Cash Systems, Inc. Announces Fourth Quarter and Full Year 2006 Financial Results.

LAS VEGAS -- Cash Systems, Inc. (NASDAQ: CKNN), a provider of cash access solutions for the gaming industry, today announced fourth quarter and full year 2006 financial results.

Fourth quarter 2006 company highlights include:

* Revenue grew 55% to $25.4 million.

* A multi-year contract renewal to provide ATM, check cashing and cash advance services at all seven of the gaming facilities owned by the Seminole Tribe of Florida.

* A new vault cash agreement with Fidelity Bank. The agreement is for a two-year period, with additional one year option renewals.

* Debut of powercash and eCashsystem with eCash checking at G2E Conference in Las Vegas.

* Enhanced contract renewal with the Agua Caliente Band of Cahuilla Indians of Southern California, to include a complete line of cash access services including all-in-1 and check cashing as well as the first ever cashclub installation.

* Completion of the $20 million senior secured convertible note financing.

Fourth Quarter Financial Results

Revenue for the fourth quarter was $25.4 million, an increase of 55%, compared to $16.4 million in the fourth quarter of fiscal 2005. The Company reported a loss from operations of ($544) thousand in the fourth quarter of fiscal 2006 compared to a loss from operations of ($3.4) million in the prior year period. Net loss was ($7.1) million, or ($0.40) per diluted share, compared to net loss of ($2.3) million or ($0.13) per diluted share, in the fourth quarter of 2005.

Fourth quarter 2006 financial results include the following significant items:

* $5.2 million write off of deferred tax assets which is required under accounting rules when there has been a three year cumulative net loss.

Michael Rumbolz, President and Chief Executive Officer of Cash Systems, Inc. stated, "With our current set of product innovations, we are very confident in our technology path, and we are continuing to execute the plan we developed in 2005. From a financial standpoint, we are very excited about the future of the business and we expect 2007 revenue to grow in excess of 20%. Our business is highly scalable with substantial operating leverage and as our new products hit the market and generate incremental revenue, we expect incremental revenue to add materially to profitability."

Fiscal 2006 Financial Results

Revenue for fiscal 2006 was $96.0 million, an increase of 52%, compared to $63.2 million in fiscal 2005. The Company reported a loss from operations of ($6.1) million, compared to a loss from operations of ($5.7) million in the prior year. Net loss was ($11.9) million compared to ($3.8) million in fiscal 2005. The Company reported net loss per diluted share of ($0.68), compared to net loss of earnings per diluted share of ($0.23) in the prior year.

Fiscal 2006 financial results include the following significant and unusual items:

* $2.4 million write off of deferred tax assets. Required per FAS 109 as a result of a three year cumulative net loss;

* $2.4 million in items related to prior processor and bank relationships, including reserves for processor receivables, termination fees, disputed fees and processing errors;

* $0.7 million of stock option expense;

* $0.1 million related to an abandoned software project.

Guidance

The Company currently expects revenue to increase approximately 20% to between $115 million to $120 million in fiscal 2007. The Company's long-term EBITDA (earnings before interest, taxes, depreciation and amortization) margin target is 10% to 12%. Although the Company will not achieve its long-term EBITDA margin target in 2007, the Company does expect EBITDA to be positive in every quarter of fiscal 2007 and the second half of the year should reflect new product introductions and their positive contribution to margins.

Note Financing

On October 10, 2006, the Company completed the private placement of $20 million in senior secured convertible notes ("Notes"). The Company will use the proceeds from the sale of the Notes for repayment of bank debt and for general working capital purposes. Under the terms of the financing, the Notes will have a coupon of 6.50% and will be convertible into shares of common stock of the Company at $8.00 per share. As part of the financing, the Company issued warrants to purchase 312,500 shares of common stock at $8.00 per share.

Earnings Conference Call

The Company will conduct a conference call to discuss its fourth quarter and full year 2006 financial results on Thursday, March 15, 2007 at 5:00 p.m. ET. A webcast of the call will be available by visiting the investor relations section of the company's website at http://www.cashsystemsinc.com/ir. The call can also be accessed live over the phone by dialing [phone] or for international callers by dialing [phone]. A replay of the call will be available one hour after the call and can be accessed by dialing [phone] or [phone] for international callers; the pin number is 7697994. The replay will be available from March 15, 2007 through March 22, 2007.

About Cash Systems, Inc.

Cash Systems, Inc., located in Las Vegas, with additional offices in San Diego and Minneapolis, is a provider of cash-access and related services to the retail and gaming industries. Cash Systems' products include its proprietary cash advance systems, ATMs and check cashing solutions. Please visit http://www.cashsystemsinc.com for more information.

This press release may contain forward-looking statements, including the Company's beliefs about its business prospects and future results of operations. These statements involve risks and uncertainties. Among the important additional factors that could cause actual results to differ materially from those forward-looking statements are risks associated with the overall economic environment, the successful execution of the Company's plan of operation, changes in the Company's anticipated earnings, continuation of current contracts, gaming and other applicable regulations, and other factors detailed in the Company's filings with the Securities and Exchange Commission, including its most recent Forms 10K and 10Q. In addition, the factors underlying Company forecasts are dynamic and subject to change and therefore those forecasts speak only as of the date they are given. The Company does not undertake to update any forecasts that it may make available to the investing public.

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