Gtech (NYSE:GTK)
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GTECH Signs Agreement with Lotterie-Treuhandgesellschaft mbH
Thuringen for New Online/Instant Lottery System and Terminals
WEST GREENWICH, R.I., Dec. 21 /PRNewswire-FirstCall/ -- GTECH Holdings
Corporation (NYSE:GTK) today announced that its wholly-owned subsidiary, GTECH
Corporation, signed an agreement to provide a new online and instant lottery
central system, point-of-sale (POS) terminals, and ongoing services to
Lotterie-Treuhandgesellschaft mbH Thuringen (Thuringen Lottery) in Germany.
"We are excited about extending our eight years of successful cooperation with
the Thuringen Lottery, and look forward to working with them to expand and grow
their business," said GTECH President and CEO W. Bruce Turner. "With
Enterprise Series, GTECH will offer the Thuringen Lottery a system that fully
integrates lottery games and related administrative systems and services, to
meet the requirements of the Lottery, now and in the future. As the German
states continue to face budget constraints, Enterprise Series will allow the
Thuringen Lottery to run its business more efficiently and with greater
flexibility."
Under the terms of the product sale agreement, GTECH will replace the Lottery's
existing GTECH ProSys(R) system with the Company's latest system solution,
Enterprise Series(TM) (ES), featuring Internet Protocol (IP) and
standards-based open architecture. As part of the ES platform, the Lottery
will also receive ES Connect B2B(TM). ES Connect B2B will enable the Thuringen
Lottery system to implement new channels of distribution for its online
products by providing a defined messaging interface. The new interface will be
accessed by local content providers, such as Internet or mobile, to offer
lottery products to their expansive customer bases.
In addition to ES Connect B2B, GTECH will offer ES Connect(TM) which allows the
lottery system to support IP networks and IP lottery terminals. Approximately
820 GTECH Altura(R) POS terminals with AccuTherm(R) Supreme printers will be
installed in addition to Customer Display Units (CDUs). The Lottery will also
receive the Company's GWARE(TM) product, a Lottery Business Report tool that
stores, searches, organizes, and displays gaming activity data collected at a
central lottery site. This data encompasses transactions performed over
jurisdiction areas, sales data and information on agents, terminals, cities and
regions.
GTECH will provide ongoing services to the Thuringen Lottery including central
system and terminal maintenance, retailer training, and field service.
GTECH has provided the Thuringen Lottery with products and services since 1996.
With respect to its product sale agreement with the Lottery, GTECH expects to
generate approximately $13 million. In addition, GTECH will receive
approximately $7 million under a software and hardware maintenance contract for
the terminals and central system over seven years.
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 more than 5,400 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 Corporation
CONTACT: Robert K. Vincent, Public Affairs of GTECH Corporation,
+1-401-392-7452
Web site: http://www.gtech.com/