GTK Gtech

GTECH to Partner with Oberthur for Printing of Instant Tickets WEST GREENWICH, R.I., Jan. 31 /PRNewswire-FirstCall/ -- GTECH Holdings Corporation (NYSE:GTK) today announced that its wholly-owned subsidiary, GTECH Corporation, has signed a long-term agreement with the North Carolina Education Lottery to provide a fully-integrated online and instant ticket lottery system, lottery terminals, a wireless communications network, Instant Ticket Vending Machines (ITVMs), management of warehousing and distribution of instant tickets, and ongoing services. Under this agreement, GTECH has also partnered with Oberthur Gaming Technologies Corporation (OGT) for the printing of instant tickets. The seven-year agreement is expected to commence on March 30, 2006, the anticipated launch date for instant ticket games, and follows a competitive procurement process. "We are extremely gratified to be chosen as the full-service provider for the North Carolina Education Lottery's online and instant ticket games," said GTECH President and CEO W. Bruce Turner. "In partnership with OGT, GTECH will offer the North Carolina Education Lottery a complete, end-to-end lottery solution, which is a testament to our unmatched experience in the lottery industry, our proven quality of services, and, most importantly, the integrity and security of our systems. "GTECH's fully-integrated solution will enable the Lottery to respond to market challenges with accelerated innovation, because we offer more robust reporting tools, a larger portfolio of games ready to market, and a unique set of devices and solutions for retail expansion, allowing the Lottery to effectively manage its growth in the years ahead," continued Mr. Turner. Under the terms of the seven-year agreement, GTECH will install the Company's Enterprise Series(TM) technology platform providing both online and instant ticket functionality, as well as 5,000 Altura(R) terminals initially. The Lottery has the option to grow the terminal base to up to 10,000 over time. The Company has also agreed to supply up to 1,000 Lottery Inside(TM) retail point-of-sale (POS) solutions which will allow the Lottery to expand its distribution channels by embedding lottery functionality in existing retailer POS hardware. GTECH will also install and maintain 800 ITVMs, and a state-of-the-art, IP wireless communications network, providing the most secure and reliable data connection between the host computer and lottery retailers. In addition, GTECH and OGT will work together to create, produce, and deliver instant tickets. "Executing these tickets from concept to game production is the expertise of OGT, and that expertise will be supported by GTECH's skill in efficient warehousing, distributing, marketing, and selling of the tickets once they are on the market," concluded Mr. Turner. GTECH will provide ongoing services to the Lottery including maintenance of the central system, lottery terminals, ITVMs, and communications network; instant games management, warehousing, and distribution; retailer training; marketing support; hotline management; and field service. With respect to its agreement with the Lottery, GTECH expects to generate approximately $225 million to $250 million in revenue over the seven-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. 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 First Call Analyst: FCMN Contact: 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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