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FLORIDA LOTTERY NAMES GTECH APPARENT SUCCESSFUL VENDOR FOR NEW MULTI-YEAR CONTRACT
Company to Provide GTECH Enterprise SeriesTM Architecture, Altura® Terminals, Lottery InsideTM, and Telecommunications Network
(West Greenwich, Rhode Island -- September 3, 2003) – GTECH Holdings Corporation (NYSE:GTK) today announced that its wholly-owned subsidiary, GTECH Corporation, has been selected by the Florida Lottery as the apparent successful bidder to supply a new online and instant-ticket lottery system, lottery terminals, and related telecommunications network. The proposed six-year integrated services contract is expected to commence on February 1, 2005, and includes two two-year extension options. This decision by the Florida Lottery is the result of a public, competitive procurement.
"We are pleased to be selected by one of the premier lotteries in the world," said GTECH President and CEO W. Bruce Turner. "This is a significant milestone as we have successfully completed a 36-month period of retaining our largest existing business contracts and we now turn our undivided attention to the growth of new customers in new markets. This is also an important milestone in our Enterprise Series market strategy and creates a long-term partnership with Florida's progressive and leading-edge reputation for player excitement and retailer satisfaction," continued Mr. Turner.
The Request for Proposals calls for the replacement of the Florida Lottery's existing system with new central system hardware and software. Upon successful completion of contract negotiations, GTECH will replace the Florida Lottery's current system with GTECH Enterprise SeriesTM architecture, featuring Internet Protocol (IP) and standards-based open architecture. GTECH will also replace the Lottery's current terminal equipment with approximately 12,000 Altura® terminals and has offered to supply up to 2,000 Lottery InsideTM retail point-of-sale (POS) solutions to provide state-of-the-art retailer and player convenience. Lottery Inside will also allow the Florida Lottery to expand its distribution channels by 16 percent by embedding lottery functionality in existing retailer POS hardware.
"Our fully integrated solution will help the Florida Lottery improve its current business processes and provide the highest level of reliability, security, and integrity," said Mr. Turner. "GTECH Enterprise Series and Lottery Inside will enable the Lottery to expand its product distribution and facilitate the future growth of its retailer network."
In addition, GTECH will install and maintain a state-of-the-art, IP-based wireless communications system, which provides highly secure and reliable communication between a central hub and lottery retailers.
GTECH will provide ongoing services to the Florida Lottery including system design, delivery, and ongoing support operations; terminal installation and maintenance; retailer training; hotline management; and telecommunications network management and maintenance. The Company will maintain a data center at Florida Lottery headquarters in Tallahassee and a backup data center in Orlando.
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. 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 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 industry; (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.
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GTECH, a leading global information technology company with $1 billion in revenues and 4,200 people in 43 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 financial services transaction processing. For more information about the Company, please visit GTECH's website at http://www.gtech.com. |
