Cardtronics Acquires i-design

Thu Mar 7, 2013 7:30am EST

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http://pdf.reuters.com/htmlnews/8knews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20130307:nGNXUXHWNa

* i-design transforms ATM screens into delivery devices for targeted marketing & 3rd party ads
* Enhances ability to influence consumer behavior before, during & after the ATM transaction

HOUSTON, March 7, 2013 (GLOBE NEWSWIRE) -- Cardtronics
http://www.globenewswire.com/newsroom/ctr?d=10024340&l=1&a=Cardtronics&u=http%3A%2F%2Fwww.cardtronics.com%2Fdefault.asp
, Inc. (Nasdaq:CATM) today announced that its indirectly wholly-owned subsidiary, Cardtronics
Creative UK Ltd., has acquired i-design group plc
http://www.globenewswire.com/newsroom/ctr?d=10024340&l=1&a=i-design%20group%20plc&u=http%3A%2F%2Fwww.i-designplc.com%2Finvestor-relations%2Foverview.html
. Based in Scotland, i-design
http://www.globenewswire.com/newsroom/ctr?d=10024340&l=1&a=i-design&u=http%3A%2F%2Fwww.i-designplc.com%2Fhome.html
 provides the technology and services that transform ATM screens (and receipts) into delivery
devices for interactive customer communications by financial institutions, as well as advertising
space for retailers, third-party advertisers and independent ATM owners.

Built on the premise of helping financial services providers, retailers and third-party
advertisers make the most of existing customer communications, marketing and ad campaigns, the
i-design solution repurposes the "waiting time" in a standard ATM transaction. On an i-design
enhanced ATM, screen-saver loops and screens that formerly read "processing" or "please wait" (for
example) can deliver targeted marketing/advertising messages, interactive on-screen customer
surveys, plus a call-to-action message on the receipt after the transaction.

"In a world where consumer attention seems forever fixed on a screen-smartphones, TVs, tablets,
laptops, etc.-it's important to remember the attention-getting quality of a screen known to all
demographics, the ATM screen," said Steve Rathgaber, chief executive officer, Cardtronics.
"Because an ATM transaction is all about that person's money, they're going to pay extra close
attention to that screen. And with tens of thousands of ATMs under Cardtronics' direct control,
plus our existing relationships with 1,200 financial institutions and name-brand retailers on two
continents, i-design finds its ideal home at Cardtronics."

See it work - i-design on YouTube

* Mobile phone ad -- http://bit.ly/Samsung_atmAd
http://www.globenewswire.com/newsroom/ctr?d=10024340&l=4&u=http%3A%2F%2Fbit.ly%2FSamsung_atmAd 
* Fast-food ad -- http://bit.ly/McDonalds_atmAd
http://www.globenewswire.com/newsroom/ctr?d=10024340&l=4&u=http%3A%2F%2Fbit.ly%2FMcDonalds_atmAd 
* Soda ad -- http://bit.ly/CocaColaMealDeal_atmAd
http://www.globenewswire.com/newsroom/ctr?d=10024340&l=4&u=http%3A%2F%2Fbit.ly%2FCocaColaMealDeal_atmAd

* Chewing gum ad -- http://bit.ly/Wrigleys_atmAd
http://www.globenewswire.com/newsroom/ctr?d=10024340&l=4&u=http%3A%2F%2Fbit.ly%2FWrigleys_atmAd 
* Fast-food ad 2 -- http://bit.ly/BurgerKing_atmAd
http://www.globenewswire.com/newsroom/ctr?d=10024340&l=4&u=http%3A%2F%2Fbit.ly%2FBurgerKing_atmAd

