Diebold Sells U.S. Elections Systems Business to ES&S

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Thu Sep 3, 2009 8:30am EDT

NORTH CANTON, Ohio, Sept. 3 /PRNewswire-FirstCall/ -- Diebold, Incorporated
(NYSE: DBD) announced today that it has sold its U.S. election systems
business, primarily consisting of its Allen, Texas-based subsidiary, Premier
Election Solutions, Inc., to Election Systems & Software, Inc. (ES&S), a
leading company in the election systems industry.  The sale was consummated on
September 2.

(Logo: http://www.newscom.com/cgi-bin/prnh/20080725/DIEBOLDLOGO)

Diebold has agreed to sell its elections systems business for $5 million in
cash plus future cash payments representing 70% of any cash collected on the
outstanding U.S. election systems business accounts receivable as of August
31, 2009.  As a result of this transaction, Diebold expects to recognize a
pre-tax loss in the range of $45 million to $55 million.  The pre-tax loss
includes the assets and liabilities of the business, certain retained legal
liabilities, and other transaction costs.  This business will be reported as a
discontinued operation.  Excluding the impact of this divestiture, Diebold's
full-year earnings per share outlook for 2009 remains unchanged.    

Diebold entered the U.S. election systems business after purchasing Global
Election Systems, Inc., in January 2002.  Since early 2006, Diebold has
identified its U.S. elections systems business as non-core to its operations
and has been pursuing strategic alternatives to ownership, including
divestiture.  In August 2007, Diebold announced it had realigned its U.S.
elections systems subsidiary to operate as an independent entity and renamed
the company, Premier Election Solutions.  Since that time, Diebold has
maintained only a financial interest in Premier with no direct operational
involvement.  In 2008, Premier generated $88.2 million in revenue, or 2.8
percent of Diebold's total reported revenue for the year.

The company's Brazilian subsidiary, which manufactures voting terminals for
Brazil's national elections board, the Tribunal Superior Eleitoral (TSE), is
not affected by the sale of Premier Election Solutions.  

Diebold, Incorporated is a global leader in providing integrated self-service
delivery and security systems and services. Diebold employs more than 17,000
associates with representation in nearly 90 countries worldwide and is
headquartered in Canton, Ohio, USA. Diebold is publicly traded on the New York
Stock Exchange under the symbol 'DBD.'  For more information, visit the
company's Web site at www.diebold.com, or visit www.diebold.com/150 to learn
more about Diebold's 150-year history.


SOURCE  Diebold, Incorporated

Media: Mike Jacobsen, +1-330-490-3796, michael.jacobsen@diebold.com;
Investors: Christopher Bast, +1-330-490-6908, christopher.bast@diebold.com,
both of Diebold
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