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LOTTOMATICA’S GTECH SUBSIDIARY NOTIFIED BY THE NEW JERSEY DIVISION OF PURCHASE AND PROPERTY OF ITS INTENT TO AWARD GTECH NEW ONLINE/INSTANT SYSTEM LOTTERY CONTRACT
EXPECTED REVENUES TO GTECH OF APPROXIMATELY $105 MILLION OVER THE SEVEN-YEAR CONTRACT TERM
ROME (ITALY) – PROVIDENCE, RHODE ISLAND (U.S.) – December 29, 2008 – Lottomatica S.p.A.’s wholly-owned subsidiary GTECH Corporation was notified by the New Jersey Division of Purchase and Property of its intent to award GTECH a new contract to provide a new online/instant lottery system, terminals, a variety of self-service products, an IP-communications network, and ongoing services, following a competitive procurement. The proposed seven-year integrated services contract includes three one-year extension options.
The New Jersey Lottery estimates the total value of the contract to be approximately $105 million over the contract period. GTECH expects to finalize a contract with the Lottery in January 2009, subject to a protest period which ends on January 15, 2009.
“New Jersey is one of the top-performing lotteries in the world, and we are pleased to be able to continue the partnership we began with them nearly 25 years ago,” said GTECH President and CEO Jaymin B. Patel. “Over the next several years, GTECH looks forward to working together with the Lottery to apply industry-wide best practices, provide added convenience for players and retailers through additional self-service lottery products and the benefits of evolving technology that includes further enhancement of their lottery system, terminal offering, and communications network, and the deployment of new electronic POS messaging devices.”
“All of this combined gives players better access to the games they like to play, a more efficient lottery environment for retailers, and maximizes revenues for education for a Lottery that has done an outstanding job with online lottery and instants portfolio growth, making them one of the most profitable lotteries in the world,” continued Mr. Patel.
Under the proposed new contract terms, GTECH expects to provide the New Jersey Lottery with a comprehensive set of solutions including a central system conversion to GTECH’s Enterprise Series™, approximately 6,200 new online lottery terminals, and an IP-communications network. In addition, the Company expects to install 4,100 Ticket-Scan™ machines, GTECH’s self-service ticket checkers allowing players secure access when identifying winning tickets; deploy its Enterprise Series MultiMedia player messaging and transition display technology with 1,500 flat-panel monitors; and install 1,500 Instant Ticket Vending Machines, 500 of which will be GTECH’s Lottery to Go™ and 1,000 Instant to Go™ 24-bin units. Additionally, GTECH will provide telemarketing, warehousing, and distribution services for the Lottery’s instant tickets.
GTECH will continue to provide ongoing services including installation and maintenance of the central system, terminals, and communications network, as well as field service and retailer training.
GTECH will also provide the Lottery with a full range of marketing consultancy services in game product planning, sales analysis capabilities, and through market surveys and research, and retailer network reviews.
“GTECH is privileged to work hand-in-hand with the Lottery providing a holistic approach to the marketplace, through player and retailer trend analyses, and learning from our global footprint and our New Media subsidiaries who are well-versed in interactive offerings and exciting new game content,” said Mr. Patel.
GTECH has been the online lottery technology and services provider to the New Jersey Lottery since 1984. The New Jersey Lottery ranks eighth in the world in terms of total lottery sales. In its most recent fiscal year, the New Jersey Lottery recorded sales of more than $2.5 billion. Since its inception in 1970, the New Jersey Lottery has contributed more than $16.4 billion to state education and institutions.
Lottomatica is a market leader in the Italian gaming industry and one of the largest Lottery operators in the world based on total wagers and, through its subsidiary GTECH Corporation, is a leading provider of lottery and gaming technology solutions worldwide. Together, the Company is the only vertically integrated full service lottery company. Lottomatica is majority owned by De Agostini, which belongs to a century-old publishing and media services group. Lottomatica is listed on the Stock Exchange of Milan under the trading symbol “LTO”. In 2007, the Company had approximately €1.7 billion in revenues and 5,900 employees in over 50 countries when combined with GTECH.
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For further information:
Simone Piattelli Palmarini
Lottomatica S.p.A
Media Communications
T. (+39) 06 51899877
M. (+39) 335 5305097 |
Robert K. Vincent
GTECH Corporation
Public Affairs
T. (+1) 401 3927452 |
Giuliano Boggiali
Lottomatica S.p.A
Investor Relations
T. (+39) 06 51899020 |
This press release and the previous ones are available on Lottomatica and GTECH web sites: www.gruppolottomatica.it - www.gtech.com