DANIEL W. BOWER, TOP INDUSTRY CONSULTANT, ELECTED CHAIRMAN OF VIDEO LOTTERY TECHNOLOGIES INC.
DANIEL W. BOWER, TOP INDUSTRY CONSULTANT, ELECTED CHAIRMAN OF VIDEO LOTTERY TECHNOLOGIES INC. BOZEMAN, Mont., Oct. 16 /PRNewswire/ -- Video Lottery Technologies Inc. (NASDAQ: VLTS) (VLT) today announced a new senior management team. Daniel Bower, a founder and former chairman of Scientific Gaming Inc., has been appointed chairman of VLT. James Davey, formerly the director of the Oregon State Lottery, has joined the company as chief operating officer. Larry Lippon has resigned as chairman and chief executive officer of the company. As part of VLT's new management structure, Stephen M. Barrett, senior vice president, general counsel and secretary of VLT, has become chief executive officer. Richard Barber will remain as president and a director of VLT. Lippon also advised VLT that he is in discussions regarding the possible disposition of all of his approximately 3.7 million shares of VLT. The investment group involved in these discussions supports the new management team, would not seek to be actively involved in the day to-day management of VLT and would not intend to make any changes regarding the employees or operations of the company. There can be no assurance that any transaction will be consummated, management said. In explaining these actions, Lippon said, "I am reluctant to leave VLT at this time. However, the recent decision of the Victorian (Australia) Gaming Commission reversing an earlier ruling naming a VLT subsidiary an approved gaming manufacturer has diverted attention from VLT's fundamental strengths. "In my opinion, the decision was unjust, unwarranted and has unnecessarily created unfounded speculation regarding VLT's business and prospects," Lippon said. "This situation has shifted focus from VLT's well-deserved reputation for integrity, quality and unquestioned ability to meet our customers' needs. Indeed, despite its adverse decision, the Victorian Gaming Commission noted the suitability and integrity of VLT's machines, games and monitoring systems. Because of VLT's many qualities, not only do I believe the Victorian Commission's decision was wrong, but also that there has been a dramatic overreaction to the decision in the market place. "It has become clear to me that the easiest and fastest means of confirming my judgment that VLT remain an important force in the industry with a bright future is to eliminate the only source of the Victorian Commission's concern, my past activities and credibility, as an element in VLT's business," said Lippon. Therefore, I am leaving VLT and will dispose of my VLT stock." Lippon continued, "From a personal standpoint, I would like to pursue every possible avenue to correct what I feel was an incorrect decision and demonstrate that I can continue to lead VLT on a course of aggressive growth. However, because it is in the best interests of VLT, its shareholders, and those who have shared my vision for the company, to have a prompt and clear resolution of the situation, I cannot put my personal feelings first. Along with many others, I have worked to create a business in which we can all take pride. Although I am deeply saddened by this turn of events, I am delighted that Jim Davey and Dan Bower have joined VLT and am confident that they, together with our loyal officers and employees, will keep VLT on the right track and build on the foundation in place." A spokesperson for the VLT board of directors stated, "We are all very sorry to see Larry leave the company. His leadership has been critical not only to VLT, but also to the development of the concept of video lottery as a revenue source for an increasing number of jurisdictions. The company appreciates Larry's selfless act. Because of Larry's past accomplishments, our high quality people, and the addition of Jim Davey and Dan Bower, both of whom have vast experience in the industry and company and the vision to keep VLT as a state-of the-art and innovative company, we are confident VLT will continue to be a vibrant company attractive to jurisdictions involved with on-line or video lottery systems." A company spokesperson stated that, in light of these developments, the company's annual meeting of shareholders, originally scheduled for Oct. 20, will be postponed to a later date to be announced shortly by the board. The company also reported that a number of lawsuits have been filed in the federal district court in Montana and the Delaware Chancery Court. These suits arise out of the decision of the Victorian Gaming Commission and allege, among other things, inadequate disclosures in violation of the federal securities laws and breaches of fiduciary duties to shareholders. The suits seek monetary damages. In addition, the Delaware suit seeks rescission of the company's initial public offering in 1991. The company believes it has at all times fully complied with the federal securities laws and that its directors have acted properly. Accordingly, the company believes that the suits are without merit. Video Lottery Technologies, through its subsidiaries, VLC, a pioneer in the development of video lottery terminals and central control system software and related services, and AWI, its on-line lottery subsidiary, has provided video and on-line lottery services and products in Montana, South Dakota, Washington, Oregon, Minnesota, Delaware, Louisiana, New York, Rhode Island, Pennsylvania, Florida, Iceland, Norway; the Canadian provinces of New Brunswick, Newfoundland, Nova Scotia, Prince Edward Island and Alberta; Victoria, Australia; and has been authorized to operate by the Western Canada Lottery Corp. and the Capital and Western Regional Off-Track Betting Corp. in New York. Video Lottery Technologies Inc. common stock is traded on the NASDAQ National Market System under the symbol VLTS. For more information on Video Lottery Technologies Inc., via facsimile at no cost, simply dial 1-800-PRO-INFO and enter company code number 165. -0- 10/16/92 /NOTE TO EDITORS: Mr. Bower is from Atlanta/ /CONTACT: Damian Greco, senior vice president of corporate development of Video Lottery Technologies, 406-585-6600, or Audrey Lowe of FRB, 312-266-7800/ (VLTS) CO: Video Lottery Technologies Inc ST: Montana IN: TLS SU: PER
LD -- NY092 -- 1235 10/16/92 20:50 EDT
|Printer friendly Cite/link Email Feedback|
|Date:||Oct 16, 1992|
|Previous Article:||STATEMENT FROM DAVID KOCH, EXECUTIVE VP KOCH INDUSTRIES, REGARDING MICHIGAN CITIZENS COMMITTEE AGAINST TERM LIMITATIONS|
|Next Article:||AUTO INDUSTRY PATTERN PRINCIPLES ATTAINED IN CAMI TENTATIVE SETTLEMENT|