Exhibit 99.1
CONTACT: Leonard Carr
Vice President
713-783-8200
lcarr@tidelmail.com
FOR IMMEDIATE RELEASE
TIDEL REACHES AGREEMENT TO SETTLE
SECURITIES CLASS ACTION LAWSUITS
HOUSTON, Texas-- July 6, 2004-- Tidel Technologies, Inc. (Other OTC: ATMS)
announced today that it has reached an agreement in principle to settle the
securities class action lawsuits that have been consolidated under the caption
George Lehocky v. Tidel Technologies, Inc., James T. Rash, Mark K. Levenick,
James L. Britton III and Jerrell G. Clay; Civ. Act. No. H-01-3741 in the United
States District Court for the Southern District of Texas. The settlement is
subject to a definitive agreement and court approval. The shareholder class will
receive a cash payment of $3 million, which will be funded by Tidel's directors
and officers liability insurance, and a stock payment of two million shares of
Tidel common stock.
In the agreement, Tidel and the officers and directors named in the lawsuits
continue to deny any and all allegations of wrongdoing, and they will receive a
full release of all claims asserted in the litigation.
"While we were prepared to mount a vigorous defense, management concluded that
settlement was in the best financial interest of the Company," said James T.
Rash, Chairman and Chief Executive Officer.
Tidel Technologies, Inc. is a manufacturer of automated teller machines and cash
security equipment designed for specialty retail marketers. More information
about the company and its products may be found on the company's web site at
www.tidel.com.
PRECAUTIONARY LANGUAGE REGARDING FORWARD-LOOKING STATEMENTS
THIS PRESS RELEASE CONTAINS STATEMENTS, INCLUDING THOSE DESCRIBING THE TERMS AND
CONSUMMATION OF THE SETTLEMENT AGREEMENT DESCRIBED ABOVE, THAT CONSTITUTE
FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF SECTION 21(E) OF THE SECURITIES
EXCHANGE ACT OF 1934. THE STATEMENTS ARE SUBJECT TO CERTAIN RISKS AND
UNCERTAINTIES, INCLUDING BUT NOT LIMITED TO THE RISK THAT THE SETTLEMENT MAY NOT
BE APPROVED BY THE COURT, OR MIGHT NOT BE CONSUMMATED FOR OTHER REASONS, AND THE
RISK THAT A SIGNIFICANT NUMBER OF INVESTORS COVERED BY THE SETTLEMENT MAY "OPT
OUT" OF THE AGREEMENT AND PURSUE SEPARATE CLAIMS AGAINST TIDEL AND/OR THE
INDIVIDUAL DEFENDANTS. TIDEL UNDERTAKES NO DUTY TO UPDATE ANY OF THE STATEMENTS
SET FORTH IN THIS RELEASE.
