GTECH Signs Two-Year Online/Instant System Contract Extension with the Ohio Lottery
June 28 2005 - 10:00AM
PR Newswire (US)
GTECH Signs Two-Year Online/Instant System Contract Extension with
the Ohio Lottery Company Also Signs Two-Year Extension for
Additional Instant Ticket Vending Machines WEST GREENWICH, R.I.,
June 28 /PRNewswire-FirstCall/ -- GTECH Holdings Corporation
(NYSE:GTK) today announced that its wholly-owned subsidiary, GTECH
Corporation, has signed a two-year contract extension with the Ohio
Lottery Commission to continue its role as the provider of an
online/instant lottery central system and related services. In
addition, the Lottery signed a separate two-year extension with
GTECH for the lease of Instant Ticket Vending Machines (ITVMs).
Both extensions will commence on July 1, 2005, and can be extended
for an additional two years at the option of the Lottery. "The Ohio
Lottery is a highly-valued customer and we are pleased at the
opportunity to continue working with them," said GTECH President
and CEO W. Bruce Turner. "These contract extensions illustrate the
Lottery's confidence in GTECH's capabilities and are a testament to
the success of our 20-year business partnership." Under the terms
of the online/instant system contract extension, GTECH will
continue providing the Lottery with the operation and maintenance
of the central system, including instant ticket validation;
maintenance of terminals; marketing support; hotline management;
and field service. Under the ITVM extension, GTECH will continue to
supply the Lottery with 1,500 ITVMs through June 30, 2007. In
addition, the Lottery will receive a minimum of 50 additional
ITVMs, which are expected to be deployed by September 2005. GTECH
has provided lottery products and services to the Ohio Lottery
since 1985. With respect to both contract extensions with the
Lottery, the Company expects to generate approximately $50 million
over the two-year period. The Ohio Lottery's most recent annual
sales were $2.1 billion. Proceeds from the Lottery are earmarked
for public education. 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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