SOURCE: Cash Technologies, Inc.

May 06, 2008 10:26 ET

Cash Technologies Subsidiary Acquires Champion Parts Assets

LOS ANGELES, CA--(Marketwire - May 6, 2008) - Cash Technologies, Inc. (AMEX: TQ) ("Cash Tech") announced today that its CPI Holdings, LLC subsidiary ("CPI") has completed its acquisition of certain assets of Champion Parts, Inc. (the "Champion Assets") from PNC Business Credit, Inc. ("PNC") for $2.97 million which have a book value of approximately $12.1 million. Champion was the leading remanufacturer of automotive fuel system components in the U.S. before its bankruptcy in October 2007. The purchase of the Champion Assets will permit CPI to create a new business using the venerable Champion name, products, staff, facilities and national retail distribution network without assuming any liabilities of the bankrupt entity.

Cash Tech first entered the automotive products market in November 2004 when its TAP Holdings, LLC subsidiary acquired certain assets of Tomco Auto Products, Inc. for $2.5 million. TAP sold the Tomco assets in November, 2006 to Champion for approximately $10.8 million. Champion's October 2007 bankruptcy, caused by an unresolved default in its financing facility with PNC, created the opportunity for CPI to acquire the combined Tomco and Champion assets at a substantial discount.

The accretive transaction will generate extraordinary (non-cash) income and an as-yet undetermined increase in shareholder equity. The completion of this transaction is also a requirement of the Company's plan to regain compliance with the Amex listing qualifications.

CPI has hired the former successful (pre-bankruptcy) management of Champion to operate the business. In addition, CPI intends to expand the Champion product line to include innovative fuel-efficiency products that will be marketed under the brand name Champion Performance and distributed through Champion's extensive retail network consisting of thousands of stores in the U.S.

Bruce Korman, CEO of Cash Technologies, stated, "I'm delighted that we have been able to turn the problem created by the Champion bankruptcy into an opportunity to substantially increase shareholder equity and other fundamentals. While Champion's core business produced profitability for the nearly ten years prior to its bankruptcy, we believe that its nationally recognized brand name and retail presence are perhaps its greatest assets and can be leveraged to successfully deliver new fuel-efficiency and other desirable products into the auto products market."

Matters discussed in this release include forward-looking statements within the meaning of the "Safe Harbor" provisions of the PSLRA that involve risks and uncertainties, and actual results may be materially different. Factors that could cause actual results to differ include revenues not reaching expected levels, unexpected competition within the automotive products industry, anticipated improvements in operating costs and net operating margins not being realized, risks related to management and labor, activity levels in the securities markets and other risk factors disclosed in Cash Tech's reports to the Securities and Exchange Commission, including its Forms 10-QSB and Forms 10-KSB on file with the SEC.

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