California Lottery Orders Additional Lottery Products from GTECH
September 01 2005 - 10:00AM
PR Newswire (US)
WEST GREENWICH, R.I., Sept. 1 /PRNewswire-FirstCall/ -- GTECH
Holdings Corporation (NYSE:GTK) today announced that its
wholly-owned subsidiary, GTECH Corporation, has received an order
from the California Lottery for a variety of lottery products
including additional Altura(R) terminals, Instant Ticket Vending
Machines (ITVMs), and other self-service lottery solutions. "GTECH
is constantly looking for ways to enhance the performance of our
lottery customers, while, at the same time, considering the various
needs of retailers and players," said GTECH President and CEO W.
Bruce Turner. "Working together with the California Lottery, we
have come up with effective solutions that will not only aid in
their retailer network optimization and expansion efforts, but
continue to drive lottery sales. "And, as we see the growing retail
demand for self-service solutions, the addition of GamePoint will
provide California's retailers with the ability to dispense both
traditional instant tickets and online tickets, from a player-
friendly, kiosk-style unit," continued Mr. Turner. Under the
contract change order, GTECH will provide the California Lottery
with 550 Altura terminals, adding to the 18,500 Alturas already in
operation. In addition, 700 Altura LVTs will be installed,
providing a powerful, yet, compact platform for retailers requiring
a smaller terminal. The Company will also supply 12,500 Express
Point(R) Plus devices, bringing the total to 19,000. The Express
Point Plus terminals facilitate convenient player- activated
identification of online winning tickets. The Lottery will also
receive 1,000 20-bin Expandable Dispensing System Quad Burster(TM)
(EDS-Q) ITVMs, which will be used primarily as replacement
machines. Along with the ITVMs, GTECH will provide 150
GamePoint(TM) terminals, the Company's new lottery self-service
solution, combining the best of the instant ticket vending machine
with online self-service capability. Over the next 90 days, the
Lottery has agreed to order 200 additional ITVMs or 100 additional
GamePoints, or some mix of the two equipment types. With respect to
the contract change order with the California Lottery, GTECH
expects to receive approximately $8 million in product sale
revenue, and $35 million in service revenue over the life of the
existing contract which runs through October 13, 2009. GTECH has
provided lottery products and services to the California Lottery
since 1986. In its fiscal year which ended June 30, 2005, the
Lottery experienced record online and instant-ticket sales of more
than $3.3 billion. 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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