Gtech (NYSE:GTK)
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GTECH Signs New Six-Year Integrated Services Contract with
Pronosticos para la Asistencia Publica in Mexico
Company to Provide ES Connect(TM), 11,000 Altura(R) Terminals, and
Telecommunications Network
WEST GREENWICH, R.I., Sept. 8 /PRNewswire-FirstCall/ -- GTECH Holdings
Corporation (NYSE:GTK) today announced that its wholly-owned subsidiary, GTECH
Corporation, signed a six-year integrated services contract on September 6 with
Pronosticos para la Asistencia Publica (Pronosticos) to provide equipment and
services for a new online lottery system and associated telecommunications
network in Mexico. The new contract, expected to commence on September 5,
2005, includes a two-year extension option and is the result of a competitive
procurement.
"GTECH's ES Connect allows a lottery's gaming system to interface with Internet
Protocol (IP)-based networks and applications. By enabling their gaming system
with IP, Pronosticos will have a greater choice of network technologies and
providers, resulting in greater flexibility to support future applications,"
said GTECH President and CEO W. Bruce Turner. "By supporting IP standards,
Pronosticos will also have the capability to implement new applications and
services with faster time to market."
Under the terms of the new contract, GTECH will replace Pronosticos' existing
lottery system with new central system hardware and add the Company's ES
Connect(TM) software. ES Connect provides IP message routing, translation, and
terminal management and can be implemented on the existing lottery system to
achieve a seamless system conversion.
GTECH will also provide Pronosticos with approximately 4,800 Altura(R)
terminals and 3,200 Altura(R) LVT Plus terminals. In addition, approximately
3,000 Altura LVT terminals will be installed in new retailer locations. It is
anticipated that Pronosticos will grow from its current terminal base of 7,500
to approximately 11,000 during GTECH's fiscal year 2006.
A variety of proven, reliable, wireless and wireline telecommunications
technologies will be installed as the interface between retailers and the
central system.
GTECH will provide ongoing services to Pronosticos including installation,
operation, and maintenance of the central system; installation and maintenance
of terminals and communications network; retailer training; field services;
hotline operation; and marketing support.
GTECH has provided lottery equipment and services to Pronosticos since 1987.
With respect to its new contract with Pronosticos, GTECH expects to generate in
excess of $90 million over the six-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. 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 5,500 people in 45 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 of GTECH Corporation,
+1-401-392-7452
Web site: http://www.gtech.com/