GTK Gtech

GTECH Signs Agreement with Lotterie-Treuhandgesellschaft mbH Thuringen for New Online/Instant Lottery System and Terminals WEST GREENWICH, R.I., Dec. 21 /PRNewswire-FirstCall/ -- GTECH Holdings Corporation (NYSE:GTK) today announced that its wholly-owned subsidiary, GTECH Corporation, signed an agreement to provide a new online and instant lottery central system, point-of-sale (POS) terminals, and ongoing services to Lotterie-Treuhandgesellschaft mbH Thuringen (Thuringen Lottery) in Germany. "We are excited about extending our eight years of successful cooperation with the Thuringen Lottery, and look forward to working with them to expand and grow their business," said GTECH President and CEO W. Bruce Turner. "With Enterprise Series, GTECH will offer the Thuringen Lottery a system that fully integrates lottery games and related administrative systems and services, to meet the requirements of the Lottery, now and in the future. As the German states continue to face budget constraints, Enterprise Series will allow the Thuringen Lottery to run its business more efficiently and with greater flexibility." Under the terms of the product sale agreement, GTECH will replace the Lottery's existing GTECH ProSys(R) system with the Company's latest system solution, Enterprise Series(TM) (ES), featuring Internet Protocol (IP) and standards-based open architecture. As part of the ES platform, the Lottery will also receive ES Connect B2B(TM). ES Connect B2B will enable the Thuringen Lottery system to implement new channels of distribution for its online products by providing a defined messaging interface. The new interface will be accessed by local content providers, such as Internet or mobile, to offer lottery products to their expansive customer bases. In addition to ES Connect B2B, GTECH will offer ES Connect(TM) which allows the lottery system to support IP networks and IP lottery terminals. Approximately 820 GTECH Altura(R) POS terminals with AccuTherm(R) Supreme printers will be installed in addition to Customer Display Units (CDUs). The Lottery will also receive the Company's GWARE(TM) product, a Lottery Business Report tool that stores, searches, organizes, and displays gaming activity data collected at a central lottery site. This data encompasses transactions performed over jurisdiction areas, sales data and information on agents, terminals, cities and regions. GTECH will provide ongoing services to the Thuringen Lottery including central system and terminal maintenance, retailer training, and field service. GTECH has provided the Thuringen Lottery with products and services since 1996. With respect to its product sale agreement with the Lottery, GTECH expects to generate approximately $13 million. In addition, GTECH will receive approximately $7 million under a software and hardware maintenance contract for the terminals and central system over seven 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, a leading global information technology company with over $1 billion in revenues and more than 5,400 people in over 50 countries, provides software, networks, and professional services that power high-performance, transaction processing solutions. The Company's core market is the lottery industry, with a growing presence in commercial gaming technology and financial services transaction processing. 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 Corporation CONTACT: Robert K. Vincent, Public Affairs of GTECH Corporation, +1-401-392-7452 Web site: http://www.gtech.com/

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