Checkmate Announces $270,000 Contract With Eagle Hardware & Garden.

ROSWELL, Ga.--(BUSINESS WIRE)--Nov. 19, 1997-- Checkmate Electronics, Inc. (Nasdaq-NMS Symbol: CMEL) today announced the roll out of a new point-of-sale solution for the rapidly expanding Renton, Washington-based Eagle Hardware & Garden chain of Home Improvement Stores (Nasdaq-NMS Symbol: EAGL). The system will be fully implemented by the end of 1997.

Combining both check reading and electronic signature capture with credit card processing at check-out platform, the new POS system will act as a strong deterrent against check and credit card fraud.

Mr. Ron Maccarone, Executive Vice president - Finance and Chief Financial Officer, says: "Using Checkmate's systems we are implementing a process which provides a faster, more convenient check-out experience for our customers. It also provides the ability to identify check fraud at the point of entry to the system. By capturing data electronically and storing it on our corporate host, we can retrieve transaction details within minutes. Based on the projected reduction in check fraud and credit card charge backs, the system will rapidly pay for itself."

Gregory A. Lewis, Checkmate's president and chief operating officer, says: "We are pleased to add Eagle Hardware & Garden to our growing list of merchants whose focus on customer service with fraud prevention uses the full functionality of Checkmate's technologies. Many more of our customers are combining check and electronic signature with card processing at the point-of-transaction. These merchants will be able to improve cashier productivity, reduce fraud, and be ready to switch to new electronic processing methods like check truncation without any disruption to their normal business activities.

Eagle Hardware & Garden use electronic signature and capture software provided by North Carolina-based, Smokey Mountain Technologies, Inc. All signatures are captured electronically on Checkmate's CM 2020 signature capture pads and are then stored on the corporate host for retrieval at any time.

Eagle Hardware & Garden operates 30 warehouse home improvement centers in Alaska, Colorado, Hawaii, Montana, Oregon, Utah and Washington. The Company's home centers average 125,000 square feet of retail selling space and feature 65,000 products under its "More of Everything"(R) merchandising philosophy.

Checkmate Electronics, Inc., supplies innovative electronic payment solutions for distributors, retailers, and financial service institutions. Checkmate's products include point-of-sale software and terminals, comprising check readers, MICR analyzers, payment authorization and point-of-transaction promotion/loyalty systems, signature capture devices and electronic transaction processing equipment, all packaged in integrated and cost justified solutions.

As a full service provider, Checkmate also offers professional services including application development, consulting, project management, installation services and TotalCARE support and maintenance. Headquartered in Roswell, Ga., Checkmate Electronics, Inc. has over 185 employees. Visit the Checkmate web site at ckmate.com .

This press release contains forward-looking statements subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. Management cautions that these statements represent projections and estimates of future performance and involve certain risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors including, without limitation, the Company's heavy reliance on check readers in its product mix; the Company's dependence on its limited suppliers and manufacturers of component parts of its products; rapid and significant technological developments that could delay the introduction of improvements in existing products or of new products; the Company's dependence on its proprietary technologies (which may be independently developed by competitors); the Company's dependence on a small number of large retail customers; the potential fluctuation in financial results as a result of the Company's inability to make sales to large customers as well as the volume and timing of bookings received during a quarter and variations in sales mix; competition from existing companies as well as new market entrants; and, the Company's dependence on key personnel.

CONTACT: Checkmate Electronics, Inc.

John J. Neubert

CFO/Senior Vice President

770/594-6000