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Nevada court affirms Shuffle Master ruling

LAS VEGAS, Nevada –- (PRESS RELEASE) -- VendingData(TM) Corporation (AMEX: VNX), announced today that the United States District Court for the District of Nevada entered an order that adopts and affirms a ruling by the Magistrate Judge in favor of VendingData and against Shuffle Master in a patent infringement lawsuit brought by Shuffle Master against VendingData. The Magistrate Judge, in an opinion now adopted by the District Court, agreed with VendingData's construction of certain patent claims that Shuffle Master has asserted against VendingData's innovative PokerOne(TM) shuffler product. VendingData's President & CEO Mark Newburg stated that he believes the District Court's order entered today "drives a stake in the heart of Shuffle Master's case."

Shuffle Master's setback today follows previous setbacks in the case. Although Shuffle Master was initially successful in obtaining a preliminary injunction against the sale of VendingData's PokerOne(TM) shuffler, VendingData persuaded the United States Circuit Court for the Federal Circuit to stay the preliminary injunction. The Federal Circuit, after full briefing and oral argument, then vacated the preliminary injunction in its entirety in December 2005.

The reversal of Shuffle Master's preliminary injunction and today's order adopting VendingData's claim construction leave Shuffle Master exposed to liability on a $3 million bond it posted to secure the preliminary injunction. VendingData intends to vigorously pursue collection of the $3 million bond and other damages from Shuffle Master.

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