    The purchase consideration collectively totaled $24.0 million,
    including $17.3 million in cash and $6.8 million of fair value
    from our note investment with accrued interest. See Note 3.
    Certain global assets and operations of PGIC were integrated
    with respective IGT offices serving Europe, Asia, Australia,
    Latin America, Canada, and the US. We believe this purchase
    will provide IGT with additional market opportunities using the
    PGIC technology to augment our current systems product
    offerings and increase our systems installed base.
    &lt;/p&gt;
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    With the business valuation not yet complete at June 30, 2009,
    we preliminarily allocated the purchase consideration to:
    &lt;/p&gt;
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    &amp;#170;
    &lt;/p&gt;
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    tangible assets of $15.9 million, including cash of $1.8
    million
    &lt;/p&gt;
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    &amp;#170;
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    identifiable intangible assets of $13.7 million
    &lt;/p&gt;
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    &amp;#170;
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    in-process R&amp;amp;D of $0.6 million with no future alternative
    use, immediately charged to R&amp;amp;D
    &lt;/p&gt;
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    &amp;#170;
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    liabilities of $6.2 million
    &lt;/p&gt;
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    &lt;b&gt;Cyberview Technology, Inc.&lt;/b&gt;
    &lt;/p&gt;
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    In July 2008, we paid approximately $88.6 million for
    substantially all of the assets of Cyberview, a group of
    companies that develop, produce, and implement innovative,
    integrated gaming systems solutions. The purchase price
    included a separate license agreement providing rights to
    certain additional Cyberview patents. We anticipate this
    purchase will enable more immediate access to licensed betting
    office and video lottery markets in Europe, as well as further
    strengthen our IP portfolio and enhance our server-based
    initiatives.
    &lt;/p&gt;
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    We allocated the purchase price to:
    &lt;/p&gt;
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    tangible assets of $30.8 million, including cash of $16.5
    million
    &lt;/p&gt;
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    &amp;#170;
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    identifiable intangible assets of $31.5 million
    &lt;/p&gt;
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    &amp;#170;
    &lt;/p&gt;
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    goodwill of $35.8 million, which may be deductible for tax
    purposes
    &lt;/p&gt;
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    &amp;#170;
    &lt;/p&gt;
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    liabilities of $9.5 million
    &lt;/p&gt;
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    &lt;b&gt;Million-2-1&lt;/b&gt;
    &lt;/p&gt;
    &lt;p style=
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    In June 2008, we completed the acquisition of M-2-1, a mobile
    gaming company based in Manchester, UK, for $10.3 million.
    Additionally, we committed to pay earn-out consideration up to
    a maximum of $12.3 million, based on current exchange rates,
    payable through fiscal 2011 contingent upon M-2-1 meeting
    certain financial targets. If paid, a portion will be recorded
    as additional purchase consideration and a portion as
    compensation expense ratably over the service period through
    June 2011. In addition to gaining access to M-2-1's IP, we
    anticipate this business combination will enable us to
    establish new markets and channels for IGT's game content.
    &lt;/p&gt;
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    We allocated the purchase price to:
    &lt;/p&gt;
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    &amp;#170;
    &lt;/p&gt;
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    tangible assets of $1.6 million, including cash of $0.8 million
    &lt;/p&gt;
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    &amp;#170;
    &lt;/p&gt;
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    identifiable intangible assets of $7.2 million
    &lt;/p&gt;
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    &amp;#170;
    &lt;/p&gt;
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    goodwill of $6.4 million, which is not deductible for tax
    purposes
    &lt;/p&gt;
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    &amp;#170;
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    liabilities of $4.9 million
    &lt;/p&gt;
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          <NonNumericTextHeader>7.


    Acquisitions


    Progressive Gaming International Corp.


    In January 2009, we acquired certain operating assets of</NonNumericTextHeader>
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