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DIEBOLD ANNOUNCES AGREEMENT TO PURCHASE MAJORITY INTEREST IN MEXICAN ATM DISTRIBUTOR

 CANTON, Ohio, June 3 /PRNewswire/ -- Diebold, Incorporated (NYSE: DBD) today announced that it has reached agreement in principle for the purchase of 80 percent of Hidromex, S.A. de C.V.'s automated teller machine (ATM) distribution and certain related businesses. Hidromex, which sells and services ATMs from InterBold(R), the joint venture between Diebold and International Business Machines Corporation (NYSE: IBM), has been Diebold's ATM distributor in Mexico since 1987. The related businesses being acquired also distribute physical and electronic security equipment, Compaq computers and Gilbarco gas pumps. Terms were not disclosed. Diebold said it expected Mexican government approval and the purchase to be completed later this year.
 "We see great potential in Mexico as banking privatizes and the economy in general grows, and we look forward to being a major player in this expansion through our ownership of these Hidromex businesses," said Mr. Robert W. Mahoney, Diebold chairman and chief executive officer. "We have had a close relationship with Hidromex for 15 years and respect their success in the Mexican marketplace."
 Hidromex, headquartered in Mexico City, has annual revenues from ATM sales and service of approximately $25 million (U.S.). Over the past three years, the company has sold approximately 3,200 Diebold ATMs in Mexico, capturing over 80 percent of the total self-service market in the country. The company also holds service contracts on these machines.
 "We anticipate continuing ATM growth in Mexico, which is a large market for self-service systems," said Mr. Mahoney. "This acquisition also gives us the opportunity to more aggressively market Diebold electronic security systems in Mexico as we execute our corporate strategy to grow our security business worldwide." Hidromex has about 235 people involved in its sales and service organization for banking products.
 "We welcome this investment by Diebold in the Mexican business community, and we are confident that the company will continue to provide banking customers here the quality products and services that they have come to expect from Hidromex over the years," said Mr. Fernando Mangino Urrutia, president of Hidromex. "We will continue to work with Diebold to ensure a smooth transition for all our valued customers in Mexico."
 Diebold, Incorporated, headquartered in Canton, Ohio, is a world leader in financial self-service transaction systems, security products and customer service. Founded in 1859 as a security equipment company, Diebold today develops, manufactures, sells and services InterBold ATMs, electronic and physical security systems, facility products, software and systems for global financial and commercial markets. In 1992, Diebold had revenues of $543.8 million (U.S.), an increase of 7 percent over 1991 revenues, and earnings of $41.1 million (U.S.), a 15 percent increase over the previous year.
 -0- 6/3/93
 /CONTACT: Mary Ann Jackson of Diebold, Incorporated, 216-588-3780/
 (DBD)


CO: Diebold, Incorporated ST: Ohio IN: CPR SU: TNM

DA -- CL022 -- 4114 06/03/93 16:48 EDT
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Publication:PR Newswire
Date:Jun 3, 1993
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