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INTERNATIONAL TOTALIZATOR SYSTEMS TO SUPPLY LOTTERY SERVICES TO REPUBLIC OF GEORGIA

 INTERNATIONAL TOTALIZATOR SYSTEMS
 TO SUPPLY LOTTERY SERVICES TO REPUBLIC OF GEORGIA
 CARLSBAD, Calif., June 24 /PRNewswire/ -- International Totalizator Systems Inc.(R) (ITS) (NASDAQ-NMS: ITSI) has signed an agreement to supply an on-line lottery system in the Republic of Georgia. The company believes that such system will be the first on- line lottery to be established in any of the republics of the former Soviet Union. The agreement between ITS Service Corp., a wholly owned subsidiary of International Totalizator Systems Inc. and USI-Lile, a joint venture between a U.S. company headquartered in New York and a group of Georgian businessmen, calls for ITS Service Corp. to provide a turnkey lottery system under a lease and management services for the implementation of a lottery in the Republic of Georgia.
 ITS Service Corp. will receive approximately 6 percent of the gross weekly lottery revenue for a period of 15 years, commencing on the "go-live" date which is tentatively scheduled for October 1992. ITS has negotiated a separate agreement with the government of Georgia whereby payments to ITS Service Corp. will not be subject to any taxes by the Republic of Georgia. In addition, it is the intention to run both a hard currency lottery and a ruble lottery and under the agreement with the taxing authorities ITS will have the right to withdraw funds in hard currency.
 Under the terms of the agreement the lottery will set aside up to 10 percent of its initial revenues for expansion of the system by purchasing additional terminals from ITS. It is anticipated that approximately 500 terminals will be utilized at start-up. The system will be expandable to 3,500 terminals. ITS Service Corp.'s management services will include a general manager and a technical manager. The general manager has been selected from ITS' marketing management team in California and is already in the process of implementing the first phases of the project.
 The costs associated with the start-up phase of this project currently approximate $1.5 million and will be amortized over the 15-year life of the contract once the revenue stream begins. The company anticipates the costs to be funded through its working capital.
 The contract for the lottery in the Republic of Georgia is the second of this type to be signed by ITS. The company is working toward a new mix of business by acquiring service as well as sales contracts in order to enhance its revenues and earnings.
 International Totalizator Systems Inc. trades on the NASDAQ National Market System as ITSI. The company provides customized ticketing, transaction processing and data management solutions for computerized pari-mutuel wagering, on-line lotteries and automated travel ticket pricing.
 -0- 6/24/92 R
 /CONTACT: Karen Patchen of International Totalizator Systems, 619-931-4027/
 (ITSI) CO: International Totalizator Systems Inc. ST: California IN: CPR SU: CON


EH-KJ -- SD002R -- 3140 06/24/92 08:27 EDT
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Publication:PR Newswire
Date:Jun 24, 1992
Words:477
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