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VendingData to Expand Product Line

Chip Washer is an automated chip washing machine. In the past, the most "sophisticated" approach to cleaning chips involved placing the chips in a cloth bag that was run through a cycle in a conventional clothes washing machine, a process that was inefficient and costly. Dolphin's Chip Washer (CWM-BT) is highly cost effective and requires very little on-going maintenance. A prototype machine of the latest design has been in beta testing in Crown Casino, Melbourne, Australia since October 2004. Currently the Chip Washer is concluding a value-engineering analysis as well as preparing documentation to enable routine production of the machine. VendingData(TM) plans to begin manufacturing of the Chip Washer in China during fourth quarter 2005.

Deck Setter® automates the process to reorder mixed card decks, which is a legislative requirement in many jurisdictions. Currently re-ordering or setting decks is performed manually by casino staff or is sub-contracted to sheltered workshops or similar institutions. The current cost to the casino for this process is approximately $0.25 - $0.40 per deck. Upon installation at a casino venue, it is estimated that the Deck Setter® will pay for itself within the first 120 days, based on average operational use. VendingData(TM) plans to begin manufacturing of the Deck Setter® in China by August 2006.

William Purton, Managing Director; of Dolphin Products commented, "It is our view that VendingData(TM) has excellent qualifications to cost efficiently manufacture and effectively deliver the Chip Washer and Deck Setter® to market. In addition to their state-of-the-art China manufacturing operations, the company's existing staff and distribution partnerships together with its renewed focus on service, makes them a valuable partner."

Mark Newburg, executive director of VendingData(TM) Corporation, added, "It is our goal to quickly respond to sensible opportunities that build value in our Company and remain synergistic with our focus on the table game side of the gaming industry. The Chip Washer and Deck Setter® product lines provide VendingData(TM) the opportunity to expand its business with unique products that have little, if any, competition and command high margins, strong recurring revenue, and the prospect to better serve our clients with cost effective, operationally beneficial products. It is our expectation the Chip Washer will be available for sale early in the first quarter of 2006 and the Deck Setter® will be available in the third quarter of 2006."

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