GPT Finalizes Sale of Its 50% Ownership in Hangzhou CBV Plastics Corp. Ltd.Business Editors Global Payment Technologies, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on Symbol: GPTX) ("GPT GPT glutamic-pyruvic transaminase; see alanine transaminase. GPT abbr. glutamic-pyruvic transaminase GPT glutamic-pyruvic transaminase. "), a leading manufacturer and innovator of currency acceptance systems used in the worldwide gaming, beverage, and vending industries announced today it has sold its 50% interest in CBV CBV - call-by-value China Venture Limited, which owns 100% of Hangzhou CBV Plastics Corp. Ltd. ("CBV"), and received a return of its investment and a small profit. Stephen Katz
Stephen Katz (1946 in New York City – 18 October, 2005 in Plano, Texas) was an American teacher and screenwriter. , GPT Chairman and Chief Executive Officer, commented, "Since its inception in 1997 CBV has provided us with a reliable, low-cost supply of less complex plastic components for GPT's Generation I and Generation II products, as well as the tooling used in molding plastic parts. Additionally, CBV has developed products for clients other than GPT." Mr. Katz continued, "The combination of lower priced components and reduced tooling costs, coupled with short lead times has served GPT well during the last five years and has provided us with significant savings and flexibility. However, following the advent of our new and more sophisticated Generation III Argus(TM) and Aurora world bill validators for the gaming, beverage and vending industries, GPT has moved to a level of complexity for plastic components that no longer fits the core competency A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
"Further, these changes, from "many" components to fewer, yet more complex plastic parts, coupled with our successful strategic initiatives, both within and away from the core business of currency validation, requires that our management team focus its attention on those business opportunities which provide the greatest return on investment as well as increase shareholder value. Hence, the decision to consummate this transaction." About Global Payment Technologies, Inc. Global Payment Technologies, Inc. is a United States-based designer, manufacturer, and marketer of automated currency acceptance and validation systems used to receive and authenticate (1) To verify (guarantee) the identity of a person or company. To ensure that the individual or organization is really who it says it is. See authentication and digital certificate. (2) To verify (guarantee) that data has not been altered. currencies in a variety of payment applications worldwide. GPT's proprietary and patented technologies are among the most advanced in the industry. Please visit the GPT web site for more information at http://www.gpt.com. Special Note Regarding Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : A number of statements contained in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 that involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the applicable statements. These risks and uncertainties include, but are not limited to: the risks that GPT's current and future products may contain errors or defects that would be difficult and costly to detect and correct; dependence on the paper currency validator market and its potential vulnerability to technological obsolescence ob·so·les·cent adj. 1. Being in the process of passing out of use or usefulness; becoming obsolete. 2. Biology Gradually disappearing; imperfectly or only slightly developed. ; possible risks of product inventory obsolescence; potential difficulties in manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. ; potential shortages of key parts and/or raw materials; potential difficulties in managing growth; dependence on a limited base of customers for a significant portion of sales; dependence on key personnel; the possible impact of competitive products and pricing; and other risks described in more detail in Securities and Exchange Commission filings. --30--md/ny* csm
CONTACT: Global Payment Technologies, Inc., Hauppauge
Thomas McNeill, 631/231-1177 ext. 273
or
Hayden Communications, Inc.
Matthew Hayden, 843/272-4653
KEYWORD: NEW YORK
INDUSTRY KEYWORD: BANKING FOODS/BEVERAGES GAMING MANUFACTURING
COMPUTERS/ELECTRONICS
SOURCE: Global Payment Technologies, Inc.
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