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DIEBOLD ANNOUNCES PURCHASE OF MEXICAN ATM DISTRIBUTOR

 CANTON, Ohio, Jan. 10 /PRNewswire/ -- Diebold, Incorporated (NYSE: DBD) today announced that it has finalized the purchase of 100 percent of the automated teller machine (ATM) distribution and certain related businesses of Hidromex, S.A. de C.V. This is an increase from the 80 percent interest Diebold announced it intended to purchase in June 1993. The new Diebold subsidiary is called Diebold Mexico, S.A. de C.V. and is headquartered in Mexico City. Purchase terms were not disclosed.
 Diebold Mexico will continue to sell and service ATMs from InterBold(R), the joint venture between Diebold and International Business Machines Corporation. As part of the purchase agreement, the new Diebold subsidiary will also distribute and service physical and electronic security equipment, as well as The Gilbarco Corporation's line of gas pumps.
 "We are pleased to have the opportunity to play a key role in the expanding Mexican economy through our Diebold Mexico subsidiary," said Robert W. Mahoney, Diebold chairman, president and chief executive officer. "Banking in Mexico is privatizing and markets are beginning to open through the North American Free Trade Agreement passed in late 1993.
 "Hidromex, our ATM distributor since 1987, has been very successful in the Mexican marketplace," said Mahoney. The company has sold approximately 4,000 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.
 Mahoney said Diebold anticipates continuing ATM growth in Mexico, a large market for self-service systems. He also noted that this acquisition gives Diebold the opportunity to more aggressively market both physical and electronic security systems in Mexico. One of Diebold's key corporate strategies is to grow its security business worldwide.
 "We look forward to working with Diebold as it makes this investment to ensure a smooth transition for our valued customers here in Mexico," said Fernando Mangino Urrutia, president of Hidromex, who also becomes chairman of the board of Diebold Mexico. "Based on our close relationship with Diebold over several years, I can say with confidence that the company will continue to offer the quality products and services that banking customers in Mexico have come to expect from Hidromex."
 Diebold has appointed Frank G. D'Angelo to serve as director general (general manager and chief executive officer) of Diebold Mexico. He has assumed overall responsibilities in Mexico for the management of Diebold Mexico and retains his title of vice president of Diebold. D'Angelo joined Diebold in 1979 and most recently was vice president, customer service/systems operations and support for Diebold's U.S. operation. The Diebold Mexico organization employs approximately 180 people to sell and service banking products.
 Diebold, Incorporated (NYSE: DBD), 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- 1/10/94
 /CONTACT: Mary Ann Jackson of Diebold, Incorporated, 216-588-3780/
 (DBD)


CO: Diebold, Incorporated; Hidromex, S.A. de C.V. ST: Ohio IN: CPR SU: TNM

BM -- CL005 -- 0468 01/10/94 09:58 EST
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Publication:PR Newswire
Date:Jan 10, 1994
Words:569
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