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VERIFONE INCREASES STAKE IN SYSTEM FINANCING COMPANY TO 48.9 PERCENT; WILL GENERATE RECURRING REVENUE FROM LEASING PORTFOLIO

 REDWOOD CITY, Calif., April 22 /PRNewswire/ -- VeriFone Inc. (NASDAQ: VFIC) today announced an increase from 19.9 percent to 48.9 percent in its ownership of VeriFone Finance, a privately held corporation offering flexible financing and leasing exclusively for VeriFone systems. The dollar value of the investment was not disclosed.
 Beginning in the second quarter of 1993, VeriFone will consolidate VeriFone Finance results and thereby recognize recurring revenue from long-term capital leases, short-term operating leases and monthly rentals, rather than product and service sales to VeriFone Finance. In addition, VeriFone Finance's assets of $22.4 million (as of Dec. 31, 1992) will be consolidated with VeriFone's total assets of $240.1 million (also as of Dec. 31).
 "Our increased ownership reflects the sustained strength of a mutually beneficial, five-year relationship," said Thomas Hubbs, VeriFone vice president of finance and chief financial officer. "Throughout this period, VeriFone Finance has recorded consistent profitability, growing with VeriFone and with the Transaction Automation industry. This investment reaffirms our strategic direction of enabling customers to use financing and leasing programs to stay abreast of current technology and expand their own customer base. We believe that opportunities afforded by this flexible approach will help fuel the continued growth of the U.S. retail market."
 Competitive Advantage
 According to Hubbs, the availability of attractive financing and leasing options that conserve customer capital has given VeriFone a competitive advantage, particularly in today's cost-conscious business climate. Purchasers of competitive systems generally must rely on third-party financing or leasing companies because few, if any, manufacturers aside from VeriFone have integrated financing and leasing solutions available.
 Over the last five years, sales to VeriFone Finance have contributed a steadily increasing percentage of VeriFone's net revenues. As of Dec. 31, 1992, approximately 200,000 VeriFone systems installed with some 400 active accounts were generating monthly financing or leasing income for VeriFone Finance.
 Financing Programs
 VeriFone Finance was established in 1988 to provide VeriFone's reseller and large end-user customers with a wide variety of flexible financing, leasing and rental programs exclusively for VeriFone products. These programs allow customers to deploy systems to field sites without making a capital expenditure. Of particular importance, financial institutions can cost-effectively upgrade merchants to new and more sophisticated services requiring higher system functionality. This conversion strengthens banks' near-term profitability through incremental fee income and maximizes their return on assets, a key banking industry measurement.
 VeriFone Finance programs include monthly rentals, operating leases, true leases, floor planning, municipal and federal programs, seasonal industry leases, conditional sales agreements and extended-term financing. Terms can be customized to support each customer's unique cash-flow situation, and several programs can be combined to create comprehensive financing and leasing solutions.
 In addition, the company offers two structured financing products. VeriFone OneSource combines financing options with customer support programs, such as Help Desk assistance, deployment, user training and system repair and replacement. The leases that support VeriFone's Electronic Merchant Program provide economic incentives for banks to convert merchants from using paper warning bulletins to electronic authorization, draft capture and settlement, thereby generating income from the lower interchange rates and transaction costs associated with electronic processing.
 System Tracking
 VeriFone Finance's personal-computer-based Asset Tracking System helps resellers to manage their growing base of VeriFone Transaction Automation systems. These customers can easily pinpoint their units at merchant locations and in transit, repair or inventory, thereby tightening control and improving productivity. They can also report on any category of information collected, such as merchant names and addresses, equipment status and age, standard industry classification (SIC) codes and serial numbers.
 The Company
 VeriFone Inc., based in Redwood City, is a leading global provider of Transaction Automation solutions used to deliver payment processing and other transaction services to the retail, healthcare and government markets. The company has more than 30 facilities -- including regional offices, development centers and manufacturing and distribution centers -- located throughout the United States and in or near Frankfurt; London; Madrid; Milan; Paris; Singapore; Sydney; Taipei and Kaohsiung, Taiwan, R.O.C.; and Bangalore, India. To date, VeriFone has shipped more than 2.8 million Transaction Automation systems, which have been installed in over 70 countries. The company's 1992 revenue totaled $226.1 million. VeriFone was named one of the 200 best small companies by Forbes in 1991 and 1992.
 -0- 4/22/93
 /CONTACT: Thomas W. Hubbs, 415-598-5548, or Tod Bottari, 415-598-5570, both of VeriFone/
 (VFIC)


CO: VeriFone Inc.; VeriFone Finance ST: California IN: CPR SU:

ML-GT -- SJ002 -- 9206 04/22/93 09:04 EDT
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Date:Apr 22, 1993
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