SOURCE: Cash Technologies, Inc.

February 28, 2008 15:40 ET

Cash Technologies Subsidiary Agrees to Acquire Champion Parts, Inc. Assets

LOS ANGELES, CA--(Marketwire - February 28, 2008) - Cash Technologies, Inc. (AMEX: TQ) ("Cash Tech") announced today that its newly formed CPI Holdings, LLC subsidiary ("CPI") has entered into an agreement with PNC Business Credit, Inc. ("PNC") to purchase certain assets of Champion Parts, Inc. (the "Champion Assets") for $3.16 million which have a book value of approximately $13.6 million. Champion was the leading remanufacturer of automotive fuel system components in the U.S. before its bankruptcy in October, 2007.

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. The Champion bankruptcy caused Cash Tech to write off the approximate $8 million balance of the Champion note receivable, but has created the opportunity to re-acquire the Tomco and other Champion assets at a substantial discount.

The accretive transaction will generate extraordinary (non-cash) income, and an as-yet undetermined increase in shareholder equity. 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 can be distributed through Champion's extensive retail network.

Bruce Korman, CEO of Cash Technologies, stated, "We're pleased to have come to an agreement for the purchase of these assets. We believe that Champion has tremendous potential as a market leader in the auto products industry. This is also an important step in our efforts to recover from the $8 million write-off of our note receivable from Champion."

The closing of the transaction, scheduled for March 25, 2008, is subject to certain conditions, including the completion of financing being arranged by Cash Tech and the UCC sale being conducted by PNC. The final purchase price may be adjusted based on inventory variances. There can be no assurance that the transaction will be completed.

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, failure to complete expected financing, 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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