GTECH Signs New Long-Term Software/Hardware Maintenance and Software License Agreements With Societe de la Loterie de la Suisse
August 04 2005 - 10:01AM
PR Newswire (US)
WEST GREENWICH, R.I., Aug. 4 /PRNewswire-FirstCall/ -- GTECH
Holdings Corporation (NYSE:GTK) today announced that its
wholly-owned subsidiary, GTECH Global Services Corporation, and
Societe de la Loterie de la Suisse Romande (LoRo) have successfully
negotiated a new software/hardware maintenance and support services
agreement, and a new software license agreement, resulting in
additional recurring revenues to GTECH of approximately $20 million
over a minimum term of six years. In addition, GTECH also signed
its previously-awarded product sale agreement with LoRo for a new
integrated online and instant-ticket lottery system, Altura(R)
terminals, and communications network, which GTECH now values at
approximately $14 million. "In the past, GTECH's system maintenance
and software license agreements with LoRo were renewed each year,
at LoRo's discretion," said GTECH President and CEO W. Bruce
Turner. "The fact that LoRo opted for six-year minimum contract
terms, rather than continue on a year-to year basis, illustrates
their confidence in GTECH's capabilities and is a testament to the
success of the partnership." GTECH has provided equipment and
services to LoRo since 1994. In addition to Switzerland, GTECH
provides lottery products and services in several countries
throughout Europe including Belgium, the Czech Republic, Denmark,
Finland, France, Germany, Ireland, Lithuania, Luxembourg, Poland,
Portugal, the Slovak Republic, Spain, Sweden, Ukraine, and the
United Kingdom. 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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