Ader Group Sends Letter To IGT Stockholders Highlighting Customer Concerns With IGT

  Ader Group Sends Letter To IGT Stockholders Highlighting Customer Concerns
                                   With IGT

Urges Shareholders to Vote FOR the Ader Group's Highly-Qualified,
Forward-Looking Nominees on the GOLD Proxy Card Today

PR Newswire

NEW YORK, Feb. 7, 2013

NEW YORK, Feb. 7, 2013 /PRNewswire/ --The Ader Group today announced that it
is mailing a letter to stockholders of International Game Technology (NYSE:

The letter highlighted a number of points, including:

  oSteve Wynn's concerns about IGT's recent performance and actions;
  oKey issues raised within the Ader Group's recently released detailed
    presentation on IGT;
  oThe Ader Group's plan for creating value for ALL IGT stockholders; and
  oThe capabilities of the Ader Group's three highly-qualified,
    forward-looking nominees.

The Ader Group is urging shareholders to vote the GOLD proxy card to elect its
three highly-qualified, forward-looking nominees, Raymond J. Brooks, Jr.,
Charles N. Mathewson and Daniel B. Silvers, at IGT's upcoming annual meeting
scheduled for March 5, 2013.

The letter is available by visiting and the text follows:

"I have known Chuck Mathewson bothas a business man and as a friend for over
30 years. My various companies have done business with him during his tenure
as Chairman of IGT,and we have benefitted from his expertise and the
leadership he brought to the position.I have also, during all of those
years,had the opportunity to discuss a wide range of business opportunities
and decisions with him and have steadily increased my respect for his maturity
and judgment. He is a man of wide perspective and vision.

People who worked for him held him in the highest regard, as did every major
company in the gaming industry with whom he dealt so successfully. It was
during Chuck's time at IGT that the company came into dominance as the
principal supplier of slot machines in the United States. Since his departure
the company has seemed to have lost that edge.

I am personally saddened by what appears to be a paid professional attempt to
smear him. I'm left with the impression that such an effort is motivated by
IGT's current management's attempt to distract shareholder attention from
current performance."

— Stephen A. Wynn
Chairman and Chief Executive Officer
Wynn Resorts, Limited
February 4, 2013


February 7, 2013

Dear Fellow IGT Stockholder:

At the upcoming annual meeting, IGT shareholders will make an important
decision regarding the value of their investment: whether to (1) add
shareholder representation and a fresh perspective focused on shareholder
value creation to the IGT Board of Directors or (2) continue with the same
board that has overseen a significant decline in shareholder value in recent
years. We urge you to consider the facts carefully.

Since last September, we have sought a dialogue with the IGT board regarding
our concerns with IGT's operating and share price performance and how we
believe we can help create value for ALL shareholders. We have had no
confidence that our views—which we believe are strongly aligned with all
shareholders' interests—have been considered, and we are determined to seek
the support of our fellow shareholders in order to gain better representation
for all of us in the boardroom. Unfortunately, in response to our efforts,
our Board and management have resorted to a series of cheap personal attacks
designed, in our view, simply to distract shareholders from the real issue:
Could our Board benefit from fresh perspectives and more relevant experience?

We believe the answer is a clear YES, and that the three Ader nominees will
help rectify the core concerns which we believe have led to value destruction
at IGT:

(i)a lack of focus on the core slot machine and systems business that we
believe generated IGT's historic success and which we believe will be the
foundation for its future growth;

(ii)a lack of casino gaming industry experience in executive management
ranks; and

(iii)poor capital allocation decisions, highlighted by a series of costly
non-strategic acquisitions.

We urge all IGT shareholders to vote the GOLD proxy card today to ensure new,
shareholder-focused voices in the IGT boardroom.


We recently released a detailed presentation which articulates the basis for
our strong beliefs concerning the value destruction which has occurred under
the watch of the management and board of IGT and our plan to halt the
deterioration in IGT's stock price and to increase shareholder value. We
encourage you to review the presentation (available at under
the "Filings & Presentations" tab), and consider the following:

  oIGT's stock price performance has lagged that of its core competitors;
  oIGT's relative valuation, as compared to its core competitors, has
    deteriorated under current management and the incumbent board;
  oWall Street Research estimates forecast the company to achieve "middle of
    the pack" Revenue and EBITDA growth between 2011A-2014E;
  oIGT's core Gaming Operations business has seen recent net declines in its
    installed base;
  oIGT's "Premium Leased Games" have exhibited a declining trend in recent
    performance and upcoming games seem to have underwhelmed casino gaming
  oIGT's has failed to capitalize on its global presence in high growth
    international markets – especially in Asia and Latin America;
  oIGT failed its "Say-on-Pay" in 2012, garnering support from only 34.2% of
    the company's shares; and
  oFifty percent of our current Board has preexisting relationships due to
    directors' previous service at other companies. We question whether the
    previous professional ties between our CEO and three of our other
    directors jeopardize the objective level of boardroom discussion that we
    as shareholders should expect.

We believe the above factors make a strong case for why change is needed at
IGT, and we believe you should hold our Board accountable.


The Ader nominees have a forward-looking plan to refocus IGT on its core slot
machine and systems business in order to increase shareholder value. As
detailed in our presentation, we believe that our plan could create
incremental annual EBITDA of $160-200 million with an associated upfront
investment of $125-150 million.

Our nominees would seek to implement our plan as follows:

  oRe-engage with IGT's customers to improve their confidence in the company;
  oRefocus internal efforts on the company's core slot machine and systems
  oReevaluate policies which we believe have alienated IGT from its
    front-line employees in its core business; and
  oInitiate a strategic review to improve the implementation of the company's
    social gaming effort.

