GTECH Signs New Multi-Year Contract to Provide Club Keno(R) Game to Customer In Beijing
11 February 2004 - 12:15AM
PR Newswire (US)
GTECH Signs New Multi-Year Contract to Provide Club Keno(R) Game to
Customer In Beijing Company to Also Offer IP-Based ES Connect(TM)
Solution WEST GREENWICH, R.I., Feb. 10 /PRNewswire-FirstCall/ --
GTECH Holdings Corporation today announced that its wholly-owned
subsidiary, GTECH Corporation, signed a new contract to supply the
Beijing Welfare Lottery Center (BWLC) with equipment, software, and
technical services to operate a computerized keno game in Beijing.
As a result of the new multi-year contract, which is expected to
commence on April 1, 2004, BWLC also extended GTECH's original
online lottery services contract for an additional three years
through December 31, 2012. "Club Keno is based on a game that
originated in China more than 3,000 years ago and is one of the
most successful games in today's lottery industry," said GTECH
President and CEO W. Bruce Turner. "Therefore it is only fitting
for GTECH to offer BWLC the opportunity to generate additional
revenue with this exciting, fast-paced game. By offering new
products and services to existing customers, GTECH further
strengthens its position in this very important region," continued
Mr. Turner. Under the terms of the new contract, GTECH will provide
a turnkey system to BWLC, including keno equipment, monitors, and
game software for the Club Keno(R) game. The Company will also
install an additional 500 Altura(R) terminals featuring GTECH's
AlturaVision, a video display system that allows the development,
delivery, and display of text, graphics, animations, and other
multimedia objects on a display device (such as a television or LCD
monitor) located in a retail establishment. BWLC expects to
introduce Club Keno in age-controlled locations throughout Beijing
in August 2004. The number of Altura terminals for BWLC's Club Keno
game is expected to grow to 2,000 over time. In addition, GTECH
will provide BWLC with the Company's IP-based ES Connect(TM)
software. ES Connect is a highly-secure, high-volume, open
standards network interface that connects a lottery's transaction
processing engine to a multitude of sales channels and devices. It
can be implemented on an existing lottery system without the need
for a major system conversion. GTECH will provide ongoing services
to BWLC including upgrades and maintenance for the keno and lottery
central systems; software support; game design; marketing
consultation; and terminal spare parts. An alliance arrangement has
also been agreed upon whereby BWLC can become the hub operator for
neighboring jurisdictions in China. Under this arrangement, GTECH
will provide BWLC with the lottery central system hardware, network
connectivity, software licenses, and ongoing software support.
GTECH will be entitled to receive fixed pricing for the sale of the
Altura terminals and a percentage of sales as an ongoing software
license and support services fee. 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 $120
million in 2003. 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. 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 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 industry; (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 $1 billion in revenues and 5,000 people in
44 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 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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