LOXLEY GTECH Technology Co. Ltd. (LGT) Signs Agreement to Provide Equipment and Services for National Online Lottery in Thailand
August 02 2005 - 9:55AM
PR Newswire (US)
WEST GREENWICH, R.I., Aug. 2 /PRNewswire-FirstCall/ -- GTECH
Holdings Corporation (NYSE:GTK) today announced that LOXLEY GTECH
Technology Co. Ltd. (LGT), a joint venture in which GTECH is a 49
percent equity owner, has signed a five-year agreement to provide
equipment and services for a national online lottery in Thailand.
Loxley Public Company Limited, a leading trading and
telecommunications conglomerate in Thailand, holds a 51 percent
equity stake in LGT. GTECH is the major technology and service
provider to LGT. "This is another significant achievement for
GTECH," said GTECH President and CEO W. Bruce Turner. "We look
forward to assisting in the implementation of Thailand's first-ever
online lottery. Our partnership with LGT will provide leading-edge
technology and best-practice project management principles to
deliver a world-class lottery solution and services to the
Government of Thailand." Under the terms of the agreement, GTECH
will supply a turnkey system, consisting of GTECH's Enterprise
Series(TM) solution and approximately 12,000 Altura(R) terminals,
to LGT, who will, in turn, supply equipment and integrated services
to the Government Lottery Office (GLO) of Thailand. Enterprise
Series will provide the GLO with multiple layers of security,
including system controls and procedures, and auditing and
accountability for all transactions. The lottery may also expand to
up to 15,000 Altura terminals over the term of the agreement.
Additionally, GTECH will provide software management and licensing
rights to LGT for the five-year term. The GLO expects commercial
operation of the online system to commence at the end of February
2006. "This win opens up even more potential opportunities for
GTECH in the Asia-Pacific region where our advanced technology
offers break-through possibilities to many new and expanding gaming
markets," continued Mr. Turner. With respect to its agreement with
LGT, GTECH expects to generate approximately $35 million in product
sale revenue. GTECH also expects to receive approximately $17
million in service revenue for ongoing central system software
support and licensing over the five years. 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
$1.25 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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