TROY Group, Inc. Announces Sale of ACH Software Product Line

COSTA MESA, Calif., Jan. 22 /PRNewswire-FirstCall/ -- TROY Group, Inc.
(Pink Sheets: TROY) announced today the sale of its ACH Software Product Line
to a significant financial services provider. The purchase price was
$1.5 million, which includes contingent consideration of $0.4 million and the
assumption of liabilities of approximately $2.3 million. The sale will result
in a pretax gain of approximately $3.0 million assuming the contingent
consideration is collected.
The Company's ACH Software Product Line, which includes server based
software for originating and processing ACH transactions, generated $633,000
in revenue during fiscal 2006 and $276,000 in revenue for the first three
quarters of fiscal 2007. Cash after reduction for income taxes is estimated
to be approximately $0.6 million assuming contingent consideration is received
and will be used for general corporate purposes.
"We are pleased to announce the sale of our ACH Software Product Line,"
stated Patrick Dirk, CEO and Chairman of TROY Group, Inc. "We believe this
transaction will be good for the ACH Software Product line customers and
employees. The sale of the ACH Software Product Line will allow TROY to focus
on our core printing solutions business," Dirk added.
About TROY Group
TROY Group, Inc. ("TROY") is a worldwide provider of printing solutions.
Our security printing solutions include application software, high security
check printing hardware and specialized consumables for secure printing and
payment applications. We sell and service our products to major corporations,
banks, key government accounts and distributors worldwide. Visit TROY at
http://www.troygroup.com.
Forward-looking statements of TROY (statements that are not historical
fact) in this news release are made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. These forward-looking
statements may be identified by terms such as believe, expect, may, will,
could and should, and the negative of these terms or other similar
expressions. These statements are subject to risks and uncertainties that
could cause actual results to differ materially from those discussed in the
forward-looking statements. These risks and uncertainties include, but, are
not limited to, the ability to develop new products, the ability to hire and
retain qualified management, technology and other personnel, the impact of
competition from existing and new technologies and companies and the other
factors set forth in our periodic reports and other documents that we
distribute from time to time which are available in our financial statements
under certain important factors on our website TROYgroup.com or
pinksheets.com. Statements included in this news release are based upon
information known to TROY as of the date of this release, and TROY assumes no
obligation to update information contained in this news release.
TROY Group, Inc.
3535 Hyland Avenue, Suite 200
Costa Mesa, CA 92626
(714) 241-4760
(714) 241-4762 Fax
http://www.troygroup.com
Contact: Myra Erickson
Investor Relations

SOURCE TROY Group, Inc.

Myra Erickson, Investor Relations of TROY Group, Inc., +1-714-241-4760, fax,
+1-714-241-4762