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GTECH Acquires Operation and Management Rights of the Barbados
Lottery
Company Also Enters Into 18-Year Agreement to Become Exclusive Central
System/Services Provider and Lottery Operator for All Online Lotteries in
Barbados
WEST GREENWICH, R.I., April 26 /PRNewswire-FirstCall/ -- GTECH Holdings
Corporation (NYSE:GTK) today announced that its wholly-owned subsidiary, GTECH
Global Services Corporation, has entered into an agreement to acquire the
operation and management rights of The Barbados Lottery. GTECH will become the
exclusive central system and services supplier to The Barbados Lottery, which
is now comprised of the Barbados Olympic Association, the Barbados Cricket
Association, the Barbados Turf Club, and the National Sports Council, under an
18-year agreement commencing at the closing, which is expected in May 2005.
"We are extremely pleased to have the opportunity to become the exclusive
central system and terminals provider for all three online lottery license
holders in Barbados," said GTECH President and CEO W. Bruce Turner. "Under
this unique agreement, GTECH will essentially become the sole lottery operator
on the island. By leveraging our existing LILHCo central system in Austin,
Texas, we are able to offer overall reduced operating costs to The Barbados
Lottery and even greater returns for the good causes in Barbados."
Presently, GTECH is the technology and services provider for the online lottery
games operated by the Barbados Olympic Association. In addition, GTECH's
subsidiary, Leeward Islands Lottery Holding Company (LILHCo), provides the
equipment for the Barbados Cricket Association's online lottery games. The
Barbados Turf Club currently operates its online games using another vendor's
equipment. Under the terms of the 18-year integrated services agreement, GTECH
will migrate the online games of all three entities to GTECH's Enterprise
Series(TM) solution, to be operated out of Austin, Texas. GTECH will also
provide approximately 250 Altura(R) terminals and an IP-based wireless
communications system will be installed as the interface between the retailers
and the central system.
GTECH will provide ongoing services to The Barbados Lottery including
maintenance of the central system, terminals, and communications network;
retailer training; hotline management; and field service. As the lottery
operator, GTECH will also be responsible for lottery marketing, including
advertising and promotions; draw shows; game portfolio management; and
auditing.
With respect to its integrated services agreement with The Barbados Lottery,
GTECH expects to generate revenues of approximately $80 million to $100 million
over the 18-year term.
Certain statements contained in this press release are forward looking
statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. The Company identifies
forward looking statements by words such as "may," "will," "should," "could,"
"expect," "plan," "anticipate," "intend," "believe," "estimate," "continue," or
similar words that refer to the future. Such statements include, without
limitation, statements relating to the prospects and financial outlook for the
Company, which reflect management assumptions regarding: (i) the future
prospects for and stability of the lottery industry and other businesses in
which the Company is engaged or expects to be engaged, (ii) the future
operating and financial performance of the Company (including, without
limitation, expected future growth in revenues, profit margins and earnings per
share), and (iii) the ability of the Company to retain existing business and to
obtain and retain new business. Such forward looking statements reflect
management's assessment based on information currently available, but are not
guarantees and are subject to risks and uncertainties that could cause actual
results to differ materially from those contemplated in the forward looking
statements.
These risks and uncertainties include, but are not limited to, those set forth
above, in the Company's subsequent press releases and on reports by the Company
on Forms 10-K, 10-Q and 8-K, and other reports and filings with the Securities
and Exchange Commission, as well as risks and uncertainties respecting: (i)
the potential impact of extensive and evolving government regulations upon the
Company's business; (ii) the ability of the Company to continue to retain and
extend its existing contracts and win new contracts; (iii) the possibility of
slower than expected growth or declines in sales of lottery and gaming goods
and services by the Company or the Company's customers; (iv) exposure to
foreign currency fluctuations; (v) risks and uncertainties inherent in doing
business in foreign jurisdictions; (vi) the relatively large percentage of the
Company's revenues attributable to a relatively small number of the Company's
customers; (vii) the possibility of significant fluctuation of quarterly
operating results; (viii) the intensity of competition in the lottery and
gaming industries; (ix) the possibility of substantial penalties under and/or
termination of the Company's contracts; (x) the ability of the Company to
respond to technological change and to satisfy the future technological demands
of its customers; (xi) opposition to expansion of lottery and gaming; (xii) the
Company's ability to attract and retain key employees; and (xiii) the
possibility of adverse determinations in pending legal proceedings.
GTECH, a leading global information technology company with over $1 billion in
revenues and 5,300 people in over 50 countries, provides software, networks,
and professional services that power high-performance, transaction processing
solutions. The Company's core market is the lottery industry, with a growing
presence in commercial gaming technology and financial services transaction
processing. For more information about the Company, please visit GTECH's
website at http://www.gtech.com/.
Contact: Robert K. Vincent
Public Affairs
GTECH Corporation
401-392-7452
DATASOURCE: GTECH Holdings Corporation
CONTACT: Robert K. Vincent, Public Affairs for GTECH Corporation,
+1-401-392-7452
Web site: http://www.gtech.com/