GTECH Selected by the Arizona Lottery as the Preferred Bidder for New Online Lottery System, Terminals, and Communications Netwo
October 18 2005 - 9:55AM
PR Newswire (US)
WEST GREENWICH, R.I., Oct. 18 /PRNewswire-FirstCall/ -- GTECH
Holdings Corporation (NYSE:GTK) today announced that its
wholly-owned subsidiary, GTECH Corporation, was selected by the
Arizona Lottery as the preferred bidder for a new online lottery
system, terminals, and communications network. The proposed
five-year integrated services contract is expected to commence
August 31, 2006, and will include five one-year renewal options.
This award is the result of a competitive bidding process. "GTECH
has worked in close partnership with the Arizona Lottery for more
than two decades, and we are appreciative of their continued
confidence in our company," said GTECH President and CEO W. Bruce
Turner. "In our proposal, we offered the Lottery an integrated
solution that provides an enabling platform, our industry-leading
Enterprise Series (ES) solution, and the most diverse point-of-sale
solutions for the rapidly growing and changing Arizona retail
environment. In addition, we offered a portfolio of game content
strategies and an ever-expanding portfolio of new game concepts
that will produce sustainable and responsible revenue growth for
the state of Arizona." Upon successful completion of a new
contract, GTECH will convert the Lottery's existing system to the
Company's Enterprise Series(TM) technology platform and replace the
existing terminal base with approximately 2,600 Altura(R)
terminals. In addition, GTECH will provide an IP-based
communications network. "GTECH's solution is designed to adapt to
accelerating shifts in retail distribution and the latest trends in
consumer communications, and enables the expansion of entertainment
choices, play value, and consumer access," continued Mr. Turner.
GTECH will continue to provide ongoing services to the Arizona
Lottery including central system and terminal maintenance; field
service; marketing support; and hotline management. GTECH has
provided lottery products and services to the Arizona Lottery since
1984. Under the terms of the proposed agreement with the Lottery,
GTECH expects to generate revenues of approximately $35 million to
$40 million over the five-year term. 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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