HONG KONG and RENO, Nev., May 3 /Xinhua-PRNewswire/ -- China LotSynergy Holdings Limited (SEHK: 8161) and International Game Technology (NYSE: IGT) today announced that China LotSynergy Holdings Limited ("CLS") and International Game Technology ("IGT") have entered into a strategic alliance through a Subscription Agreement and a Technical Cooperation Agreement on May 1, 2007.
Pursuant to the agreements, IGT will invest approximately US$103 million in CLS, partly in the form of equity and partly in the form of a convertible note. Through the strategic alliance with CLS, IGT will be able to gain access to the fast-growing Chinese Lottery market, while CLS will be able to source advanced gaming technology to support its business expansion in China.
Ivy Lau, Chairperson of CLS said, "IGT is a global leader in the supply of gaming technology. This strategic alliance will be highly beneficial to both parties. We believe that IGT is the right strategic partner for us given its superior manufacturing capabilities and game and systems technology."
TJ Matthews, Chairman of IGT said, "We are very excited about the opportunity to participate in the fast-growing China Lottery industry by partnering with an established market leader who has extensive local expertise and experience like CLS. Our strategic investment in CLS attests to our confidence in the future success of our cooperation."
Proceeds from the shares and convertible note will be used for business expansion, potential investment opportunities, and general working capital purposes.
The completion of the agreements is subject to customary closing conditions, including, but not limited to, mutual satisfactory completion of due diligence and the Stock Exchange of Hong Kong approval on the listing of new shares. The closing date is anticipated to be on or before May 31, 2007.
About China LotSynergy Holdings Limited
CLS is principally engaged in investment, project development and the provision of technologies and equipment and consultancy services in Lottery business and related sectors in China.
About International Game Technology
IGT ( http://www.IGT.com ) is a global company specializing in the design, development, manufacturing, distribution and sale of computerized gaming machines and related systems.
Statements in this release, which are not historical facts, are "forward looking" statements under the Private Securities Litigation Reform Act of 1995. Although IGT believes that the expectations reflected in any of its forward-looking statements are reasonable, actual results could differ materially from those projected or assumed. IGT’s future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent known and unknown risks and uncertainties. IGT does not intend, and undertakes no obligation, to update forward-looking statements to reflect future events or circumstances.
Information on risks and factors that could affect IGT’s business and financial results are included in our public filings made with the Securities and Exchange Commission.
