EXHIBIT 99.02
PRESS RELEASE
TIDEL RECEIVES SENIOR DEBT WAIVER AND AMENDMENT
HOUSTON, Texas -- Sept. 3, 2004 -- Tidel Technologies, Inc. (Other OTC Pink
Sheets: ATMS) announced today that it has entered into a letter agreement
effective August 31, 2004 to amend its senior debt agreements with Laurus Master
Fund, Ltd. ("Laurus"). Pursuant to the terms of the letter agreement, Tidel will
make a payment to Laurus of $400,000 on or before September 17, 2004 towards a
total of $499,238 in past due accrued interest and penalties, and the remaining
$99,238 shall no longer be due and payable immediately but shall be due and
payable at the maturity date. After giving effect to the modifications, the
unpaid principal balance of the senior debt is $6,474,238.
Monthly principal payments will recommence February 1, 2005 in the amount of
$75,000 per month through December 1, 2005, and then in the amount of $225,000
per month thereafter. Further, Tidel will resume monthly interest payments on
October 1, 2005 at the original contract rate of prime rate plus 2%.
With respect to Tidel's requirement to file its past due periodic reports with
the Securities and Exchange Commission ("SEC"), Laurus has extended the deadline
for the filing of Tidel's Form 10-K for the year ended September 30, 2002 until
October, 31, 2004 and the deadline for the remainder of Tidel's other past due
periodic reports until March 31, 2005.
The letter agreement contains waivers from Laurus for the prior defaults of
non-payment and missed SEC filing requirements. Tidel's failure to make the
payment of $400,000 to Laurus on or before September 17, 2004 would constitute
an event of default for non-payment.
In consideration of these modifications, Tidel lowered the conversion price of
the convertible term note and the exercise price of the warrant, in each case,
from $.40 per share to $.30 per share.
Tidel is presently in discussions with Laurus to provide additional working
capital financing for certain new customer contracts. There can be no assurance
that Tidel will be successful in completing such additional financing with
Laurus.
ABOUT TIDEL
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 Internet at
http://www.tidel.com.
PRECAUTIONARY LANGUAGE REGARDING FORWARD-LOOKING STATEMENTS
THIS PRESS RELEASE CONTAINS STATEMENTS 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 COMPANY'S FINANCIAL POSITION AND WORKING CAPITAL
AVAILABILITY, ABILITY TO REPAY ITS INDEBTEDNESS, 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; CHANGES
IN THE COMPANY'S RELATIONSHIPS WITH CUSTOMERS OR SUPPLIERS; ACCEPTANCE OF THE
COMPANY'S PRODUCT AND TECHNOLOGY INTRODUCTIONS IN THE MARKETPLACE; UNANTICIPATED
LITIGATION, CLAIMS OR ASSESSMENTS; THE COMPANY'S ABILITY TO REDUCE COSTS AND
EXPENSES AND IMPROVE INTERNAL OPERATING EFFICIENCIES; THE ECONOMIC CONDITION OF
THE ATM INDUSTRY AND THE POSSIBILITY THAT IT IS A MATURE INDUSTRY; THE FUTURE
TRADING MARKET FOR THE COMPANY'S SECURITIES; AND ECONOMIC CONDITIONS IN THE
UNITED STATES AND WORLDWIDE. TIDEL UNDERTAKES NO DUTY TO UPDATE ANY OF THE
STATEMENTS SET FORTH IN THIS RELEASE.
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