GTECH Contract Award Reinstated in Mexico
August 09 2004 - 9:15AM
PR Newswire (US)
GTECH Contract Award Reinstated in Mexico Customer Notifies GTECH
of Intent to Proceed with Negotiations of New Contract Based Upon
Mexican Comptroller's Ruling WEST GREENWICH, R.I., Aug. 9
/PRNewswire-FirstCall/ -- GTECH Holdings Corporation (NYSE:GTK)
today announced that the Company's contract award to provide
equipment and services for a new online lottery system and
associated telecommunications network to Pronosticos para la
Asistencia Publica (Pronosticos) has been reinstated, based upon a
decision made by the Secretaria de la Funcion Publica (Mexican
Comptroller Ministry) which declares GTECH's bid compliant. As a
result of this decision, Pronosticos has officially notified GTECH
that the original award of January 2004 remains effective, and it
will proceed with negotiations for a new long-term contract with
GTECH Corporation. As previously announced in April 2004, GTECH's
bid was declared non- compliant due to the conditionality of the
bid, and disqualified as part of a ruling by the Mexican
Comptroller Ministry on a protest filed by unsuccessful
competitors. In May, GTECH challenged the Comptroller's decision.
"We are very pleased with the Comptroller's decision," said GTECH
President and CEO W. Bruce Turner. "It has always been our belief
that GTECH submitted a fully compliant bid that is in the best
interest of the lottery. GTECH is proud of the important role we
have played in making Pronosticos a highly successful lottery and
we look forward to negotiating a new long-term contract." 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, 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 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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