GTECH Signs Five-Year Contract to Provide New Interactive Lottery Software Solution, Central System, and Terminals for Customer
December 20 2004 - 7:00AM
PR Newswire (US)
GTECH Signs Five-Year Contract to Provide New Interactive Lottery
Software Solution, Central System, and Terminals for Customer in
Finland WEST GREENWICH, R.I., Dec. 20 /PRNewswire-FirstCall/ --
GTECH Holdings Corporation (NYSE:GTK) today announced that its
wholly-owned subsidiary, GTECH Global Services Corporation, has
signed a five-year contract with Veikkaus Oy, the operator of the
Finnish national lottery. The contract also includes automatic
provisions for two, two-year extensions which would extend the
contract until 2013. This contract signing follows a highly
competitive procurement process, which involved a number of
bidders. "Europe has remained one of the most progressive markets
for GTECH, and to join Veikkaus Oy in their vision of creating a
platform on which they can deliver a broad range of entertainment
and gaming content converges nicely with the proposition on which
GTECH developed the Enterprise Series (ES) solution," said GTECH
President and CEO W. Bruce Turner. "This partnership with Veikkaus
is a strong indication of the value and validation of GTECH's ES
solution package. ES will support Veikkaus' current distribution
channels and games and provide them with an integrated and open
platform for the future." During the term of the contract, GTECH
will replace the existing gaming solution with a new integrated
gaming system based on the Company's Enterprise Series(TM)
architecture. This will include an Interactive Gaming solution as
well as a new integrated online and instant lottery system, and the
latest generation of GTECH Altura(R) terminals. In addition to the
implementation of the new gaming system, GTECH will provide ongoing
services to Veikkaus over the life of the contract. Veikkaus and
GTECH will be uniquely positioned to change the gaming and
entertainment landscape, extend the reach of leading-edge
technologies and game concepts, while creating new market
penetrations in a diverse range of venues. "We are extremely
pleased that Veikkaus recognized the tremendous value afforded by
GTECH and our new software partner, HiQ International," continued
Mr. Turner. "HiQ's subsidiary, HiQ Softplan, has been collaborating
with Veikkaus in the development of the current Veikkaus
interactive solution since 1996, and we look forward to utilizing
their experience in this expanding lottery channel." HiQ
International is an information technology (IT) and management
consulting firm that focuses on high-tech solutions in the fields
of communication, software development, and simulation technology.
HiQ employs approximately 500 people in its offices in Finland,
Sweden, and Denmark. Veikkaus has been a valued GTECH customer
since 1990. With respect to its contract with Veikkaus, GTECH
expects to generate revenues of approximately $38 million to $40
million for the implementation of the new gaming system. In
addition, GTECH will generate incremental revenue related to the
ongoing software and consultancy services provided to Veikkaus in
the range of $25 million to $27 million over the five years.
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 5,400 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 of GTECH Corporation, +1-401- 392-7452 Web site:
http://www.gtech.com/
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