COIN BILL VALIDATOR, INC. ANNOUNCES THIRD QUARTER RESULTS.

HAUPPAUGE, N.Y.--(BUSINESS WIRE)--AUGUST 15, 1995--COIN BILL VALIDATOR, INC. (NASDAQ/NMS: CBVI), a public Company since February 6, 1995, formally a sub "S" corporation today announced the financial results for its third quarter ended June 30, 1995.

Mr. Hank Kayser, Chief Financial Officer of COIN BILL VALIDATOR, INC., commented "This was a transitional period in which we had to take into consideration a series of non-reoccurring events. Now the Company is positioned for a positive and aggressive growth".

Net sales increased by 40%, or $1,150,195, to $3,996,312 in the three months ended June 30, 1995 from $2,846,117 in the comparative prior year period. This increase is attributable to increased sales of paper currency validators and related paper currency stackers to OEM customers and domestic gaming industry customers. Although sales to international customers increased, the Company's overall sales mix as a portion of total sales shifted toward U.S. sales from international sales compared to the overall mix in the comparative period in previous year. Additionally, a large portion of fiscal 1995 sales within the U.S. were related to products with lower gross margins than had been the case in the previous year.

Gross margin decreased to 24% of net sales, or $971,333, in the three months ended June 30, 1995 from $1,200,545, or 42% of net sales, in the comparative prior year period. As described above, the near term trend toward the U.S. sales in fiscal 1995 adversely impacted the gross margin percentage since sales to U.S. customers are generally made at lower margins than those to international customers. This decrease was also the result of increased overhead costs associated with the Company's new facility, increases in product costs, increased labor costs and costs related to additional overhead, principally in manufacturing.

Operating expenses increased to $986,064, or 25% of net sales, in the three months ended June 30, 1995 from $742,913, or 26% of net sales, in comparative prior year period. This absolute dollar increase was due principally to higher costs associated with the Company's new facility, as well as increased staffing and related payroll costs to support expansion of engineering efforts and increased selling expenses to support marketing activities associated with the Company's aggressive growth strategy.

Net income, as adjusted to reflect income taxes which would have been paid had the Company been a C Corporation for the entire period, decreased to $787 in the three months ended June 30, 1995 from $251,209 in the comparative prior year period due principally to reduced profitability int he current quarter for the reasons outlined above. -0-

                           COIN BILL VALIDATOR, INC
                             STATEMENTS OF INCOME
                                  (unaudited)

                           THREE MONTHS ENDED          NINE MONTHS ENDED
                                JUNE 30,                   JUNE 30,
                         1995             1994       1995             1994

NET SALES               $3,996,312  $2,846,117      $10,128,227  $6,800,973

PRO FORMA NET
 INCOME                 $      787  $  281,209       $  819,970   $ 839,696

PRO FORMA NET
 INCOME PER SHARE       $        0  $     0.13       $     0.32   $    0.42

PRO FORMA WEIGHTED
 AVERAGE COMMON
 SHARES OUTSTANDING      2,750,000   2,000,000        2,567,432   2,000,000

COIN BILL VALIDATOR, INC. designs, manufactures and markets paper currency validators and related paper currency stackers for use in the United States and other countries. Validators process and authenticate paper currencies in a variety of automated machines, including gaming machines and vending machines which dispense products, services, coinage and other currencies. Stackers sold with most validators store validated paper currency, usually in removable cassettes.

CONTACT: Coin Bill Validator, Inc., Hauppauge

HENRY KAYSER, [phone]

or

LEONARDO ZANGANI, [phone]