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GTECH Named Apparent Successful Vendor for Online Lottery Contract in Tennessee
WEST GREENWICH, R.I., Nov. 21 /PRNewswire-FirstCall/ -- GTECH Holdings
Corporation today announced that its wholly-owned subsidiary, GTECH
Corporation, was named the apparent successful vendor to provide an online
lottery system, lottery terminals, and related communications network to the
Tennessee Education Lottery Corporation (TELC). The seven-year integrated
services contract is expected to commence at startup and follows a competitive
procurement process.
"GTECH is committed to the growth of new customers in new markets," said GTECH
President and CEO W. Bruce Turner. "We are grateful for the opportunity to
provide the TELC with a state-of-the-art online lottery solution and an IP-
based wireless communications network. GTECH's Enterprise Series transaction
processing solution will not only allow the TELC to remain flexible and grow at
their own pace, but it also gives them the ability to integrate best-in- class
third-party applications.
We appreciate the desire of the TELC to begin generating revenues for college
scholarships as soon as possible," continued Mr. Turner. "With the experienced
team of lottery professionals that CEO Rebecca Paul has been able to assemble,
we are confident that the initiation of the Tennessee Education Lottery will
proceed flawlessly and at a record-setting pace."
Upon successful completion of final contract negotiations, GTECH will provide
the TELC with the Company's Enterprise Series architecture, featuring Internet
Protocol (IP) web-component technology. Approximately 4,000 PC-based Altura(R)
terminals will be installed initially, with the capability for the TELC to grow
to 10,000 terminals over the contract period. Of the total terminals, up to
3,000 Altura LVT terminals for retailers requiring a more compact terminal will
be provided.
GTECH will provide the TELC with ongoing services including system design,
delivery, and ongoing support operations; terminal installation and maintenance;
retailer training; marketing support; field service; hotline management; and
telecommunications network installation, management, and maintenance.
With respect to its contract resulting from negotiations, GTECH expects to
generate revenues of approximately $120 million to $130 million over the life of
the contract. Proceeds from the TELC will be used to support the Tennessee Hope
Scholarship Program.
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. Such statements include,
without limitation, statements relating to the prospects and financial outlook
for the Company, which reflect management assumptions regarding the future
prospects for and stability of the TELC's operations. 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
Company's and the TELC's inability to agree upon and enter into a definitive
agreement; (ii) the potential impact of extensive and evolving government
regulations upon the Company's business; (iii) the possibility of slower than
expected growth or declines in sales of lottery goods and services by the
Company's new customers; (iv) the intensity of competition in the lottery
industry; (v) the possibility of substantial penalties under and/or termination
of the Company's contracts; (vi) the ability of the Company to respond to
technological change and to satisfy the future technological demands of its
customers; (vii) opposition to expansion of lottery and gaming; (viii) the
possibility of legal protests of the award.
GTECH, a leading global information technology company with $1 billion in
revenues and 4,900 people in 43 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 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 of GTECH Corporation, +1-401-
392-7452
Web site: http://www.gtech.com/