Tuesday September 14, 8:10 am Eastern Time
Company Press Release
On-Point Technology Systems, Inc. Announces Exclusive Five
Year Agreement to Provide Customized Vending Equipment
to a Telecommunications Company
Minimum Purchases Required Under The Agreement Are Approximately $4 Million in Year One
SAN MARCOS, Calif.--(BUSINESS WIRE)--Sept. 14, 1999-- ON-POINT TECHNOLOGY SYSTEMS, INC. (''On-Point'')
(Nasdaq/NMS:ONPT - news) today announced the execution of an Agreement to provide, on an exclusive basis over the next
five years, customized vending equipment to a telecommunications company.
Under the terms of the Agreement, certain minimum purchases are required in order to maintain exclusivity, special pricing
and other consideration. Should the customer fulfill those minimum levels of purchases, the total value of purchases under the
Agreement will approximate $18.5 million over five years. In addition, the Agreement represents a firm commitment for
purchases of approximately $4 million in year one.
The customer has placed an initial purchase order pursuant to the Agreement for approximately $1.5 million. On-Point
anticipates delivery of the initial order within the next 60 days.
''This Agreement marks the first major order for our new On-Point Vending Technologies division,'' stated Frederick
Sandvick. ''Under our strategic corporate realignment announced earlier this month, we formed this operating division with
the clear objective of targeting broader market opportunities for high-security vending products. We are pleased with our
current success in this arena, and look forward to aggressively pursuing additional opportunities leveraging our core
competency in the design and manufacture of high-security vending products.''
About On-Point Technologies
On-Point provides effective technologies for transaction automation. Three operating divisions, On-Point Lottery
Technologies, On-Point Vending Technologies and e-Point Technologies, form the core of the company's market-driven
strategy.
On-Point pioneered the development of the instant ticket vending machine for lotteries worldwide and is one of the world's
largest providers of these and other high-security vending products. On-Point designs, sells, leases and services high-security
vending machines both domestically and internationally and has begun to market the delivery of automated electronic
solutions for high-volume, cash-oriented transactions.
Any forward-looking statements in this release are made pursuant to the ''safe harbor'' provisions of the Private Securities
Litigation Act of 1995. Investors are cautioned that actual results may differ substantially from such forward-looking
statements. Forward-looking statements involve risks and uncertainties including, but not limited to, continued acceptance of
the company's products and services in the marketplace, competitive factors, new products and technological changes, the
company's successful entry into new markets, the company's successful transition to its next generation product line,
dependence upon third-party vendors, a limited number of customers, political and other uncertainties related to customer
purchases, and other risks detailed in the company's periodic filings with the Securities and Exchange Commission. |
