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GTECH Signs 10-Year Online, Instant, and Passive Lottery Contract in Sri Lanka
Company to Deploy Enterprise Series Open Architecture, Altura(R) Terminals, and
IP-Based Communications Network
WEST GREENWICH, R.I., Dec. 12 /PRNewswire-FirstCall/ -- GTECH Holdings
Corporation today announced that its wholly-owned subsidiary, GTECH Lanka,
signed a 10-year integrated services contract with the Mahapola Higher Education
Scholarship Trust Fund (MTF) to be the provider of online, instant, and passive
lottery technology and management services in Sri Lanka. The MTF is the
preeminent higher education scholarship trust fund in Sri Lanka. The contract
includes a five-year extension option and follows a competitive procurement
process that involved eight other bidders. GTECH anticipates launching the new
system in mid-2004. With respect to its contract with MTF, GTECH anticipates
generating revenues in excess of $100 million over the life of the contract.
"This is yet another example of GTECH's Enterprise Series solution being
embraced by a broad spectrum of countries around the globe," said GTECH
President and CEO W. Bruce Turner. "We look forward to putting our experience
and commitment to this new business relationship by providing MTF with a very
secure and robust open architecture platform, end-to-end use of open
architecture standards and applications, and a wide range of world-class
management services encompassing a large number of new gaming and retail
solutions."
The Honorable Ravi Karunanayake, Minister of Commerce and Consumer Affairs which
oversees MTF, said, "Diversifying into lottery is not a new concept to MTF as
our educational scholarships were implemented with support of an offline lottery
in 1980. However, the online aspect of the lottery business is unique to Sri
Lanka and will serve to strengthen MTF's ability to contribute significantly to
the educational needs of Sri Lanka's youth."
Under the terms of the agreement, GTECH will deploy the Company's Enterprise
Series architecture, featuring IP web-component technology. In addition, GTECH
initially will install approximately 1,000 Altura(R) terminals on an island-wide
IP-based communications network. The Altura offers high- performance PC
architecture and advanced software capabilities that facilitate the rapid
introduction of new games and future lottery applications. The number of
terminals is expected to grow over time.
GTECH will base its operations in Sri Lanka's capital of Colombo and will
provide turnkey lottery management services to MTF including the installation,
operation, and maintenance of the online and instant central system;
installation and maintenance of the lottery terminals; field services; marketing
support; hotline operations; and retailer selection and training.
In support of this agreement, GTECH expects to enter into a long-term joint
venture with a prominent and highly-respected Sri Lankan conglomerate, Aitken
Spence & Co. Ltd. (ASC). Together, GTECH and ASC will provide integrated
services for MTF and pursue a range of transaction processing and infrastructure
management opportunities in Sri Lanka.
"We are delighted to have this opportunity to work with GTECH in this exciting
and extremely important endeavor," said ASC Deputy Chairman and Managing
Director, J.M.S. Brito. "Mahapola offers hope to many thousands of students,
and I am delighted that ASC shall play an important part in this significant
initiative in Sri Lanka."
Proceeds from the lottery will be used to support educational scholarships in
Sri Lanka.
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 possibility of slower than expected growth or
declines in sales of lottery goods and services by the Company or the Company's
customers; (iii) exposure to foreign currency fluctuations; (iv) risks and
uncertainties inherent in doing business in foreign jurisdictions; (v) the
possibility of significant fluctuation of quarterly operating results; (vi) the
intensity of competition in the lottery industry; (vii) the possibility of
substantial penalties under and/or termination of the Company's contracts;
(viii) the ability of the Company to respond to technological change and to
satisfy the future technological demands of its customers; (ix) opposition to
expansion of lottery and gaming; and (x) the Company's ability to attract and
retain key employees.
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/