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Barroway Topaz Kessler Meltzer & Check, LLP; Harwood Feffer LLP; Izard Nobel LLP; and Stull, Stull & Brody Announce Settlement of Class Action Lawsuit Against Diebold, Incorporated.

CLEVELAND -- Barroway Topaz Kessler Meltzer & Check, LLP; Harwood Feffer LLP; Stull, Stull & Brody; and Izard Nobel LLP:

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF OHIO EASTERN DIVISION

In re Diebold ERISA Litigation No. 5:06 CV 0170 Judge John R. Adams

SUMMARY NOTICE OF CLASS ACTION SETTLEMENT

TO ALL PERSONS (EXCLUDING DEFENDANTS) WHO WERE PARTICIPANTS IN OR BENEFICIARIES OF THE DIEBOLD, INC. 401(K) SAVINGS PLAN (THE "PLAN") AT ANY TIME BETWEEN OCTOBER 22, 2003 AND MAY 7, 2009 (THE "SETTLEMENT CLASS PERIOD") AND WHOSE ACCOUNTS INCLUDED INVESTMENTS IN DIEBOLD STOCK.

PLEASE READ THIS NOTICE CAREFULLY. A FEDERAL COURT AUTHORIZED THIS NOTICE. THIS IS NOT A SOLICITATION. YOU ARE NOT BEING SUED.

A Settlement has been preliminarily approved by a federal court in a consolidated class action lawsuit against Diebold, Incorporated ("Diebold" or the "Company"), and certain of its former officers and directors, alleging breaches of fiduciary duties under the Employee Retirement Income Security Act of 1974 ("ERISA"). This Settlement will provide for a payment of $4.5 million to the Plan (minus Court-approved fees and expenses), which will then be allocated to the accounts of participants of the Plan who had portions of their Plan accounts invested in Diebold common stock or fund units in the Company Stock Fund during the Settlement Class Period. All capitalized terms not otherwise defined in this Summary Notice of Class Action Settlement have the meaning provided in the Stipulation of Settlement (the "Stipulation") available on the Settlement website described in this notice. If you qualify, you will receive an allocation. You do not need to send in a claim or take any other action to participate in the Settlement. The United States District Court for the Northern District of Ohio (Eastern Division) authorized this Notice.

WHO IS INCLUDED IN THE SETTLEMENT?

If you were a participant in the Plan at any time during the period between October 22, 2003, through and including May 7, 2009, or you were a beneficiary of any such participant and your account included investments in Diebold common stock or common stock fund units created to invest in Diebold stock, then you are a member of the Settlement Class ("Settlement Class Member"). Defendants are excluded from the Settlement Class.

WHAT IS THIS CASE ABOUT?

The Named Plaintiffs claimed that the Defendants breached their fiduciary duties under ERISA by continuing to allow the investment of the Plan's assets in Diebold common stock or Company Stock Fund units during a time when they knew or should have known that such investment was imprudent and by other related acts during the Settlement Class Period. All Defendants deny any wrongdoing. Both sides agreed to the Settlement to avoid the cost and risk of further litigation and/or to provide a recovery to Settlement Class Members.

WHAT DOES THE SETTLEMENT PROVIDE?

Defendants have agreed to create a Settlement Fund of $4.5 million to be divided among eligible Settlement Class Members after payment of attorneys' fees to Class Counsel and Case Contribution Awards to the Named Plaintiffs and payment of other costs and expenses of the Settlement, including notice and claims administration, as the Court may allow. The Stipulation, available along with other related documentation and a list of Frequently Asked Questions at the website identified below, describes the details of the proposed Settlement. Your share (if any) of the Settlement Fund will depend upon the decline in value of shares of Diebold common stock held in your Plan account(s) during the Plan of Allocation Calculation Period. This Settlement releases certain claims against Defendants relating to the investment of the Plan's assets in Diebold common stock or common stock fund units during the Settlement Class Period.

HOW DO I RECEIVE A PAYMENT?

If you are a Settlement Class Member and are entitled to a share of the Settlement Fund according to the Stipulation, you are not required to do anything to receive a payment. The payment will be made directly to your Plan account(s). If you no longer are a participant in the Plan, a Plan account will be established for you and you will be notified of this account along with further instructions. If your address has changed since you closed your Plan account(s), please contact class counsel toll-free at 866-905-8103 to advise of the change of address.

CAN I OBJECT TO OR OPT OUT OF THE SETTLEMENT?

You do not have the right to exclude yourself from the Settlement in this case, but you do have the right to object by writing to the Court. You will be bound by any judgments or orders that are entered in this Action, and if the Settlement is approved, you will be deemed to have released all of the Defendants from all claims that were or could have been asserted in this case, other than your right to obtain the relief provided to you, if any, by the Settlement.

The Court will hold a hearing in this case at 10:00 a.m. on Tuesday, February 1, 2011, in the Courtroom of Judge John R. Adams, United States District Court for the United States District Court for the Northern District of Ohio (Eastern Division), 125 Market Street, Youngstown, Ohio 44503 to consider whether to approve the Settlement and a request by the lawyers representing all Settlement Class Members, Class Counsel, for attorneys' fees, for Case Contribution Awards to the Named Plaintiffs, and for other case-related expenses. If approved, these amounts will be paid from the Settlement Fund. You may ask to speak at the hearing by filing a Notice of Intention to Appear, but you are not required to do so. Although you cannot opt out of the Settlement, you may object to all or any part of the Settlement in accordance with the Notice.

HOW DO I GET MORE INFORMATION?

If you are a Settlement Class Member and would like to receive additional information or to receive a copy of the long-form Notice of Class Action Settlement, call toll-free 866-905-8103 or visit www.DieboldERISAsettlement.com.
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Publication:Business Wire
Geographic Code:1U3OH
Date:Nov 11, 2010
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