Elements of our plan include:

  oRevenue Enhancement Opportunities – $125-150 million of potential EBITDA
    Opportunity (with an associated capital spend of $60-75 million)

       oGaming Operations

            +Leveraging opportunities to make yield improvements in Mega
              Jackpot Progressives
            +Improving Gaming Operations Mix and Market Share by refocusing
              on the highly profitable wide-area progressive business
            +Improving efforts in International Markets–Focus on
              higher-growth Asian and Latin American markets
            +Expanding into fast-growing Asian-centric Electronic Table Games

       oProduct Sales

            +Positioning IGT for Domestic Replacement Cycle Uptick–Seek to
              improve anemic Ship Share
            +Pursuing significant upside potential in Asian and Latin
              American product sales

  oExpense Initiatives – $35-50 million of potential EBITDA Opportunity (with
    an associated capital spend of $60-75 million)

       oSG&A Opportunities – Economizing on Flight Operations (IGT recently
         purchased a Gulfstream V that we believe is unnecessary, as there are
         more cost-effective ways to conduct necessary private air travel) and
         recalibrating bloated corporate Legal and Internal Sales staffing.
       oAdjusting R&D spending by focusing on core business and developing a
         new game platform to replace the costly AVP (advanced video platform)
       oImproving COGS/Margin by rationalizing manufacturing overhead through
         process improvement


We are convinced that our highly-qualified, independent, forward-looking
nominees are in the best position to look out for your interests:

  oMr. Mathewson offers his fellow shareholders a unique blend of experience
    and independence. He has garnered decades of industry expertise,
    including approximately 17 years at IGT – during which time your company's
    stock price increased by 25,481% on a split-adjusted basis. At the same
    time, he now also provides the clarity of a broader, more objective
    perspective, having not served as an IGT employee or director since his
    retirement in 2003. He is not afraid of stating the hard facts in the
  oMr. Silvers brings to the boardroom the benefit of his seventeen years of
    analytical experience in the casino gaming industry and Nevada market, as
    well as hands on work with many IGT customers and competitors in the core
    slot machine and systems business. He also has extensive financial
    markets experience which we believe is currently underrepresented in the
  oMr. Brooks also provides extensive capital markets experience,
    particularly in investing in distressed companies and debt, and we believe
    his financially disciplined approach will serve investors well in the

We strongly urge you to seize the opportunity our nominees offer for
meaningful change in the IGT boardroom. Please vote FOR the Ader slate TODAY
– by using the enclosed GOLD proxy card to vote by telephone, by Internet or
by signing, dating and returning the GOLD proxy card in the postage-paid
envelope provided.

Thank you for your support,

Jason N. Ader

About Ader Investment Management LP
Ader Investment Management LP is a Delaware limited partnership that was
founded in 2003. Ader Investment Management LP is an SEC-registered
investment adviser with its principal place of business located in New York,
New York. Ader Investment Management LP began conducting business in 2003,
under the name of Hayground Cove Associates LP. In June 2011, Hayground Cove
Associates LP changed its name to Ader Investment Management LP. Mr. Jason
Ader is the sole principal of the firm, and is also the managing member and
sole principal of the firm's general partner, Ader Fund Management LLC.

The principal investment advisory business of Ader Investment Management LP is
the management of investment portfolios consisting primarily of equity
securities on behalf of certain private funds and separately managed accounts.

Important Information
The Ader Group (whose members are identified below) has nominated Raymond J.
Brooks, Jr., Charles N. Mathewson and Daniel B. Silvers (the "Ader Nominees")
as nominees to the board of directors of International Game Technology (the
"Company") and is soliciting votes for the election of the Ader Nominees as
members of the board. The Ader Group has sent a definitive proxy statement,
GOLD proxy card and related proxy materials to stockholders of the Company
seeking their support of the Ader Nominees at the Company's 2013 Annual
Meeting of Stockholders. Stockholders are urged to read the definitive proxy
statement and GOLD proxy card because they contain important information about
the Ader Group, the Ader Nominees, the Company and related matters.
Stockholders may obtain a free copy of the definitive proxy statement and GOLD
proxy card and other documents filed by the Ader Group with the Securities and
Exchange Commission ("SEC") at the SEC's web site at The
definitive proxy statement and other related documents filed by the Ader Group
with the SEC may also be obtained free of charge from the Ader Group.

The Ader Group consists of the following persons: Ader Investment Management
LP, Ader Long/Short Fund LP, Doha Partners I LP, Ader Fund Management LLC,
Ader Investment Management LLC, Jason N. Ader, Daniel B. Silvers, Andrew P.
Nelson and Laura T. Conover-Ferchak. The members of the Ader Group and the
Ader Nominees are participants in the solicitation from the Company's
stockholders of proxies in favor of the Ader Nominees. Such participants may
have interests in the solicitation, including as a result of holding shares of
the Company's common stock. Information regarding the participants and their
interests may be found in the definitive proxy statement of the Ader Group,
filed with the SEC on January 25, 2013 and first disseminated to stockholders
on or about January 28, 2013.

Certain information contained herein constitutes "forward-looking statements,"
which can be identified by the use of forward-looking terminology such as
"may," "will," "seek," "should," "expect," "anticipate," "project,"
"estimate," "intend," "continue" or "believe" or the negatives thereof or
other variations thereon or comparable terminology. Such statements are not
guarantees of future performance or activities. Due to various risks and
uncertainties, actual events or results or actual performance may differ
materially from those reflected or contemplated in such forward-looking

SOURCE Ader Group

Contact: Jason N. Ader, Ader Investment Management LP, +1-212-445-7800; or
Jennifer Shotwell, or Scott Winter, or Jonathan Salzberger, all of Innisfree
M&A Incorporated, +1-212-750-5833; or Rob Ford, of 5W, +1-212-999-5585,
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