GTECH Announces Joint Venture with Veikkaus Oy
June 21 2005 - 9:15AM
PR Newswire (US)
GTECH Announces Joint Venture with Veikkaus Oy Organizations to
Collaborate in the Development of Government-Sponsored Games and
Solutions Over Emerging Interactive Channels WEST GREENWICH, R.I.,
June 21 /PRNewswire-FirstCall/ -- GTECH Holdings Corporation
(NYSE:GTK) today announced that GTECH Global Services Corporation
Limited, a wholly-owned subsidiary of GTECH Corporation, has
entered into a joint venture agreement with Veikkaus Oy, the
operator of the Finnish national lottery, to develop and market
innovative new games and solutions for the lottery and gaming
industries. The primary focus of the joint venture is the
development of government-sponsored games and solutions over
expanding interactive channels such as Internet, mobile telephony,
and interactive television, with a main emphasis on sports betting.
GTECH will hold an 81 percent equity stake in the joint venture,
with the remaining 19 percent held by Veikkaus. The joint venture
will be located in Finland, and initially staffed by Veikkaus
personnel. The joint venture agreement is expected to close and be
operational in the third quarter of this fiscal year, subject to
certain closing conditions in the agreement. "Our joint venture
with Veikkaus is another important step we are taking to enhance
our solutions and game content portfolio, and deploy it over the
widest array of channels available in the industry," said GTECH
President and CEO W. Bruce Turner. "We believe the core assets of
our two organizations can be effectively leveraged to allow us to
accelerate the development of new games and solutions by creating
an incubator setting, with the primary objective of developing
government-sponsored games and solutions over the rapidly-growing
interactive channels," continued Mr. Turner. "GTECH brings to the
table an unparalleled level of technical skills, industry
expertise, reliability, and global credibility," said Veikkaus CEO
Risto Nieminen. "This joint venture will provide Veikkaus with
enhanced game innovation, particularly for our interactive
channels. It also provides a platform for new games and solutions
that can be produced and marketed more rapidly and more effectively
for Veikkaus' core business -- delivering lottery games for Finnish
consumers." GTECH will also benefit from Veikkaus' successful track
record of developing new games and cultivating business
relationships necessary to deploy new games beyond the traditional
retailer-assisted distribution channel. Veikkaus was the first
lottery in the world to introduce Internet betting and live sports
betting, among many other innovations. "When combined with the
strength and resources that GTECH brings in the areas of research
and development, and technology and infrastructure, this joint
venture will play a powerful role in the accelerated development of
new solutions and game content required to advance GTECH's overall
objective in the gaming industry, which is serving our customers,"
said Mr. Turner. The joint venture will continue Veikkaus' long
tradition of innovation by developing new solutions and games for
Veikkaus' implementation, and for GTECH to productize and
commercialize these innovations worldwide. The joint venture will
realize revenue from GTECH's commercialization and licensing of new
games and solutions developed by the joint venture. "There is a lot
we can learn from Veikkaus about their approach to game
development, but also in terms of interactive channel experience
and, maybe most importantly, keen insights we can gain into the
European marketplace," said Mr. Turner. "And, it provides another
advanced environment for pilot testing these innovative games and
solutions." 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 $1.2 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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