Cogetech Joint Venture Named a Successful Applicant for Five-Year License to Operate a Gaming Machine Network and Central System
July 01 2004 - 9:00AM
PR Newswire (US)
Cogetech Joint Venture Named a Successful Applicant for Five-Year
License to Operate a Gaming Machine Network and Central System and
Provide Related Services in Italy GTECH to Provide Technology and
Services to Cogetech WEST GREENWICH, R.I., July 1
/PRNewswire-FirstCall/ -- GTECH Holdings Corporation (NYSE:GTK)
today announced that Cogetech, a joint venture formed by GTECH
Global Services Corporation and Cogemat S.p.A., has been named a
successful applicant for a non-exclusive license to install and
operate a network and related central computer system linking
gaming machines in Italy, and provide technology and ongoing
services to the Amministrazione Autonoma dei Monopoli di Stato
(AAMS), the department of the Italian Ministry of Finance that
regulates wagering games in the country. GTECH will be the
technology and services provider to Cogetech and will have a 35%
equity interest. Cogemat, a company founded by leading distributors
and operators of Italian Amusements With Prizes (AWP) machines,
will manage all field activities with a 65% equity interest in the
joint venture. The decision was announced yesterday by the
Evaluation Committee of the AAMS. The proposed license has a
five-year term and may be extended by the AAMS for one additional
year. "This is yet another significant milestone for the Company,"
said GTECH President and CEO W. Bruce Turner. "The Italian gaming
market ranks eighth in the world in terms of total gaming sales.
However, much of the legalized gaming machine market in the country
remains virtually untapped. Our success in Italy provides GTECH
with a strategic foothold in a country with significant growth
potential." Upon Cogetech's signing of a definitive licensing
agreement with the AAMS, GTECH will supply Cogetech with the
Company's Enterprise Series Video Lottery central system, providing
connectivity to the AAMS for up to 65,000 distributor-owned gaming
machines to be deployed at various establishments across the
country. These gaming machines are similar to video lottery
terminals (VLTs) and will be provided by a number of approved
European suppliers. For the duration of the license, GTECH will
provide ongoing services to Cogetech, including central system
maintenance, technology and communications consultancy, software
development and licensing, and personnel training. Cogetech will
have primary and backup data centers in Rome and expects to launch
the new system by November 2004. GTECH expects to generate revenues
of approximately $40 million to $50 million over the initial
five-year license period. 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. 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, a leading global information technology company with over $1
billion in revenues and more than 5,500 people in 45 countries,
provides software, networks, and professional services that power
high-performance, transaction processing solutions. The Company's
core market is the lottery industry, with a growing presence in
commercial gaming technology and financial services transaction
processing. 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 CONTACT: Robert K. Vincent, Public Affairs, GTECH
Corporation, +1-401-392-7452 Web site: http://www.gtech.com/
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