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American Coin Merchandising Announces Q1 Results

3 May 2001

BOULDER, Colorado – (Press Release) -- May 3, 2001 -- American Coin Merchandising, Inc., ``ACMI,'' (Nasdaq: AMCN - news) today announced financial results for the first quarter ended March 31, 2001.

For the first quarter of 2001, revenue rose 9.2% to $34.4 million compared to $31.5 million for the same period in 2000. General and administrative expenses for the quarter were $6.4 million, or 18.6% of total revenue, as compared to $6.4 million, or 20.3% of total revenue for the same period last year. EBITDA increased 13.0% to $5.9 million compared to $5.3 million for the comparable period in 2000 (EBITDA is a measure of operating cash flows which represents operating earnings before interest, income taxes, depreciation, amortization and non-cash expenses).

Operating earnings of $2.2 million for the quarter are comparable with operating earnings generated for the same period in 2000. Cash earnings for the first quarter of 2001 and 2000 were $587,000, or $0.09 per diluted share. Net earnings for the quarter were $240,000, or $0.04 per diluted share, compared to net earnings of $240,000, or $0.04 per diluted share for the same period last year.

``We have now experienced five consecutive quarters of growth in revenue on a comparable quarterly basis and we continue to benefit from our efforts to control the level of our general and administrative expenses. We remain focused on improving the financial performance of our amusement vending equipment on location and identifying and realizing potential margin improvement opportunities. While we have made steady progress, we continue to review all areas of our operations for potential improvements,'' said Randall J. Fagundo, President and Chief Executive Officer.

2001 Outlook

Based on its first quarter financial results, the Company continues to expect between 500 and 1,000 net new placements of amusement vending equipment for 2001.

Vending revenue for the year is expected to be between $138 and $143 million and EBITDA of $24 to 26 million.

The Company expects net payments on its credit facility and other debt for the year of $8 to $10 million. The Company also expects general and administrative expenses to be 18 to 19 percent of total revenue.

For the second quarter of 2001, the Company expects vending revenues of between $33 and $35 million, representing year-over-year growth of 9 to 16 percent.

The Company also expects EBITDA growth of 7 to 10 percent, compared to the second quarter of 2000 and the general and administrative expense percentage to be 18 to 20 percent of total revenue.

A primary key to the financial success of the Company is the weekly revenue generated per machine, which has a history of fluctuating. The average weekly revenue generated per machine may decline or fluctuate in the future, which could prevent the Company from achieving its financial performance goals.

The Company may not be able to grow at historical rates or at all. The Company's ability to generate increased revenue and achieve higher levels of profitability will depend upon its ability and the ability of its franchisees to place additional machines as well as to maintain or increase the average financial performance of the machines.

The Company's ability to place additional machines depends on a number of factors beyond the Company's control, including general business and economic conditions. Installation of additional machines will also depend, in part, upon the Company's ability to secure additional national and regional retail accounts and to obtain approval to place additional machines in individual locations of such accounts.

The Company, its franchisees and their suppliers also may be unable to place and adequately service additional machines, which could have a material adverse effect on the Company's business, financial condition and results of operations.

American Coin Merchandising, Inc., headquartered in Boulder, Colorado, and its franchisees own and operate more than 26,000 coin-operated amusement vending machines throughout the United States. Over 14,000 of these machines dispense plush toys, watches, jewelry, novelties and other items. The Company's distinctive amusement vending machines are placed in supermarkets, mass merchandisers, bowling centers, bingo halls, bars, restaurants, warehouse clubs and similar locations.

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