[04/25/06]
VendingData Corporation, announced that it has entered into a binding Letter of Intent to acquire the manufacturing operations and all remaining intellectual property of Melbourne, Australia based Dolphin Advanced Technologies Pty Ltd., as well as its wholly-owned subsidiaries (collectively, "Dolphin Products"). Under the terms of the proposed transaction, Dolphin Products will mainly receive stock for its company, in addition to a small amount of cash. Dolphin Product's CEO, William Purton, will be given a seat on VendingData's Board of Directors. The transaction is expected to close during the third quarter of 2006 and is subject to legal and regulatory due diligence. Details of the acquisition will be forthcoming in an SEC Form 8-K to be filed by VendingData Corporation at the market close .
In a move designed to re-affirm VendingData's on-going commitment to achieving market leadership by expanding its business model, CEO Mark Newburg commented on the strategic step, "Our goal has been consistent; we are intent on adding to our product line, building upon our valuable patented IP and establishing strategic partnerships. The Dolphin Products acquisition provides us with a potential flow of future intellectual property, while now delivering the most promising product, the Dolphin High Frequency RFID Chip, this company has ever launched. We have had a mutually beneficial working relationship with Dolphin for quite some time, and this acquisition is the next logical step as we continue to work together to develop products for the industry. I look forward to Bill joining our Board and becoming a key member of the team as we map the future direction for the company."
Over the past ten years, Dolphin Products has been designing and manufacturing casino chips for the casino industry and has become one of the five largest international suppliers of chips to casinos such as Crown, Star City, Grovenor and Stanley Group. Dolphin also has designed key products included in the VendingData portfolio, such as DeckChecker, Dolphin RFID Casino Chips, ChipWasher and the DeckSetter, planned for 2007 release. Dolphin Managing Director William Purton commented on the move saying, "I am excited about this acquisition and the opportunities it presents. I believe Dolphin's core business will integrate smoothly with VendingData providing significant operating efficiencies and by joining the Board, I will be able to focus on creating new technologies to enhance VendingData's product range."
About Dolphin Products, LLC
Dolphin Products commenced operations 60 years ago and has been under the same management and ownership for the past 18 years. The company specializes in producing high-precision plastic injection moulded components as well as the manufacture of the associated tooling. Dolphin serves a diverse range of market sectors from medical to industrial. In addition to its well established position as a leading chip manufacturer in the gaming industry, Dolphin also boasts major automotive brand clients such as General Motors, Toyota and Autoliv.
In 1994, Dolphin began designing and manufacturing various gaming products for the Australian market. Initially the company produced chip racks, followed by wheel checks and finally, a full range of value chips. In 1999 Dolphin lodged a patent to install an RFID (radio frequency identification device -- i.e. microchip) under the label of a gaming chip or token. This patent was granted in 2004.
Over the past 10 years, Dolphin has produced tens of millions of chips, which it has sold locally as well as exported to virtually every country, with the exception of the USA. The company employs 70 staff and operates from a very modern facility covering two acres, in Melbourne, Australia.
About VendingData Corporation
VendingData Corporation is a Las Vegas-based developer, manufacturer and distributor of innovative products for the gaming industry. The company's products include the Deck Checker, PokerOne and Random Ejection Shuffler lines, which are installed in various casinos throughout the United States. VendingData's newest innovative products include the ChipWasher and high-frequency RFID Casino Chips. The company's customers include mega-gaming corporations such as Caesars Entertainment, MGM Mirage, Station Casinos, and Boyd Gaming as well as major casinos such as The Venetian, Foxwoods Resort Casino and the world's largest poker room, Commerce Casino. International customers include casinos in Argentina, China, Columbia, Korea, Macau, Malaysia, Peru, United Kingdom, and Uruguay. Visit the VendingData Web site at http://www.vendingdata.com.
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