5-Year Equipment and Services Pact Valued at $42 Million
NEW BRITAIN, Conn., and NEW YORK, Feb. 12 /PRNewswire-FirstCall/ -- The
Connecticut Lottery Corporation has announced its intent to award
Scientific Games (Nasdaq: SGMS) its lottery systems contract to supply a
new range of lottery equipment and management services to the CT Lottery.
The contract begins in May 2008, will have an initial term of five years,
and will provide for five one-year extension options. The contract was
awarded after a competitive request for proposal process, and is valued at
approximately $42 million over its initial term.
"Scientific Games is a leader in the industry and we look forward to
the continuation of our relationship with them. The new range of services
and equipment they will provide the Lottery will offer significantly more
options for producing superior games, increasing service to our customers
and, ultimately, generating more record-breaking sales," said John Paul,
Chairman of the Connecticut Lottery Corporation.
Scientific Games will supply the Lottery with new gaming equipment,
including a central system, approximately 3,000 terminals with touch-screen
technology, 3,000 customer display units and 3,000 in-store customer ticket
checkers for the Lottery's retailer network. Additionally, Scientific Games
will install and maintain a state-of-the-art satellite-based communications
network.
Scientific Games holds the current contract, which went into effect in
May 1998. Terms of the new contract will significantly enhance Scientific
Games capacity to support the CT Lottery.
"The CT Lottery has been a valued systems customer of Scientific Games
since 1998, and previously as Autotote since 1993. One of our highest
priorities is the retention of longtime customers. We also look forward to
continuing to grow revenues that help fund important state programs," said
Lorne Weil, Chairman and CEO of Scientific Games.
The CT Lottery produced record sales of $970.3 million in fiscal 2006,
of which nearly a third, more than $284.8 million, went into the State's
general fund to support services and programs including education, public
health, human resources, public safety and more, which benefit the people
of the State.
"Scientific Games has managed the current contract very effectively and
we anticipate even greater success as SG integrates new state-of-the-art
equipment with upgraded software," said James Vance, President and CEO of
the Connecticut Lottery Corporation."
About Connecticut Lottery Corporation
The Connecticut Lottery became the Connecticut Lottery Corporation on
July 1, 1996, marking the first time a state lottery transitioned from a
state agency to a quasi-public corporation. At 35 years old, the CT Lottery
is the fourth oldest lottery in the United States. Since its inception in
February 1972, the CT Lottery has generated total sales in excess of $16.4
billion, awarded nearly $9.5 billion in prizes to its players, and has
transferred more than $6.0 billion to the General Fund. Appropriated by the
Legislature, Connecticut's General Fund is used to fund a wide range of
state services for Connecticut residents, ranging from the maintenance of
roads to health and hospitals, education and public safety. For more
information about the Connecticut Lottery Corporation, please visit
http://www.ctlottery.org.
Company Contact:
Diane Patterson
Connecticut Lottery Corporation
860-348-4126
About Scientific Games
Scientific Games Corporation is the leading integrated supplier of
instant tickets, systems and services to lotteries, a leading supplier of
fixed odds betting terminals and systems, interactive sports betting
terminals and systems, and wagering systems and services to pari-mutuel
operators. It is also a licensed pari-mutuel gaming operator in
Connecticut, Maine and the Netherlands and is a leading supplier of prepaid
phone cards to telephone companies. Scientific Games' customers are in the
United States and more than 60 other countries. For more information about
Scientific Games, please visit our web site at
http://www.scientificgames.com.
Company Contact:
Investor Relations
Scientific Games Corporation
212-754-2233
Forward-Looking Statements
In this press release we make "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform Act of
1995. In some cases, forward-looking statements can be identified by the
use of forward-looking terminology such as "may," "will," "estimate,"
"intend," "continue," "believe," "expect" or "anticipate," or the negatives
thereof, variations thereon or similar terminology.
These forward-looking statements generally relate to plans and
objectives for future operations and are based upon management's reasonable
estimates of future results or trends. Although we believe that the plans
and objectives reflected in or suggested by such forward-looking statements
are reasonable, such plans or objectives may not be achieved.
Actual results may differ from projected results due, but not limited,
to unforeseen developments, including developments relating to the
following:
-- economic, competitive, demographic, business and other conditions in
our local and regional markets;
-- changes or developments in the laws, regulations or taxes in the gaming
and lottery industries;
-- actions taken or omitted to be taken by third parties, including
customers, suppliers, competitors, members and shareholders, as well as
legislative, regulatory, judicial and other governmental authorities;
-- changes in business strategy, capital improvements, development plans,
including those due to environmental remediation concerns, or changes
in personnel or their compensation, including federal, state and local
minimum wage requirements;
-- the availability and adequacy of our cash flow to satisfy our
obligations, including our debt service obligations and our need for
additional funds required to support capital improvements, development
and acquisitions;
-- an inability to renew or early termination of our contracts;
-- an inability to engage in future acquisitions;
-- the loss of any license or permit, including the failure to obtain an
unconditional renewal of a required gaming license on a timely basis;
and
-- resolution of any pending or future litigation in a manner adverse to
us.
Actual future results may be materially different from what we expect.
We will not update forward-looking statements even though our situation may
change in the future.
Forward-looking statements speak only as of the date they are made, and
except for our ongoing obligations under the U.S. federal securities laws,
we undertake no obligation to publicly update any forward-looking
statements whether as a result of new information, future events or
otherwise.
SOURCE Scientific Games
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Related links:
http://www.scientificgames.com
http://www.ctlottery.org
http://www.prnewswire.com/comp/117695.html/
CONTACT:
Diane Patterson of Connecticut Lottery
Corporation, +1-860-348-4126; or Investor Relations, Scientific
Games Corporation, +1-212-754-2233
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