GTK Gtech

GTECH Selected by the Multi-State Lottery Association (MUSL) to Supply the First Ever Multi-Vendor, Multi-State Video Lottery Wide Area Progressive (WAP) Solution Company Expands its Video Lottery System Offering into Two New Jurisdictions; Broadens Exposure of GTECH's Unique Progressive Jackpot Solution WEST GREENWICH, R.I., Dec. 21 /PRNewswire-FirstCall/ -- GTECH Holdings Corporation (NYSE:GTK) today announced that its wholly-owned subsidiary, GTECH Corporation, was selected by the Multi-State Lottery Association (MUSL) to supply equipment, software, services, and communications network for the first ever multi-vendor, multi-state video lottery Wide Area Progressive (WAP) solution. This decision by MUSL is the result of a competitive procurement involving four other bidders. "GTECH understands MUSL's desire to enhance its video lottery program with the addition of Wide Area Progressive. The addition of larger prizes will increase player excitement, resulting in greater player satisfaction and increased sales," said GTECH President and CEO W. Bruce Turner. "Through our proven video lottery solution, GTECH can provide MUSL with a progressive system that will help maximize the net proceeds from video lottery sales, while offering the highest level of integrity, reliability, security, and system flexibility to meet the evolving needs of MUSL." GTECH's unique and patent pending multi-vendor concept allows video lottery terminals (VLTs) from multiple vendors to be linked in a single progressive game, and affords MUSL the greatest flexibility in providing players with their favorite games within a progressive environment. Upon successful completion of a four-year contract with MUSL, GTECH will provide MUSL with the Company's Enterprise Series(TM) Video central system solution, which is currently operating in a multi-venue, multi-vendor framework today in the State of Rhode Island. The three MUSL jurisdictions to initially participate in the WAP are Rhode Island, Delaware, and West Virginia, where the lotteries in each of these jurisdictions currently regulate the operation of the VLTs installed at the nine racinos located in these states. All VLTs involved in the WAP network will participate on a percentage of net machine income, beginning with approximately 250 VLTs in the three jurisdictions and growing over time. Enterprise Series Video is a comprehensive centralized software system for administering WAPs and video lottery networks. It provides downloading, security, redundancy, event logging, and database collection of all gaming activity in a multi-vendor environment. ES Video accumulates jackpot information from each VLT attached to the progressives, updates the signs, and provides notification of winners. With respect to its proposed participation arrangement with MUSL, GTECH expects to generate revenues of approximately $5 million. MUSL is a non-profit, government-benefit association owned and operated by its member lotteries. Each of the 30 MUSL members offers one or more of the games administered by MUSL. All profits are retained by the individual lotteries and are used to fund projects approved by the legislature authorizing each lottery. 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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