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GTECH RECEIVES NOTICE OF INTENT TO AWARD FIVE-YEAR CONTRACT PROVIDING INSTANT TICKET DISPENSING MACHINES (ITDMs) FOR THE ILLINOIS LOTTERY
(West Greenwich, Rhode Island -- March 10, 2004) - GTECH Holdings Corporation (NYSE:GTK) today announced that its wholly-owned subsidiary, GTECH Corporation, has received a notice of intent to award a contract providing the Illinois Lottery with Instant Ticket Dispensing Machines (ITDMs) and ongoing maintenance and support services. The proposed five-year contract follows a competitive procurement and includes a three-year extension option.
"We are pleased the Illinois Lottery has chosen GTECH as its ITDM network provider. This also represents our first win with the combined GTECH/Interlott brand and technology," said GTECH President and CEO W. Bruce Turner. " By providing connectivity to the ITDMs, we will make it possible for the Illinois Lottery and its retailers to combine management reporting of both online and instant-ticket-vending activity for the first time. As a result, they will have a more comprehensive and accurate picture of their total lottery business."
Upon successful completion of negotiations with the Illinois Department of Revenue, GTECH will provide the Lottery with up to 2,000 Expandable Dispensing System (EDS-Q) ITDMs. The machines are expected to be installed by the end of 2005.
"The ITDMs in Illinois will assist the Lottery in providing secure, automated distribution of instant lottery tickets to players and generate revenue that goes directly to public education in Illinois ," continued Mr. Turner. With annual sales of $1.59 billion, the Lottery generates approximately $540 million annually for Illinois public education.
The Illinois Lottery has been a valued GTECH customer since 1989. With respect to its contract resulting from negotiations with the Illinois Department of Revenue, the Company expects to generate revenues of approximately $20 million to $25 million over the five-year contract 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. 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.
GTECH, a leading global information technology company with $1 billion in revenues and 5,000 people in 44 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/.