Item 2.05 Costs Associated with Exit or Disposal Activities

On November 13, 2008, International Game Technology (the "Company") announced that, as part of its continued focus on achieving greater operational efficiencies and controlling expenses, it is reducing its global workforce by approximately 8% or approximately 460 positions. The Company's goal is to reduce quarterly operating costs by $20 to $25 million beginning in the second quarter of fiscal 2008. The reduction in employees is being accomplished through a combination of early retirement and involuntary employee separation arrangements. The Company will incur non-recurring cash charges related to the workforce reduction for severance and other one-time termination costs. The Company expects to recognize between $16 million and $21 million in charges related to workforce reductions during the first quarter of fiscal 2009.

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