Vending Technologies Growth Strategy On Target

Vending Technologies Growth Strategy On Target At Half Year

Australian contracts underpin second half performance

AUCKLAND, 1 December 2000 – Smart vending machine operator, Vending Technologies Ltd (NZSE:VTL), today announced a first half result that leaves it comfortably on track to achieve its forecast full year profit after tax of $3.14 million.

For the six months ended 30 September 2000 the company reported an unaudited net profit before tax of $1.8 million, up 269 percent on an unaudited profit of $0.7 million for the corresponding period last year.

The result was achieved on revenues of $8.9 million, compared with revenues of $2.4 million (up 365 percent) for the corresponding period last year.

Condensed statement of financial performance
(unaudited)

6 months ending 30 September 2000
(millions)

2000 1999
Total Revenues $8.9 $2.4
Net profit before tax $1.8 $.7
Eps 26.3* 20.9¢**

* Based on weighted average including 24.0 million shares issued on 11 September 2000
** Based on 2.5 million shares on issue as at 30 September 1999

“While the result is, as you would expect, in line with the recent prospectus issued, it clearly demonstrates the company’s ability to achieve sustainable growth,” said Chairman Richard Janes. “It is particularly gratifying to achieve such a sound financial result during a period when the company was also making substantial investments in people and systems and opening new markets.”

The company expects to achieve a further lift in both revenues and earnings over the second half as demand increases over the summer months. “People get thirsty over summer, causing soft drink sales to peak between November and February,” said Janes. “That gives the Directors confidence that the company will comfortably meet its full year earnings forecasts.”

The company’s expectations of future revenue growth have been further enhanced by its successful entry into the Australian market. In October Vending Technologies secured a contract, worth an estimated A$6.5 million over 3 years, as preferred supplier for food and beverage vending services to the Australian Construction, Forestry, Mining and Energy Union (CFMEU). Under the agreement, Vending Technologies will provide snack and beverage vending services to 350 CFMEU construction sites throughout the State of Victoria.

The company also recently won two additional Australian preferred supplier contracts, worth a total of A$1.6 million over three years, which will see it supplying vending machines to the Queensland TAFE, and to Sales Force One.

About Vending Technologies Limited
Vending Technologies Limited supplies and operates electronically enhanced food and beverage vending machines throughout Australasia. Established in December 1997, the company manufactures, sells, maintains and services vending machines.
The company has developed a proprietary computerised management system to enable tracking of all transactions, with complete revenue accountability and the ability to monitor the performance of each machine from remote locations.
Vending Technologies has a network of long-term alliances with leading suppliers of major branded convenience food and beverages. It plans to have more than 4700 machines operational in Australia and New Zealand by March 2002.

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