GTECH Signs Three-Year Contract Extension with the Minnesota State Lottery
September 14 2004 - 8:15AM
PR Newswire (US)
GTECH Signs Three-Year Contract Extension with the Minnesota State
Lottery WEST GREENWICH, R.I., Sept. 14 /PRNewswire-FirstCall/ --
GTECH Holdings Corporation (NYSE:GTK) today announced that its
wholly-owned subsidiary, GTECH Corporation, signed a three-year
contract extension with the Minnesota State Lottery to commence on
February 10, 2008. "We are very pleased to continue our partnership
with the Minnesota State Lottery," said GTECH President and CEO W.
Bruce Turner. "Since becoming the online system provider in
February of 2003, GTECH has assisted the Lottery in achieving
online sales of $156 million, a record for their calendar year
2003. We hope to continue this momentum in the years to come."
Under the terms of the contract extension, GTECH will install and
maintain approximately 112 Expandable Dispensing System Quad
Burster(TM) (EDS-Q) 24-bin Instant Ticket Vending Machines (ITVMs),
designed to provide secure, automated distribution of instant
lottery tickets to players. The ITVMs will also allow the Lottery
and retailers to combine management reporting of both online and
instant-ticket vending activity for the first time. In addition,
GTECH will install approximately 100 Express Point Plus(TM)
terminals and will continue to provide ongoing services to the
Lottery including central system and communications network
management and maintenance; terminal maintenance; marketing
support; field service; and hotline management. Under the
extension, GTECH has also agreed to move its primary data center
operations from its existing facility in Roseville into the
Lottery's headquarters building also in Roseville. GTECH has been
the online lottery provider to the Minnesota State Lottery since
2003. In addition, through its recent acquisition of Interlott
Technologies, GTECH has been providing ITVM products and services
to the Lottery since 1997. With respect to its contract extension
with the Minnesota State Lottery, GTECH expects to generate
revenues of approximately $30 million to $34 million. 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/
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