GTECH Signs 10-Year Online, Instant, and Passive Lottery Contract in Sri Lanka
December 12 2003 - 7:00AM
PR Newswire (US)
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/
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