ROME and PROVIDENCE, R.I., April 26 /PRNewswire-FirstCall/ -- Lottomatica S.p.A.'s (Pink Sheets: LTTOY) wholly-owned subsidiary, GTECH Corporation, today announced that it has been informed by the Pennsylvania Lottery of their intent to award the contract for the Lottery's online and instants-system to the incumbent vendor. Previously, the Lottery had announced the intention to award the contract to GTECH and referenced the pricing of the proposal. Negotiations with the Company followed.
In March 2008, the Lottery reversed course and announced it would seek best and final offers (BAFO) from the two bidders who submitted proposals in response to the original RFP, thereby allowing the previously unsuccessful incumbent an opportunity to re-bid. GTECH will review the matter to determine the extent to which the Company's rights have been violated during the BAFO process, and take appropriate legal action, if appropriate.
The proposed five-year contract was expected to generate annual revenues to GTECH in the range of euro 15 million to euro 18 million beginning in 2009, with an approximate euro 40 million planned investment in 2008. Lottomatica Group confirms its financial guidance provided on April 7, 2008, in the Group's 2008 - 2010 Strategic Plan presentation.
Lottomatica is one of the world's largest commercial lottery operators and a market leader in the Italian gaming industry. GTECH is a leading gaming technology and services company, providing innovative technology, creative content, and superior service delivery. GTECH and Lottomatica together create a fully integrated lottery operator and gaming technology solutions provider -- a combined company with worldwide scale, considerable financial strength, and industry-leading customer solutions. Lottomatica is majority owned by De Agostini, which belongs to a century-old publishing, media, and financial services group. Lottomatica is publicly traded on the Italian Stock Exchange (LTO), and in 2007, had approximately euro 1.7 billion in revenues and 5,900 employees in over 45 countries when combined with GTECH.
For further information: AD HOC Communication Advisors 02/7606741 Mario Pellegatta - Matteo Cidda 335/1415585 This press release and the previous ones are available on the web site: http://www.adhoccommunication.it/ Lottomatica web site: http://www.gruppolottomatica.it/ GTECH contact: Robert K. Vincent Public Affairs 1-401-392-7452 GTECH web site: http://www.gtech.com/
