Vending Technologies Continues to Deliver

Vending Technologies Continues to Deliver

Australian Sales Represent 47 Percent of Surplus

Vending Technologies Limited (NZSE: VTL), today announced a net operating surplus of $2.1 million for the six months to 30 September, 14 percent ahead of the surplus for same period last year.

The half year result, the company's first as a licensor of 24seven vending systems, was achieved on total operating revenues of $10.1 million, up 26 percent on last year.

Sales into the Australian market represented 32 percent of operating revenues and 47 percent of operating surplus for the period.

This strong performance follows a net surplus for the twelve months to 31 March 2002, which was 35 percent ahead of the company's November 2000 listing prospectus.

Condensed statement of financial performance (unaudited)

Six months ended 30 September 2002 (Millions) 2002 2001

Operating Revenues 10.1 8.0

Operating Surplus Before Tax 2.1 1.8

Operating Surplus After Tax 2.0 1.8 EPS 6.7¢ 6.1¢

"This is an excellent result and further reflects the company's transformation from a vending machine operator into an international vending systems licensing company. It also confirms our ability to achieve profitable growth based on licensing models established over the last eighteen months," said Chairman Dr Richard Janes.

"VTL's growth strategy continues to be based around purchasing quality food and drink vending equipment and installing our proprietary control technology. Master Licensees and their independent operators then roll out the 24seven convenience branded programme in what is still, globally, a high growth market," says Dr Janes. "Our proven model, systems and support allow us to attract experienced and committed master licensees, who operate their own businesses under the 24seven brand."

"We have continued to invest in product category management and in further enhancing our technology platform. In addition to state-of-the-art capability in on-line management, this now provides electronic purchasing capability.

"The recent appointment of COO Grant Stapleton, a former General Manager of award-winning franchisor Bakers Delight, has also added further expertise and experience to an already skilled management team.

"Our plans to expand into Australia have gone well and we have achieved a national distribution footprint in that market.

"We now have seven Master Franchisees in Australia and New Zealand and have the capability to expand substantially beyond this in the next 18 months," he added.

About Vending Technologies Limited

Vending Technologies Limited supplies and operates electronically enhanced food and beverage vending machines throughout Australasia. Established in 1997, the company has transformed from a vending machine operator into an international vending systems licensing company under its 24seven programme.

The company has developed a proprietary computerised management system to enable tracking of all transactions, with complete revenue accountability and the ability to monitor the performance of each machine from remote locations.

Vending Technologies' independence means it has a network of long-term alliances with leading suppliers of major branded convenience food and beverages offering consumers an extensive choice of leading brand snacks, meal replacements and drinks.

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