How i-design does it all: creates, sells and designs the space

* Software
http://www.globenewswire.com/newsroom/ctr?d=10024340&l=5&a=Software&u=http%3A%2F%2Fwww.i-designplc.com%2Fproducts%2Fjoono-software.html
: ATM owner/operator licenses i-design's proprietary, platform independent software to enable
in-house targeted marketing and advertising on ATM screens and receipts.
* Media Sales & Operations
http://www.globenewswire.com/newsroom/ctr?d=10024340&l=5&a=Media%20Sales%20%26%20Operations&u=http%3A%2F%2Fwww.atm-ad.com%2F%3Futm_source%3Di-designweb%26utm_medium%3Dnews%26utm_content%3Ddesc%26utm_campaign%3DASDAarticle
: For ATM owners/operators that choose to run third-party ads on their network, in addition to
targeted customer communications, i-design manages and sells the newly created advertising space
on behalf of the ATM owner/operator, which approves all content.
* Creative Agency
http://www.globenewswire.com/newsroom/ctr?d=10024340&l=5&a=Creative%20Agency&u=http%3A%2F%2Fwww.i-designplc.com%2Fservices%2Flimejelly.html
: Always a collaborative affair, i-design's in-house design firm creates the customer
communications, targeted marketing and third-party ad campaign media-specifically formatted for
the ATM screen and receipt.

"Every transaction can be unique and thus more valuable from the consumer perspective-that's what
having i-design solutions in-house means to Cardtronics," continued Rathgaber. "With i-design,
Cardtronics gains new software to help financial institutions talk to and be heard by their
customers. With i-design and its existing network of 62,800 ATMs, Cardtronics potentially creates
a highly effective and international advertising platform for retailers and advertisers. With
i-design, Cardtronics can help financial service providers deliver personalized messages to
individual cardholders, all while enhancing the value of an ATM transaction with a relevant offer
or reward ready for immediate redemption."

"Merging with Cardtronics empowers i-design to invest in its marketing software and related
services in a way not available to the company in its stand-alone form, which is outstanding news
for our existing customers," said Ana Stewart, founder of i-design. "Going forward, whether it's
leveraging Cardtronics' top-tier financial institution relationships to promote our interactive
targeted marketing software or using Cardtronics' ATM fleet as a catalyst to expand our
third-party advertising capabilities at key retailers-as a part of Cardtronics i-design has an
opportunity to accelerate its growth, achieve greater scale and expand its leadership on a global
basis."

Scope of i-design

In addition to having its origins, base of operations and largest concentration of clients in the
United Kingdom, i-design has clients in continental Europe, the United States, Canada and South
America. Having built a client base featuring 10 major ATM network owners, as well as many of the
U.K.'s best known banks and supermarkets, i-design has licensed its software across an aggregate
fleet of 30,000 ATMs, and of that number 8,500 ATMs are currently available for third-party
advertising. For both the total licensed ATM estate and available-for-advertising counts, the
majority are located in the U.K.

Plans for i-design

The acquisition of i-design brings in-house a marketing/advertising solution deployed by
Cardtronics in limited fashion since 2010, primarily through its Bank Machine operations in the
United Kingdom, and also at select Cardtronics ATM placements in the United States and Canada. Now
a part of Cardtronics' suite of ATM services, i-design software will be installed at additional
domestic and international company-owned ATMs, as well as create opportunity for additional
international expansion without significant capital investment.

As an additional measure to significantly increase the total number of ATM screens and receipts
available to third-party advertisers, and to aid financial institutions' efforts to generate
non-fee revenue from the ATM channel, Cardtronics will also offer the i-design suite of solutions
to the financial services marketplace as a standalone service. From an i-design product roadmap
perspective, Cardtronics plans to advance work already begun by the acquired company to extend the
full-service i-design marketing/advertising solution to other "screens" including mobile phones,
digital signage, self-service kiosks and more.

Integration of i-design & Management

The i-design management team will continue in their current roles, including i-design founder and
chief executive officer Ana Stewart, who devised the strategy for delivering ATM marketing
solutions and brings 20-plus years of ATM industry expertise to Cardtronics' leadership team.
Additionally, Cardtronics values the skills, knowledge and expertise of i-design's existing
employees and expects them to play an important role in the further development and continuing
growth of i-design's business. The i-design offices in Dundee, Scotland and London will be
retained, which together with the existing Bank Machine offices give Cardtronics an expanded
presence and higher profile in the United Kingdom.

