SOURCE: Cash Technologies, Inc.

March 11, 2008 15:45 ET

Cash Technologies Subsidiary Agrees to Acquire Turbocharger Assets

LOS ANGELES, CA--(Marketwire - March 11, 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 Turbomotive, Inc. and Robert McKeirnan, its president ("Turbomotive"), to purchase certain assets related to Turbomotive's turbocharger technology for $1.75 million, of which $100,000 will be paid in cash and $1.65 million will be paid in preferred stock of Cash Technologies. McKeirnan is a top turbocharger developer, holds numerous patents in bearing and other mechanical technologies and formerly operated a leading supplier of aftermarket turbochargers.

Cash Technologies previously announced its plan to acquire the assets (and restore the operations) of Champion Parts, Inc., the largest fuel-system components remanufacturer in the U.S. prior to its bankruptcy, and integrate fuel-efficiency products to take advantage of Champion's extensive retail network. The first of such products are the Turbomotive turbochargers, which are based on patented technology that management believes makes the products the most efficient and reliable available.

The market for so-called "green" automotive products that increase fuel efficiency and reduce toxic emissions is large and rapidly growing. Tougher regulatory standards, higher fuel prices and popular demand for lower-carbon-footprint vehicles have made green products a dynamic sector and continued expansion is likely into the foreseeable future. Turbochargers increase fuel efficiency by 25% (60% for diesel engines), reduce emissions by 25%, increase engine power by 50% and keep the engine cleaner which reduces maintenance costs. Most vehicle manufacturers are now designing cars and trucks that include turbos, allowing engines to be smaller, lighter and meet tougher environmental standards while improving performance.

The turbo market reached approximately $5 billion last year, with more than 17 million units produced, and is expected to increase by more than 50% within 5 years. Demand for turbochargers is international and a turbo unit manufactured for a foreign car or truck can be sold anywhere in the world where the same engine is used. OEM and international markets can multiply the turbocharger sales potential of Champion. The emerging use of alternative fuels will also increase the demand for turbochargers.

By leveraging Champion's manufacturing capabilities, recognized brand name and extensive national retail distribution which reaches more than 20,000 stores, management believes that Champion is the ideal conduit for delivering advanced products to the market and generating substantial sales.

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 Champion assets at a substantial discount and exploit Champion's retail relationships in order to distribute new products.

The assets being acquired consist of patents, purchase orders, manufacturing processes, other intellectual property and tooling. The preferred stock which constitutes $1.65 million of the Turbomotive purchase will have a conversion price equal to the market price of Cash Tech's common stock at the time of conversion, with a floor of $0.75 per share and a ceiling of $1.50 per share. CPI also intends to hire the Turbomotive principals, including McKeirnan, to operate the turbo assets and oversee manufacturing and distribution.

Bruce Korman, CEO of Cash Technologies, stated, "This is the first of several green products that we intend to produce and distribute through Champion and is an important part of our Champion strategy. Through this channel, the sale of efficient and ethical products can have enormous market potential and great upside for Cash Tech shareholders."

The closing of the transaction, scheduled to take place on or about April 1, 2008, is subject to certain conditions, including the completion of the Champion acquisition. 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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