GTECH Signs Five-Year Contract Extension With Customer in Luxembourg
06 April 2004 - 11:55PM
PR Newswire (US)
GTECH Signs Five-Year Contract Extension With Customer in
Luxembourg WEST GREENWICH, R.I., April 6 /PRNewswire-FirstCall/ --
GTECH Holdings Corporation today announced that its wholly-owned
subsidiary, GTECH Corporation, has signed a five-year contract
extension with Oeuvre Nationale de Secours Grande-Duchesse
Charlotte, the operator of Loterie Nationale of Luxembourg, to
provide new lottery terminals, products, and ongoing services
through October 2012. With respect to its contract extension, GTECH
expects to generate revenues of approximately $23 million to $25
million. Commenting on the extension, GTECH President and CEO W.
Bruce Turner said, "Loterie Nationale has been a valued customer of
ours, and we are eager to use this opportunity to strengthen our
relationship with the Lottery and its retailers in the years to
come. When GTECH became the online lottery supplier in 2001,
Loterie Nationale generated $21 million in total sales from its
instant ticket business," continued Mr. Turner. "In 2002, with the
addition of keno, sales reached $35 million. Last year, total net
sales peaked at $61 million. We look forward to continuing our
successful partnership." Under the terms of the extension, GTECH
will provide approximately 600 Altura(R) terminals with
AccuTherm(R) Supreme printers; 425 Accuview(R) Customer Display
Units (CDUs); marketing and software services, including game
design and development; and will relocate its project data center
operations from Brussels, Belgium to Luxembourg. GTECH has been
providing lottery services to Loterie Nationale since June 2001,
when, in collaboration with Loterie Nationale, instants were
brought online, and later that year, a five-minute keno game was
successfully launched. GTECH will work with Loterie Nationale in
developing new games, including participation in the pan-European
game, EuroMillions. 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 thelottery 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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