Gtech (NYSE:GTK)
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GTECH Receives Notice of Intent to Award Five-Year Contract Providing Instant
Ticket Dispensing Machines (ITDMs) for the Illinois Lottery
WEST GREENWICH, R.I., March 10 /PRNewswire-FirstCall/ -- GTECH Holdings
Corporation today announced that its wholly-owned subsidiary, GTECH
Corporation, has received a notice of intent to award a contract providing the
Illinois Lottery with Instant Ticket Dispensing Machines (ITDMs) and ongoing
maintenance and support services. The proposed five-year contract follows a
competitive procurement and includes a three-year extension option.
"We are pleased the Illinois Lottery has chosen GTECH as its ITDM network
provider. This also represents our first win with the combined GTECH/Interlott
brand and technology," said GTECH President and CEO W. Bruce Turner. "By
providing connectivity to the ITDMs, we will make it possible for the Illinois
Lottery and its retailers to combine management reporting of both online and
instant-ticket-vending activity for the first time. As a result, they will have
a more comprehensive and accurate picture of their total lottery business."
Upon successful completion of negotiations with the Illinois Department of
Revenue, GTECH will provide the Lottery with up to 2,000 Expandable Dispensing
System (EDS-Q) ITDMs. The machines are expected to be installed by the end of
2005.
"The ITDMs in Illinois will assist the Lottery in providing secure, automated
distribution of instant lottery tickets to players and generate revenue that
goes directly to public education in Illinois," continued Mr. Turner. With
annual sales of $1.59 billion, the Lottery generates approximately $540 million
annually for Illinois public education.
The Illinois Lottery has been a valued GTECH customer since 1989. With respect
to its contract resulting from negotiations with the Illinois Department of
Revenue, the Company expects to generate revenues of approximately $20 million
to $25 million over the five-year contract 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. 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 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 industry; (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 $1 billion in
revenues and 5,000 people in 44 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/