GTECH Selected by the Virginia Lottery to Provide New Lottery Central System, Terminals, Communications Network, and Ongoing Se
May 22 2006 - 6:41PM
PR Newswire (US)
WEST GREENWICH, R.I., May 22 /PRNewswire-FirstCall/ -- GTECH
Holdings Corporation (NYSE:GTK) today announced that its
wholly-owned subsidiary, GTECH Corporation, has been selected as
the apparent successful vendor by the Virginia Lottery to provide a
new lottery central system, new terminals, and a new IP wireless
communications network, under a proposed seven-year integrated
services contract. Today's announcement follows a competitive
procurement and includes three one-year extension options. "The
Virginia Lottery has successfully managed its systems and products
that have produced outstanding results for nearly 18 years, and we
understand that maintaining the Lottery's high level of operational
quality is the cornerstone of the trust and respect upon which
their success is predicated," said GTECH President and CEO W. Bruce
Turner. "We are pleased that the Lottery has placed its confidence
in GTECH to assist them in modernizing their systems and business
management capabilities, and we look forward to this collaborative
partnership in the years to come." Under the terms of the proposed
contract, GTECH will convert the Lottery's existing online central
system to the GTECH Enterprise Series(TM) solution. In addition,
GTECH will replace the Lottery's existing terminal base and install
up to 5,250 Altura(R) terminals. The Company will also install a
new IP wireless communications network. GTECH will also provide the
Virginia Lottery with 225 GamePoint(TM) machines, the Company's
all-in-one instant and online lottery self-service solution.
Additionally, 250 Express Point Plus(TM) machines will be
installed, which facilitate convenient player-activated
identification of winning tickets. GTECH will provide ongoing
services to the Virginia Lottery including installation, operation,
and maintenance of the online central system, terminals, and
communications network; on-site marketing support; in-state hotline
management; and field service. "This partnership is exciting for
the Virginia Lottery, our retailers, and players," said Virginia
Lottery Interim Executive Director Donna M. VanCleave. "The
Virginia Lottery has successfully operated it own gaming systems
since 1988 when we began selling tickets. This new strategic
business model will leverage technology to spur profitability for
our retail partners, better serve our players, and ultimately,
generate more revenue for Virginia's public schools." GTECH is the
online lottery terminal provider for the Virginia Lottery and
currently provides field service for the Lottery's Clerk-Activated
Terminals(TM) (CATs), self-service terminals, Instant-Ticket
Validation devices (ITVs), printers, and Instant Ticket Vending
Machines (ITVMs). As a subcontractor to the Lottery's instant
ticket vendor, GTECH is also responsible for the warehousing and
distribution of instant tickets in addition to supplying ITVMs.
Since its inception in 1988, the Virginia Lottery has generated
revenues of more than $15 billion. The Lottery has set sales
records for the past seven years with overall sales surpassing
$1.33 billion in fiscal year 2005. All profits from the Virginia
Lottery go to K-12 public school education in the Commonwealth. In
fiscal year 2005, the Lottery turned over more than $423 million
for Virginia's public schools, representing about 10 percent of
state funding for public education in Virginia. 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 is a
leading gaming technology and services company. With more than $1.3
billion in annual revenues and 5,300 people in over 50 countries,
GTECH provides integrated technology, creative content, and
business services to effectively manage and grow today's evolving
gaming markets. In targeted emerging economies, GTECH also
leverages its operational presence and infrastructure to supply
commercial transaction processing services. For more information
about the Company, please visit GTECH's website at
http://www.gtech.com/. 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/
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