INTERNATIONAL LOTTERY & TOTALIZATOR SYSTEMS, INC (OTC Bulletin Board: ITSI) announced today that the Company has signed a contract with Philippine Gaming Management Corporation (PGMC) for a complete on-line lottery system to replace the ILTS system installed in the Philippines in 1995.

Under the terms of the contract, ILTS will deliver a new DataTrak on-line gaming system and approximately 2,000 new Intelimark FLX terminals. In addition, ILTS will provide a number of services, including installation, training, and software support.

“ILTS is pleased to continue this long-standing relationship with PGMC,” said ILTS President and CEO Mark Michalko. “ILTS is committed to helping customers grow by providing world-class lottery solutions. The DataTrak system’s flexible open architecture will allow PGMC to take advantage of additional distribution channels in the future, and other open third-party business solutions.”
ILTS has provided on-line lottery equipment and support to PGMC since 1995. PGMC will provide and operate the system under an equipment lease agreement with the lottery operator, the Philippine Charity Sweepstakes Office. 

International Lottery & Totalizator System, Inc. provides computerized wagering systems, equipment and services to lottery and racing organizations worldwide. 
The statements in this press release which are not historical facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by forward-looking statements. These risks and uncertainties include the absence of significant contract backlog, the dependence on business from foreign customers sometimes in politically unstable regions, political and governmental decisions as to the establishment of lotteries and other wagering industries in which the Registrant’s products are marketed, fluctuations in quarter-by-quarter operating results and other factors described in the Registrant’s Annual Report on Form 10-K for the year ended April 30, 2005.