GTECH Notified of Virginia Lottery Intent to Award Contract for Comprehensive Instant Ticket Products, Equipment, and Related Se
18 May 2004 - 10:49PM
PR Newswire (US)
GTECH Notified of Virginia Lottery Intent to Award Contract for
Comprehensive Instant Ticket Products, Equipment, and Related
Services WEST GREENWICH, R.I., May 18 /PRNewswire-FirstCall/ --
GTECH Holdings Corporation today announced that the Company has
been notified of the intent of the Virginia Lottery to award a
seven-year contract to Oberthur Gaming Technologies Corporation
(OGT) under which GTECH will be subcontracted to provide new
Instant Ticket Vending Machines (ITVMs) and management of
warehousing and distribution of instant tickets. The contract
award, which is expected to commence in June of this year, includes
options to renew for up to three years and follows a competitive
procurement in which two other companies submitted proposals. "To
meet the Virginia Lottery's changing requirements, GTECH, in
partnership with Oberthur, provided a comprehensive and
cost-effective solution to the Lottery's instant ticket lottery
operations," said GTECH President and CEO W. Bruce Turner. "We are
committed to assisting the Lottery in its efforts to maximize
revenues for public education in Virginia." Upon execution of the
contract, GTECH will deliver 500 Expandable Dispensing System Quad
Burster(TM) (EDS-Q) ITVMs initially. The new machines will replace
a portion of the 1,500 machines already in operation. The Lottery
has the option to expand the number of ITVMs over time. GTECH has
been the online lottery terminal provider for the Virginia Lottery
since 2000, and currently provides field services for the Lottery's
Clerk-Activated Terminals(TM) (CATs), Self-Service Terminals(TM)
(SSTs), Instant-Ticket Validation devices (ITVs) and printers, and
Instant-Ticket Vending Machines (ITVMs). In addition, through its
recent acquisition of Interlott Technologies, GTECH has been
providing ITVM products and services to the Virginia Lottery since
1991. With respect to its proposed subcontract with OGT, the
Company expects to generate revenues of approximately $25 million
over the seven-year contract term. 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) the relatively large percentage of the
Company's revenues attributable to a relatively small number of the
Company's customers; (vi) the possibility of significant
fluctuation of quarterly operating results; (vii) the intensity of
competition in the lottery industry; (viii) the possibility of
substantial penalties under and/or termination of the Company's
contracts; (ix)the ability of the Company to respond to
technological change and to satisfy the future technological
demands of its customers; (x) opposition to expansion of lottery;
(xi) the Company's ability to attract and retain key employees; and
(xii) 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 5,500 people in 45
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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