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LOTTOMATICA GROUP SUBSIDIARY GTECH CORPORATION NAMED APPARENT SUCCESSFUL BIDDER BY THE KENTUCKY LOTTERY TO PROVIDE NEW LOTTERY TECHNOLOGY AND ONGOING SERVICES UNDER A SEVEN-YEAR CONTRACT, FOLLOWING COMPETITIVE PROCUREMENT

GTECH TO INSTALL NEW SYSTEMS, TERMINALS, SELF-SERVICE PRODUCTS, AND DUAL-COMMUNICATIONS NETWORK0

ANTICIPATED REVENUES TO GTECH OF APPROXIMATELY $70 MILLION OVER THE PROPOSED CONTRACT TERM, COMMENCING IN 2011

ROME (ITALY) – PROVIDENCE, RHODE ISLAND (US), April 16, 2010 – Lottomatica Group S.p.A. announced that its subsidiary GTECH Corporation has been named the apparent successful bidder by the Kentucky Lottery Corporation (KLC) to provide a complete array of online lottery products and services, following a competitive procurement. GTECH’s proposed solution set for the KLC and its retailers includes a full suite of online and instant systems, 3,000 online lottery terminals, self-service lottery vending machines, a new dual-communications network, and ongoing services. The proposed seven-year contract is expected to commence June 29, 2011, and allows for eight one-year extension options, for a total of 15 years. The base seven-year contract is expected to generate revenues of approximately $70 million for GTECH, commencing in July 2011. GTECH Printing Corporation was also selected by the KLC as a secondary provider of instant tickets over a base period of five years.

GTECH President and CEO Jaymin B. Patel said, “The Kentucky Lottery, in its recent Request for Proposal, asked potential vendors to identify areas where they could provide additional value over the new contract. We applaud the Kentucky Lottery for taking this innovative approach in the RFP, and we are pleased to have been recognized for the valued-added products and services GTECH is able to offer.”

“As a trusted partner for more than two decades, GTECH provides the level of assurance a successful lottery such as the Kentucky Lottery relies upon for delivering the maximum player experience, integrity, security, and profitability,” continued Mr. Patel. “We are also pleased that our affiliate, GTECH Printing Corporation, continues to grow its customer base with the addition of its newest customer, the Kentucky Lottery.”

“The Kentucky Lottery looks forward to continuing the growth we have experienced with GTECH since our startup,” said Kentucky Lottery President and CEO Arch Gleason. “This contract will offer innovative products as well as an expansion of new self-service machines for our retailers, providing additional opportunities for us to increase sales and return even more dollars for college scholarships, grants, and higher education funding in Kentucky.”

Under the proposed new contract, GTECH will provide its Enterprise Series system solution, specifically tailored to offer a best practices technology approach to support the KLC’s business plan with the flexible tools needed to increase sales and revenue contributions to education over the next seven years. In addition, GTECH will install and maintain 3,000 Altura® GT1200 lottery terminals. The GT1200 is the most advanced touch-screen terminal in the lottery industry and allows for the rapid deployment of the KLC’s online games. GTECH will also introduce ES MultiMedia digital advertising displays to stimulate increased brand awareness of the KLC product line across the entire retail network at the point-of-sale. The Company will expand the KLC’s self-service network through additional Ticket-Scan™ ticket-checker units. The Lottery will also receive 600 self-service vending machines, offering players a selection of instant-ticket and quick-pick online games, and support for the full complement of the Lottery’s games. In addition, the existing communications network will be converted to Dual Comm Inside (VSAT and wireless), GTECH‘s new innovative communications solution and the first of its kind in the lottery industry.

The KLC has been a valued GTECH customer since the Lottery’s inception in 1989. Over the duration of the new contract, GTECH will continue providing the operation and maintenance of the central system; terminal maintenance; field service; marketing consultancy; and hotline management.

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Lottomatica Group 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 companies are the only vertically integrated full service lottery group. Lottomatica Group 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 2009, Lottomatica Group had approximately €2.2 billion in revenues and 7,500 employees in over 50 countries when combined with GTECH.

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For further information:

  Robert K. Vincent
GTECH Corporation
Public Affairs
T. (+1) 401 3927452
 

This press release and previous ones are available on Lottomatica and GTECH web sites: www.lottomaticagroup.com  - www.gtech.com



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