Coin Bill Validator announces fiscal year end result.

HAUPPAUGE, N.Y.--(BUSINESS WIRE)--Dec. 28, 1995--Coin Bill Validator, Inc. (NASDAQ/NMS: CBVI), a public company since Feb. 6, 1995, formerly a sub "S" corporation, today announced the financial results for fiscal year ended Sept. 30, 1995. -0-

                            1995            1994
NET SALES               $14,125,443     $9,692,613
PRO FORMA NET INCOME    $ 1,165,950     $1,427,104
PRO FORMA NET INCOME
 PER SHARE              $       .45     $      .71
PRO FORMA WEIGHTED
 AVERAGE COMMON SHARES
 OUTSTANDING(1)           2,613,449      2,000,000

(1) Pro forma net income per share was computed by dividing the
company's pro forma net income (giving effect to a "C" corporation
income tax provision) by the weighted average number of common
shares outstanding during the respective years.  In fiscal 1995, the
pro forma effect of the incremental shares that would need to have
been issued at the proposed initial public offering price to provide
proceeds sufficient to make a $4,000,000 final sub-chapter "S"
corporation distribution has been included in the calculation of the
pro forma weighted average share common shares outstanding.  The
363,636 incremental common shares included in such calculation for
the period from Oct. 1, 1994 to the date of the initial public
offering are not and will not be issued and outstanding for any
purpose and are reflected in the calculation pro forma earning per
share in fiscal 1995 solely to illustrate their effect on a pro
forma basis.
    Net sales increased by 45.7%, or $4,432,830 to $14,125,443 for
the fiscal year ended Sept. 30, 1995 from $9,692,613 in fiscal year
1994.  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 proportion of total sales shifted toward U.S. sales from
international sales compared to the sales mix in the comparative
period in the previous year because of the company's one time
retro-fitting order for a U.S. customer.  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 fiscal year.
    Gross margin decreased to 39.9% of net sales, or $5,629,355, in
the fiscal year ended September 30, 1995 from $4,424,874, or 45.7%
of net sales, in fiscal year 1994.  As described above, the near
term trend toward 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, increased product costs, increased
labor costs and costs related to additional overhead, principally in
manufacturing.
    Operating expenses increased to $3,621,777, or 25.6% of net
sales, in the fiscal year ended September 30, 1995 from $1,427,104
in fiscal year 1994 even though sales increased, due principally to
an increase in manufacturing and operating expenses as a percentage
of sales.
    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 and vending machine dispensing products.  Stackers
sold with most validators store validated paper currency, usually in
security removable cassettes.

CONTACT: Coin Bill Validator, Inc.

Henry Kayser, 516/231-1177