Transaction Details

As of today, March 7, Cardtronics has acquired a sufficient number of shares of i-design for a
cash payment of 60 pence per i-design share to allow it to commence the process to compulsorily
acquire the remaining i-design shares on the same terms. Total cash consideration will be
approximately £8.5 million and i-design comes to Cardtronics with a debt-free balance sheet.

2013 Guidance

Cardtronics expects that the transaction will be neutral to adjusted net income per share and not
have a significant impact on consolidated revenues in 2013.

About i-design group plc

i-design is the world-leading provider and developer of marketing and advertising software and
services for ATM owners. Its newly launched next generation software, joono
http://www.globenewswire.com/newsroom/ctr?d=10024340&l=20&a=joono&u=http%3A%2F%2Fwww.i-designplc.com%2Fproducts%2Fjoono-software.html
, enables banks and ATM owners to communicate targeted marketing messages to customers through
multiple digital channels, including ATMs, self-service machines, mobile phones and plasma
screens. As part of its offering, i-design has a media sales capability, atmAd
http://www.globenewswire.com/newsroom/ctr?d=10024340&l=20&a=atmAd&u=http%3A%2F%2Fwww.atm-ad.com%2F%3Futm_source%3Di-designweb%26utm_medium%3Dnews%26utm_content%3Ddesc%26utm_campaign%3DASDAarticle
, which manages third party advertising campaigns. In this way, the company offers financial
institutions the ability to generate new revenue streams from their ATM/self-service estates.

Based in Scotland, i-design was established in 1991 and launched its marketing solution to
financial institutions in 2004.

About Cardtronics

(Nasdaq:CATM)

Making ATM cash access convenient where people shop, work and live their lives, Cardtronics is at
the convergence of retailers, financial institutions, prepaid card programs and the customers they
share. Cardtronics owns/operates more than 62,800 retail ATMs in U.S. and international
http://www.globenewswire.com/newsroom/ctr?d=10024340&l=23&a=international&u=http%3A%2F%2Fwww.cardtronics.com%2Fabout%2Finternational.asp
 locales. Whether Cardtronics is driving foot traffic for America's most relevant retailers
http://www.globenewswire.com/newsroom/ctr?d=10024340&l=23&a=relevant%20retailers&u=http%3A%2F%2Fwww.cardtronics.com%2Fsmall_merchants%2Fsmall-merchants-top-customers.asp
, enhancing ATM brand
http://www.globenewswire.com/newsroom/ctr?d=10024340&l=23&a=ATM%20brand&u=http%3A%2F%2Fwww.cardtronics.com%2Ffinancial%2Ffinancial-atm-branding-program.asp
 presence for card issuers
http://www.globenewswire.com/newsroom/ctr?d=10024340&l=23&a=card%20issuers&u=http%3A%2F%2Fwww.cardtronics.com%2Fabout%2Ftop-customers.asp
 or expanding card holders' surcharge-free
http://www.globenewswire.com/newsroom/ctr?d=10024340&l=23&a=surcharge-free&u=http%3A%2F%2Fwww.allpointnetwork.com%2Fdefault.aspx
 cash access on the local, national or global scene, Cardtronics is convenient access to cash,
when and where consumers need it. Cardtronics is where cash meets commerce.

The Cardtronics logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=991
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Contact Information:

 Cardtronics - Media                                                                                                                                                         Cardtronics - Investors                                                                                                                                   
 Nick Pappathopoulos                                                                                                                                                         Chris Brewster                                                                                                                                            
 Director - Public Relations                                                                                                                                                 Chief Financial Officer                                                                                                                                   
 832-308-4396                                                                                                                                                                832-308-4128                                                                                                                                              
 npappathopoulos@cardtronics.com http://www.globenewswire.com/newsroom/ctr?d=10024340&l=25&a=npappathopoulos%40cardtronics.com&u=mailto%3Anpappathopoulos%40cardtronics.com  cbrewster@cardtronics.com http://www.globenewswire.com/newsroom/ctr?d=10024340&l=25&a=cbrewster%40cardtronics.com&u=mailto%3Acbrewster%40cardtronics.com  


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