GTECH Acquires Operation and Management Rights of the Barbados Lottery
April 26 2005 - 9:01AM
PR Newswire (US)
GTECH Acquires Operation and Management Rights of the Barbados
Lottery Company Also Enters Into 18-Year Agreement to Become
Exclusive Central System/Services Provider and Lottery Operator for
All Online Lotteries in Barbados WEST GREENWICH, R.I., April 26
/PRNewswire-FirstCall/ -- GTECH Holdings Corporation (NYSE:GTK)
today announced that its wholly-owned subsidiary, GTECH Global
Services Corporation, has entered into an agreement to acquire the
operation and management rights of The Barbados Lottery. GTECH will
become the exclusive central system and services supplier to The
Barbados Lottery, which is now comprised of the Barbados Olympic
Association, the Barbados Cricket Association, the Barbados Turf
Club, and the National Sports Council, under an 18-year agreement
commencing at the closing, which is expected in May 2005. "We are
extremely pleased to have the opportunity to become the exclusive
central system and terminals provider for all three online lottery
license holders in Barbados," said GTECH President and CEO W. Bruce
Turner. "Under this unique agreement, GTECH will essentially become
the sole lottery operator on the island. By leveraging our existing
LILHCo central system in Austin, Texas, we are able to offer
overall reduced operating costs to The Barbados Lottery and even
greater returns for the good causes in Barbados." Presently, GTECH
is the technology and services provider for the online lottery
games operated by the Barbados Olympic Association. In addition,
GTECH's subsidiary, Leeward Islands Lottery Holding Company
(LILHCo), provides the equipment for the Barbados Cricket
Association's online lottery games. The Barbados Turf Club
currently operates its online games using another vendor's
equipment. Under the terms of the 18-year integrated services
agreement, GTECH will migrate the online games of all three
entities to GTECH's Enterprise Series(TM) solution, to be operated
out of Austin, Texas. GTECH will also provide approximately 250
Altura(R) terminals and an IP-based wireless communications system
will be installed as the interface between the retailers and the
central system. GTECH will provide ongoing services to The Barbados
Lottery including maintenance of the central system, terminals, and
communications network; retailer training; hotline management; and
field service. As the lottery operator, GTECH will also be
responsible for lottery marketing, including advertising and
promotions; draw shows; game portfolio management; and auditing.
With respect to its integrated services agreement with The Barbados
Lottery, GTECH expects to generate revenues of approximately $80
million to $100 million over the 18-year 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 5,300 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 Holdings Corporation CONTACT: Robert K. Vincent, Public
Affairs for GTECH Corporation, +1-401-392-7452 Web site:
http://www.gtech.com/
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