Pact Valued at $800K Per Year
NEW YORK, Nov. 9 - SCIENTIFIC GAMES CORPORATION (Nasdaq: SGMS) announced that it has been named the apparent successful bidder for the Vermont Lottery's instant ticket contract. The contract is set to begin in December of 2005 for an initial term of two years, with two one-year options to renew. It is valued at approximately $800,000 per year.
Scientific Games already holds the contract for Vermont's online lottery system, and Vermont will now be one of 12 states where Scientific Games is the primary supplier of instant and online lottery tickets.
"We will be building on the strength of an already solid operation by introducing a suite of games that, we believe, will be especially popular with the Vermont public" said Lorne Weil, Chairman and CEO of Scientific Games Corporation. "Thanks to the efforts of staff and management, Vermont's Lottery has benefited from great sales."
"Scientific Games has a very good instant lottery track record and brings strong game design and management capabilities to the table," said Alan R. Yandow, Executive Director of the Vermont Lottery. "That strength, combined with our experience in working with Scientific Games in our online operations, as well as their strong proposal, made the company our first choice."
In fiscal 2005, Vermont Lottery generated over $71 million in retail sales of instant tickets. Since its inception in 1978, the Vermont Lottery has transferred more than $339 million to the state's General and Education Funds.
"We think Vermonters will enjoy the many new ways they will have to play and win," said Yandow. "But the real winner, of course, is the state's Education Fund."
About Scientific Games
Scientific Games Corporation is the leading integrated supplier of instant tickets, systems and services to lotteries, and the leading supplier of wagering systems and services to pari-mutuel operators. It is also a licensed pari-mutuel gaming operator in Connecticut 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.
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.
Company Contact: Investor Relations
Scientific Games Corporation
212-754-2233
