GTK Gtech

WEST GREENWICH, R.I., Oct. 18 /PRNewswire-FirstCall/ -- GTECH Holdings Corporation (NYSE:GTK) today announced that its wholly-owned subsidiary, GTECH Corporation, was selected by the Arizona Lottery as the preferred bidder for a new online lottery system, terminals, and communications network. The proposed five-year integrated services contract is expected to commence August 31, 2006, and will include five one-year renewal options. This award is the result of a competitive bidding process. "GTECH has worked in close partnership with the Arizona Lottery for more than two decades, and we are appreciative of their continued confidence in our company," said GTECH President and CEO W. Bruce Turner. "In our proposal, we offered the Lottery an integrated solution that provides an enabling platform, our industry-leading Enterprise Series (ES) solution, and the most diverse point-of-sale solutions for the rapidly growing and changing Arizona retail environment. In addition, we offered a portfolio of game content strategies and an ever-expanding portfolio of new game concepts that will produce sustainable and responsible revenue growth for the state of Arizona." Upon successful completion of a new contract, GTECH will convert the Lottery's existing system to the Company's Enterprise Series(TM) technology platform and replace the existing terminal base with approximately 2,600 Altura(R) terminals. In addition, GTECH will provide an IP-based communications network. "GTECH's solution is designed to adapt to accelerating shifts in retail distribution and the latest trends in consumer communications, and enables the expansion of entertainment choices, play value, and consumer access," continued Mr. Turner. GTECH will continue to provide ongoing services to the Arizona Lottery including central system and terminal maintenance; field service; marketing support; and hotline management. GTECH has provided lottery products and services to the Arizona Lottery since 1984. Under the terms of the proposed agreement with the Lottery, GTECH expects to generate revenues of approximately $35 million to $40 million over the five-year 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. 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 is a leading gaming technology and services company. With more than $1.25 billion in annual revenues and 5,300 people in over 50 countries, GTECH provides integrated technology, creative content, and business services to effectively manage and grow today's evolving gaming markets. In targeted emerging economies, GTECH also leverages its operational presence and infrastructure to supply commercial transaction processing services. 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 Holdings Corporation CONTACT: Robert K. Vincent, Public Affairs of GTECH Corporation, +1-401- 392-7452 Web site: http://www.gtech.com/

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