ITunes asking me to setup as new iPad or restore

Hi
I bought my wife an iPad 2 for her birthday and it was setup on the device rather than via iTunes.
I have now connected it to iTunes, and it is asking me to restore from a previous backup (there is no previous backup) or setup as a new iPad (which we dont want to do).
Any ideas????
Lastest version of iTunes and IOS7
Many thanks in advance!

It's not in recovery mode, the iPad is working fine.
Other posts I have read say that it will not wipe it!!
Is that not the case then??

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