GTK Gtech

GTECH Announces Development with Customer in Mexico Pronosticos Ends Procurement for New Online Lottery Contract WEST GREENWICH, R.I., April 30 /PRNewswire-FirstCall/ -- GTECH Holdings Corporation today announced that its wholly-owned subsidiary, GTECH Corporation, has been notified that the Company's selection as the apparent successful vendor to provide equipment and services for a new online lottery system and associated telecommunications network in Mexico to Pronosticos para la Asistencia Publica (Pronosticos) has been revoked. As part of a ruling by Secretaria de la Funcion Publica (Mexican Comptroller Ministry) on a protest filed by unsuccessful competitors, GTECH's bid was declared non-compliant and disqualified. Subsequently, Pronosticos announced that it has disqualified the sole remaining bidder as also being non-compliant and has formally ended the procurement. In making the announcement, GTECH President and CEO W. Bruce Turner said, "It is our belief that GTECH submitted a fully compliant bid to Pronosticos that is in the best interest of the lottery. We intend to pursue all appropriate avenues available to us to contest the Comptroller's decision in this matter. We have been advised that we have very strong grounds to challenge this decision." GTECH's bid was disqualified because it was determined that a section of the proposal concerning the methodology for the calculation of revenues, in the event that the government decided to apply a Value Added Tax to lottery tickets, was deemed to be conditional in nature and therefore not compliant with the provisions of the Request For Proposals. The decision by the Comptroller can be directly challenged. Pronosticos had previously determined that GTECH's proposal was technologically compliant and over the six year life of the contract provided a US$25 million savings over its nearest competitor. 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 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 5,400 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 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 CONTACT: Robert K. Vincent, Public Affairs, GTECH Corporation, +1-401-392-7452 Web site: http://www.gtech.com/

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