GTECH Signs Contract Extension in Beijing for New Lottery System, Terminals, and Ongoing Software Licensing and Support
11 May 2006 - 12:05AM
PR Newswire (US)
WEST GREENWICH, R.I., May 10 /PRNewswire-FirstCall/ -- GTECH
Holdings Corporation (NYSE:GTK) today announced that its
wholly-owned subsidiaries, GTECH Corporation and GTECH Global
Services Corporation Ltd., signed a three-year contract extension
to supply the Beijing Welfare Lottery Center (BWLC) with a new
online lottery central system, new lottery terminals, and ongoing
software licensing and support. The contract extension runs through
December 31, 2015, with three one-year extensions beyond that date.
"We believe the decision by BWLC to continue its partnership with
GTECH is a tribute to our commitment to providing quality products
and services," said GTECH President and CEO W. Bruce Turner. "We
are eager to use this opportunity to further strengthen our
relationship with the lottery and their retailers over the next
several years, and we look forward to continuing the growth and
progress we have experienced since BWLC's startup in 2000." Under
the terms of the contract extension, GTECH will replace BWLC's
existing lottery equipment with GTECH's Enterprise Series(TM)
solution and 1,500 Altura(R) terminals. GTECH will continue to
provide ongoing services to BWLC including upgrades and maintenance
for its keno and lottery central systems; software licensing and
support; game design; marketing consultation; and terminal spare
parts and additional terminals as determined by BWLC. GTECH will
receive a percentage of sales as an ongoing software license and
support services fee. "It is also important to note that an
alliance arrangement whereby BWLC can become the hub lottery/keno
operator for neighboring jurisdictions in China remains in place,"
continued Mr. Turner. "To date, GTECH has added one keno
jurisdiction under this arrangement, Shenzhen, in October 2005."
GTECH has provided lottery products and services to BWLC since its
inception in 2000. Since that time, BWLC's sales have grown
year-over-year reaching $255 million in 2005. Proceeds generated by
the BWLC support various welfare funds, with an emphasis on
orphanages and elderly care. 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 is a leading gaming technology and
services company. With more than $1.3 billion in annual revenues
and 5,300 people in over 50 countries, GTECH provides integrated
technology, creative content, and business services to effectively
manage and grow today's evolving gaming markets. In targeted
emerging economies, GTECH also leverages its operational presence
and infrastructure to supply commercial transaction processing
services. 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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