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Ezeatm's Growth Driven By Strong First Half Sales

Ezeatm (ASX: EZA) has reported EBITDA of around A$2.3 million and net profit after tax of $744,085 for the first half of 2012, largely driven by significant sales during the period.

The financial performance was in line with the company's expectations.

From 1 January to 30 June, 156 new sites were signed and 54 existing sites were re-signed to longer terms.

Ezeatm has witnessed further sales growth with an additional 89 new sites signed and 20 existing sites re-signed to longer terms in the three months since the end of the half year.

A large number of these sites have been installed, with around 43 pending installations.

Ezeatm initially had 86 sites upon listing on the ASX a year ago, and as of the 30 June has 1,862 sites - a growth of 2,165%.

Major contracts

The company recently clinched a five year services agreement with First Data for the provision of ATM related services - which are expected to deliver cost savings.

During the first half of 2012, Ezeatm also signed an amendment to its exclusive 5 Year Distribution Agreement for ATMs and ATM-related products, parts and software manufactured by NeoICP Korea, Inc. to include the countries of Indonesia and Nepal.

Ezeatm had been working very closely with NeoICP since the signing of the original agreement on further customisation of the company's technology to suit both the Australian and international markets.

In addition, the company signed an exclusive 4 Year Agreement to supply ATMs and ATM-related products, parts and software to ASEAN ATMs, an Indonesian company based in Jakarta.

Ezeatm will supply a minimum of 16,000 ATMs over the term of the agreement with gross revenue expected to be greater than $85 million.

The Indonesian market is experiencing high growth in the number and the usage of ATMs as the industry implements improved technologies as part of the EMV migration mandate set by the Bank of Indonesia.

EMV is the global standard used by card providers for integrated circuit (IC) debit and credit cards used in point of sale terminals and ATMS.

There are over 250 million people in Indonesia and the number of ATMs is predicted to significantly increase from the 60,000 ATMs that currently exist.

A number of the existing ATMs will also need to be upgraded to meet the EMV Standards and recently released NSICCS2 Standards in Indonesia.

The cashPod, an ATM exclusively distributed by Ezeatm, is an EMV compliant device and the company is working with authorities to expedite the certification.

Ezeatm expects that the certification of the cashPod will be finalised in October and the first "live" transaction and orders will be received in the same month.

"Business of the Year"

Ezeatm was recently awarded the Local Chambers of Commerce "Business of the Year" award at the gala awards ceremony in Caversham, Western Australia.

Todd Zani, chief executive officer of Ezeatm, commented: "It has been a very successful first 12 months as a public company.

"We have expanded from being principally a Western Australian-based ATM company to now being the largest ASX listed ATM deployer.

"When you couple that with our ATM processing for other third party deployers, and the fact that we are also a distributor of world leading technologies in Australia and now internationally, it has been quite remarkable.

"I am extremely proud of the efforts of our staff and this is an amazing reward for all the hard work put in by our team."

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