Cadmus On Track To Meet Listing Profile Target

Auckland - 3 August 2001: Payment solutions and data management services provider, Cadmus Technology Limited (NZSE: CTL) today advised the market that preliminary results for the fourth quarter, ended 30 June 2001, indicate that the company will meet the operating profit forecast in last year’s listing profile. The company is currently completing its audited accounts and expects to announce an audited full year result by the end of August.

Highlights and milestones for Q4 include:

- Completion of a successful trial of the world’s first debit / credit domestic payment terminal system (POS Power)

- Supply and support agreement with WestpacTrust

- Signing of the company’s first international agreement - to supply over 1,000 credit card and EFTPOS terminals to PaySys (M) SDN BHD in Malaysia

- Acquiring the EFTPOS arm of GDC Communications Limited

- Securing an agreement to install SmartTaxi terminals in Gold Band’s fleet

(Christchurch based)

- ETSL certification and approval for the Cadmus developed EFTEL 350 EFTPOS terminals in NZ.

“Our fourth quarter results have been achieved on market share growth within New Zealand and the benefits of the relationships and sales we have made with major corporates,” says Cadmus Managing Director, Ian Bailey.

“The potential for us to continue our rapid growth is well within our reach as merchants, banks and other corporates in the Asia Pacific region recognise the advanced capabilities of our payment products and the unique advantages they bring. With several new products undergoing and achieving bank certification, we believe there is a significant opportunity for Cadmus to accelerate expansion into the region and to related markets in the very near future.”

The rapid uptake of Cadmus products in the Asia Pacific region has led to a sizeable increase in the company’s product orders over the last three months with new opportunities continuing to be developed for both the local and international markets.

“Meeting the growing demand for our recently launched payment products has required us to increase our parts inventories to provide for the manufacturing of products,” adds Mr Bailey. “This has led to a greater cash requirement, which the Board is monitoring closely to ensure the company continues to manage its growth prudently, while still remaining responsive to international opportunities. There is however a complementary margin improvement which compensates for the use of these funds, which will flow to the bottom line over time.”

Additionally Cadmus has released its EFTEL350 EFTPOS terminal into the NZ market. This product is a significant development as it represents the first approved merchant based EFTPOS terminal that has been both developed and manufactured in New Zealand.

Since listing Cadmus has also entered into agreements with Trustpower - a 50/50 JV called POS Power Limited, a 50/50 JV with E-Smart Card Technologies Limited and also acquired a 4.55% strategic holding in Insight Technologies (Asia Pacific) Pty Limited.

ENDS

About Cadmus

Cadmus Technology Limited is an end-to-end payment solution and data management services provider. It operates a number of unique interfaces into the NZ EFTPOS infrastructure enabling the capture and processing of information relating to customer spend, as well as the processing of in-house and private label cards.

Clients include the Vodafone Warriors Rugby League, Bartercard, Stihl, Trustpower, and many of the major motor vehicle importers and distributors.

For more information, please visit www.cadmus.co.nz

© Scoop Media