Axiohm Transaction Solutions Inc. Emerges from Chapter 11.

Business Editors

ITHACA, N.Y.--(BUSINESS WIRE)--June 2, 2000

Axiohm Transaction Solutions, Inc. (OTCBB: AXHMQ) and its U.S. subsidiaries announced that they have successfully emerged from Chapter 11.

As previously reported, the United States Bankruptcy Court in Wilmington, Delaware confirmed the Company's Chapter 11 Plan of Reorganization on April 27, 2000, after the Plan received overwhelming support from the Company's creditors and shareholders. Yesterday, all conditions for consummation of the Chapter 11 Plan were satisfied, including the closing of the Company's new $85.5 million credit facility, provided by a syndicate of lenders led by Lehman Commercial Paper, Inc. The facility includes a $23 million revolving line of credit. The Company emerges as a private company with majority ownership now held by the holders of the Company's previous $120 million of senior subordinated notes.

The Company's new board appointed Marc Pfefferle as the new CEO. Mr. Pfefferle, formerly the Senior Managing Director-Restructuring, joined the Company in December, 1999, shortly after the Company and U.S subsidiaries filed their Chapter 11 cases. As planned, Nicolas Dourassoff, who remained the CEO and President of the Company throughout the Chapter 11 process, will continue as President, reporting to Mr. Pfefferle.

"We are very excited about the future of Axiohm," said Pfefferle. "Our challenge will be to seize the multitude of opportunities available to us around the world. With our debt structure significantly reduced, new liquidity, and on-going cost reduction initiatives, we will be able to build on our heritage of innovation and leverage our strong market position with a stream of highly competitive new products. We are grateful to our customers, vendors, employees and other stakeholders who supported us and helped shorten our stay in Chapter 11. We also want to thank Nicolas Dourassoff for his leadership during the process. His focus on customer relationships and new markets has set the stage for enormous opportunities.

Axiohm also announced the relocation of its corporate headquarters from Blue Bell, Pennsylvania to the Company's existing manufacturing facility in Ithaca, New York.

The Company also announced the hiring of Jack Canty as the new Corporate Controller. Mr. Canty, formerly with Coopers & Lybrand, joins Axiohm from his most recent employer, Gould Pumps, a division of ITT Industries, Inc.

With sales offices in eight countries, distribution relationships in 30 countries and seven manufacturing facilities located in four countries, Axiohm Transaction Solutions, Inc. is among the largest, non-captive designers, manufacturers and marketers of transaction printers in the world. Its transaction printers employ thermal and impact technology and are used to print documents such as point of sale receipts, gaming tickets, and other transaction records. Axiohm also designs and manufactures thermal and impact printer mechanisms, magnetic-stripe and smart-card readers, and bar code printers. Axiohm sells to distributors, end users, OEMs and VARs. The Company sales in 1999 were $ 205 million.

SAFE HARBOR" STATEMENT UNDER THE SECURITIES LITIGATION REFORM ACT OF 1995: This news release contains certain forward-looking statements pertaining to a voluntary bankruptcy petition, the outcome of the company's agreement with certain lenders, the outcome of a reorganization plan filed with the bankruptcy court, future operations and other matters. These statements are subject to uncertainties and other factors. Should one or more of these uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual events or results may vary materially from those anticipated. Such uncertainties and other factors include the outcome of negotiations with the company's lenders with respect to the plan or reorganization and other documents related thereto, approval by the Bankruptcy Court, objections of third parties, as well as the company's ability to maintain market-share, trends in the transaction printer industry, and general economic conditions. The company undertakes no obligation to update any such factor or to publicly announce the results of any revisions to any forward-looking statements contained herein to reflect future events or developments.