GTK Gtech

GTECH Announces Joint Venture with Veikkaus Oy Organizations to Collaborate in the Development of Government-Sponsored Games and Solutions Over Emerging Interactive Channels WEST GREENWICH, R.I., June 21 /PRNewswire-FirstCall/ -- GTECH Holdings Corporation (NYSE:GTK) today announced that GTECH Global Services Corporation Limited, a wholly-owned subsidiary of GTECH Corporation, has entered into a joint venture agreement with Veikkaus Oy, the operator of the Finnish national lottery, to develop and market innovative new games and solutions for the lottery and gaming industries. The primary focus of the joint venture is the development of government-sponsored games and solutions over expanding interactive channels such as Internet, mobile telephony, and interactive television, with a main emphasis on sports betting. GTECH will hold an 81 percent equity stake in the joint venture, with the remaining 19 percent held by Veikkaus. The joint venture will be located in Finland, and initially staffed by Veikkaus personnel. The joint venture agreement is expected to close and be operational in the third quarter of this fiscal year, subject to certain closing conditions in the agreement. "Our joint venture with Veikkaus is another important step we are taking to enhance our solutions and game content portfolio, and deploy it over the widest array of channels available in the industry," said GTECH President and CEO W. Bruce Turner. "We believe the core assets of our two organizations can be effectively leveraged to allow us to accelerate the development of new games and solutions by creating an incubator setting, with the primary objective of developing government-sponsored games and solutions over the rapidly-growing interactive channels," continued Mr. Turner. "GTECH brings to the table an unparalleled level of technical skills, industry expertise, reliability, and global credibility," said Veikkaus CEO Risto Nieminen. "This joint venture will provide Veikkaus with enhanced game innovation, particularly for our interactive channels. It also provides a platform for new games and solutions that can be produced and marketed more rapidly and more effectively for Veikkaus' core business -- delivering lottery games for Finnish consumers." GTECH will also benefit from Veikkaus' successful track record of developing new games and cultivating business relationships necessary to deploy new games beyond the traditional retailer-assisted distribution channel. Veikkaus was the first lottery in the world to introduce Internet betting and live sports betting, among many other innovations. "When combined with the strength and resources that GTECH brings in the areas of research and development, and technology and infrastructure, this joint venture will play a powerful role in the accelerated development of new solutions and game content required to advance GTECH's overall objective in the gaming industry, which is serving our customers," said Mr. Turner. The joint venture will continue Veikkaus' long tradition of innovation by developing new solutions and games for Veikkaus' implementation, and for GTECH to productize and commercialize these innovations worldwide. The joint venture will realize revenue from GTECH's commercialization and licensing of new games and solutions developed by the joint venture. "There is a lot we can learn from Veikkaus about their approach to game development, but also in terms of interactive channel experience and, maybe most importantly, keen insights we can gain into the European marketplace," said Mr. Turner. "And, it provides another advanced environment for pilot testing these innovative games and solutions." 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 $1.2 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/

Copyright