Cadmus Builds On Recent Success

Cadmus Builds On Recent Success

AUCKLAND – Wednesday, 05 November, 2003 – Payment solutions company, Cadmus Technology Limited (NZX: CTL), today announced an unaudited earnings before interest, tax, depreciation and amortisation of goodwill (EBITDA) of $403,000, based on revenues of $3,431,000, for the three months ended 30 September, 2003.

“The level of revenue and positive EBITDA achieved for this period clearly highlights that Cadmus Technology’s growth strategy is on track – and will ultimately enhance shareholder value in a sustainable manner over the course of the coming financial year,” says Managing Director, Ian Bailey.

“Overall, this result, combined with current domestic and international orders, means the Company is well advanced to meeting its targets for the financial year.”

According to the results of a recent international payments industry survey (The Nilson Report, Sept 2003), Cadmus enjoyed the greatest growth and recorded the largest rankings jump of any EFTPOS manufacturer in Asia Pacific – jumping from 26th to 13th. Also the Company is now approaching the Top 10 of Asia Pacific payment terminal manufacturers.

“The results from The Nilson Report validates the Company’s international expansion strategy of exporting technologies proven in the domestic market, into targeted global market segments,” says Mr Bailey. “Moreover, we now have the product range, partnerships distribution channels, manufacturing capacity and financial resources to support continued growth.”

Export growth, however, has not been at the expense of domestic market share. Cadmus Technology’s share of the domestic EFTPOS market is estimated to have increased to between 25 to 30 per cent due to a number of recent sales wins.

“Our focus last year was to be New Zealand’s largest exporter of payment solutions and EFTPOS terminals. We have already achieved this goal, and given the recent domestic and export wins, we are now focusing on consolidating our position in the payment solutions market,” adds Bailey.

Highlights and milestones for the quarter include the confirmation that CET Technologies Pte Ltd (CET), a wholly owned subsidiary of Singapore Technologies Electronics Limited (the electronics arm of Singapore Technologies Engineering – and the largest engineering company listed on the Singapore Exchange), acquired 16 million new Cadmus shares, amounting to a 9.9 percent stake in Cadmus.

Also, Cadmus Technology acquired 100 per cent of the assets from its joint venture metering and bill payment Company, POS Power Limited (from TrustPower Limited), enabling it to protect the Intellectual Property associated with the POS Power ‘EFTPOS@Home’, and market the product both domestically and internationally.

ENDS

About Cadmus Technology

Cadmus Technology Limited (NZSE: CTL) designs, develops and implements innovative point-of-sale payment solutions for merchant businesses worldwide. The company is moving towards being New Zealand’s largest manufacturer and exporter of payment terminals, which it sells into rapidly growing markets internationally. The company offers payment and data management solutions, including EFTPOS and data capture terminals, loyalty programs and customer relationship management solutions. Cadmus also provides end-to-end payment solution and data management services for retail, business payment and transactional processing requirements.

Clients include Bank of New Zealand, TAB, Wellington Combined Taxis, Bartercard Australia Pty Ltd, OnQ Business Systems Pty Ltd, eScience Systems Malaysia and
Paysys (M) SDN BHD.

For more information, please visit www.cadmustechnology.com

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