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GTECH Extends Beijing Contract10 May 2006WEST GREENWICH, Rhode Island – (PRESS RELEASE) -- GTECH Holdings Corporation (NYSE: GTK) today announced that its wholly-owned subsidiaries, GTECH Corporation and GTECH Global Services Corporation Ltd., signed a three-year contract extension to supply the Beijing Welfare Lottery Center (BWLC) with a new online lottery central system, new lottery terminals, and ongoing software licensing and support. The contract extension runs through December 31, 2015, with three one-year extensions beyond that date. "We believe the decision by BWLC to continue its partnership with GTECH is a tribute to our commitment to providing quality products and services," said GTECH President and CEO W. Bruce Turner. "We are eager to use this opportunity to further strengthen our relationship with the lottery and their retailers over the next several years, and we look forward to continuing the growth and progress we have experienced since BWLC's startup in 2000." Under the terms of the contract extension, GTECH will replace BWLC's existing lottery equipment with GTECH's Enterprise Series(TM) solution and 1,500 Altura(R) terminals. GTECH will continue to provide ongoing services to BWLC including upgrades and maintenance for its keno and lottery central systems; software licensing and support; game design; marketing consultation; and terminal spare parts and additional terminals as determined by BWLC. GTECH will receive a percentage of sales as an ongoing software license and support services fee. "It is also important to note that an alliance arrangement whereby BWLC can become the hub lottery/keno operator for neighboring jurisdictions in China remains in place," continued Mr. Turner. "To date, GTECH has added one keno jurisdiction under this arrangement, Shenzhen, in October 2005." GTECH has provided lottery products and services to BWLC since its inception in 2000. Since that time, BWLC's sales have grown year-over-year reaching $255 million in 2005. Proceeds generated by the BWLC support various welfare funds, with an emphasis on orphanages and elderly care. |