EXHIBIT 99.1
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CONTACT: Leonard Carr
Sr. Vice President
713-783-8200
lcarr@tidelmail.com
FOR IMMEDIATE RELEASE
TIDEL CONCLUDES FIRST RECOVERY FROM CREDIT CARD CENTER
HOUSTON, TEXAS -- September 27, 2001 -- Tidel Technologies, Inc. (Nasdaq: ATMS)
today announced that it has successfully completed the first step toward
recovering a portion of its losses related to the bankruptcy of Credit Card
Center ("CCC"), formerly Tidel's largest customer. In accordance with an
agreement approved by the Federal Bankruptcy Court, Tidel and NCR Corporation
("NCR") have jointly acquired the entire inventory of Automated Teller Machine
("ATMs") equipment owned by CCC. The inventory consists of more than 4,000 ATMs,
together with related parts and supplies, originally manufactured by Tidel, NCR
and several other companies, which is principally stored in approximately 20
locations throughout the United States.
In a transaction that closed September 24, 2001, Tidel and NCR paid a total of
$8,000,000 for such inventory, consisting of a cash deposit by Tidel of
$1,000,000 into escrow as well as equal credits against accounts receivable due
to Tidel and NCR from CCC. The cash portion of the purchase price will be
definitively determined after resolution of third party claims and liens against
CCC that might ultimately have priority over the claims of Tidel and NCR. Based
on information available at this time, Tidel believes that the final allowed
claims and liens will aggregate less than $1,000,000, and in that event, the
difference will be refunded from escrow to Tidel.
Pursuant to a separate but related agreement between Tidel and NCR, NCR paid
Tidel $1,032,300 to purchase certain ATMs manufactured by NCR which were
included in the inventory jointly acquired from CCC at 10 of the storage
locations. NCR will pay Tidel up to an additional $114,700 of retainage in 30
days subject to certain conditions. The inventory purchased from Tidel included
650 new NCR ATMs from Tidel along with approximately 1000 additional NCR ATMs
that required replacement of parts or refurbishing. Tidel is also entitled to a
contingent payment not to exceed $400,000 upon resale of the new ATMs by NCR.
Tidel is negotiating to sell the NCR inventory recovered from the remaining 10
or more locations to NCR in October 2001.
According to James T. Rash, Chairman and CEO of Tidel, "A final determination of
the inventory quantities purchased cannot occur until receipt of the goods by
Tidel from the various storage locations. We believe, however, that Tidel will
recover between 1,500 and 2,000 of its own ATMs, or approximately one-third of
the units not paid for by CCC prior to its collapse. From an accounting
standpoint, Tidel will add its ATMs and parts to finished goods inventory at
Tidel's cost basis, less any restocking and refurbishing costs. All of the
inventory acquired by Tidel that was manufactured by companies other than Tidel
and NCR may be sold by Tidel in privately negotiated transactions."
Rash added, "Although both of these transactions were important steps in Tidel's
efforts to recoup losses from the CCC situation, they are merely the first
steps. We are continuing to vigorously pursue additional recoveries of assets
from CCC which represent a significant portion of our collateral package."
Tidel Technologies, Inc. is a manufacturer of automated teller machines and cash
security equipment designed for specialty retail marketers. To date, Tidel has
sold more than 30,000 retail ATMs and 115,000 retail cash controllers in the
U.S. and 36 other countries. More information about the company and its products
may be found on the Internet at www.tidel.com.
"SAFE HARBOR" DISCLAIMER UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995: THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS, INCLUDING
STATEMENTS AS TO ANTICIPATED OR EXPECTED RESULTS, BELIEFS, OPINIONS, AND FUTURE
FINANCIAL PERFORMANCE. THE FORWARD-LOOKING STATEMENTS ARE BASED ON CURRENT
EXPECTATIONS AND ASSUMPTIONS AND INVOLVE RISKS AND UNCERTAINTIES THAT MAY CAUSE
THE COMPANY'S ACTUAL EXPERIENCE TO DIFFER MATERIALLY FROM THAT ANTICIPATED.
ESTIMATES ARE BASED ON RELIABLE INFORMATION AND PAST EXPERIENCE. HOWEVER,
OPERATING RESULTS ARE AFFECTED BY A WIDE VARIETY OF FACTORS, MANY OF WHICH ARE
BEYOND THE CONTROL OF THE COMPANY. FACTORS INCLUDE, BUT ARE NOT LIMITED TO, THE
LEVELS OF ORDERS WHICH ARE RECEIVED AND CAN BE SHIPPED IN A QUARTER; CUSTOMER
ORDER PATTERNS AND SEASONALITY; COSTS OF LABOR, RAW MATERIALS, SUPPLIES AND
EQUIPMENT; TECHNOLOGICAL CHANGES; COMPETITION AND COMPETITIVE PRESSURES ON
PRICING; AND ECONOMIC CONDITIONS IN THE UNITED STATES AND WORLDWIDE.
ADDITIONALLY, FACTORS AND RISKS AFFECTING OPERATING RESULTS INCLUDE THOSE
DESCRIBED IN THE COMPANY'S REGISTRATION STATEMENTS AND PERIODIC REPORTS FILED
WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION.
