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

Thu Feb 7, 2013 8:17am EST

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

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

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  both as 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;

(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:

* IGT's stock price performance has  lagged  that of its core competitors;  
* IGT's relative valuation, as compared to its core competitors, has 
deteriorated  under current management and the incumbent board;  
* Wall Street Research estimates forecast the company to achieve "middle of the
pack" Revenue and EBITDA growth between 2011A-2014E;  
* IGT's core Gaming Operations business has seen recent net  declines  in its
installed base;  
* IGT's "Premium Leased Games" have exhibited a  declining trend in recent
performance and upcoming games seem to have underwhelmed  casino gaming
* IGT's has  failed to capitalize on its global presence  in high growth
international markets - especially in  Asia  and  Latin America;  
* IGT  failedits "Say-on-Pay" in 2012, garnering support from only 34.2% of the
company's shares; and  
* Fifty 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:

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

Elements of our plan include:

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

* Gaming Operations

* Leveraging opportunities to make yield improvements in Mega Jackpot
* 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 Segment

* Product Sales

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

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

* SG&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.  
* Adjusting R&D spending by focusing on core business and developing a new game
platform to replace the costly AVP (advanced video platform)  
* Improving COGS/Margin by rationalizing manufacturing overhead through process


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

* Mr. 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 boardroom.  
* Mr. 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 boardroom.  
* Mr. 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 boardroom.

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 statements.

SOURCE  Ader Group

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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