Elixir Group Delivers Agreement for 240 Electronic Gaming Machines

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August 29th, 2007 Leave a comment Visited 30 times, 1 so far today

Elixir Group Delivers Agreement for 240 Electronic Gaming Machines at the Almond Slot Club Located in Heart of Manila’s Chinatown District

- Agreements Now Total 1,064 Units, Including 614 Units for the Philippines Market, Pursuant to Stock Purchase and Product Participation Agreement Between Elixir Group and VendingData –

LAS VEGAS & HONG KONG–(BUSINESS WIRE)–VendingData Corporation (AMEX:VNX) announced today that Elixir Group Limited (“Elixir”) has delivered an agreement for 240 electronic gaming machines on a recurring revenue model at the Almond slot club in Manila, Philippines. There are now agreements for a total of 1,064 electronic gaming machines to be placed on a participation basis at six venues in two markets, including 614 units at 3 venues in the Philippines and 450 units at 3 venues in Cambodia, pursuant to the Stock Purchase and Product Participation Agreement between Elixir and VendingData entered into in June.

Similar to the Premier VIP slot club, at which Elixir has already placed 200 slot machines, the Almond slot club is located in the high pedestrian traffic area of Manila’s Chinatown district. The Almond site is a former theatre which the Elixir casino infrastructure team is at advanced stage of converting into a new gaming venue. The 240 gaming machines, which will represent 100% of the slot floor at the time of the venue’s opening, are expected to be installed in the next couple of weeks. The venue conversion is being undertaken only on the ground floor of the site at this time, with the potential for expansion of gaming options on an upper floor of the current facility in the future. As previously announced, 374 electronic gaming units have been installed in the Philippines market and 450 electronic gaming units are scheduled to be placed at 3 venues in Cambodia in the next couple of weeks.

Gordon Yuen, CEO of Elixir, commented, “Gaming markets across Asia are opening and/or expanding in areas beyond Macau and Elixir has proven to be a leader in these emerging markets. The agreements we have secured to date in the Philippines and in Cambodia are for venues that we believe will be the most lucrative in their respective markets which when combined with our ability to offer the best performing machines provides a significant benefit as we are placing games on a participation model. In addition, it is noteworthy that for the first six venues for which Elixir has agreements, we have achieved 100% market share of the respective slot floors. This high level of early success provides us with a lot of confidence in our ability to capitalize on the anticipated growth in gaming in the Philippines and Cambodia as well as other Asian-Pacific markets.”

Mark Newburg, President & CEO of VendingData Corporation, added, “The agreement for gaming machines at the Almond slot club is a further demonstration of Elixir’s ability to place units in what are expected to be high-earning venues across multiple markets in Asia. Since entering into the transformational agreement for our business model a little more than two months ago we have announced agreements to place over 1,000 gaming machines. Our agreement with Elixir to place high-margin recurring revenue units throughout Asia is expected to provide significant long-term benefits to shareholder value.”

Additional Information on Elixir Group Limited and Vending Data Corporation Stock Purchase and Product Participation Agreement:

In June, Elixir Group Limited and VendingData Corporation entered into a Stock Purchase and Product Participation Agreement (“Participation Agreement”) pursuant to which VendingData will issue its common shares and warrants to Elixir, subject to certain closing conditions including the approval of VendingData common stock shareholders. VendingData is also in the process of entering into a license agreement to change its name to Elixir Gaming Technologies Inc that will become effective on closing of the transaction.

According to the terms of the Participation Agreement, Elixir will “earn-in” an equity interest in VendingData based on the achievement of various performance milestones in terms of (a) the cumulative number of the electronic gaming machines that are contracted to be placed and leased pursuant to lease agreements entered into between VendingData and the gaming operators sourced and identified by Elixir (the “gaming machines under contract”) and (b) the cumulative number of electronic gaming machines physically placed by VendingData and in operation in the gaming premises of gaming operators pursuant to the lease agreements (the “gaming machines in operation”). Pursuant to the Participation Agreement, VendingData will purchase the electronic gaming machines from Elixir on an exclusive basis. An electronic gaming machine will be deemed to have been placed upon VendingData’s execution of a written lease agreement with a licensed gaming operator in the Asia market, pursuant to which VendingData leases the machine to the operator, for a minimum period of three years, and the operator agrees to pay to VendingData at least 20% of the net win from the operation of the machine. Net win is defined as all amounts played in or wagered on the electronic gaming machine during the relevant period minus the amount of money paid out of the machine to players, after deduction of applicable gaining taxes.

VendingData Corporation has filed with the Securities and Exchange Commission a definitive proxy statement and other relevant documents in connection with its solicitation of shareholder approval of the proposed transaction. Investors and security holders are advised to read the definitive proxy statement regarding the proposed transaction because it contains important information. Investors and security holders may obtain a free copy of the definitive proxy statement and other documents filed by VendingData at the Securities and Exchange Commission’s web site at http://www.sec.gov. The definitive proxy statement and such other documents may also be obtained from VendingData Corporation by directing such request to VendingData Corporation, 1120 Town Center Drive, Suite 260, Las Vegas, Nevada 89144, Attention: Investor Relations. VendingData and its executive officers and directors may be deemed to be participants in the solicitation of proxies from stockholders of VendingData with respect to the transactions contemplated by the Securities Purchase and Product Participation Agreement. A description of any interests that VendingData’s directors and executive officers have in the proposed transaction is available in the definitive proxy statement. Information regarding VendingData’s officers and directors is included in VendingData’s Form 10-KSB filed with the Securities and Exchange Commission on April 13, 2007. These materials are available free of charge at the Securities and Exchange Commission’s web site at http://www.sec.gov and from VendingData Corporation.

About Elixir Group Limited

Elixir is a major gaming technology solutions provider in Asia. Elixir has formed alliances with leading gaming and technology companies to develop world-class gaming products for the Asia market. Based in Macau, Elixir is a wholly owned subsidiary of Melco International Development Limited, a dynamic conglomerate with a major business focus in Leisure, Gaming & Entertainment. Elixir has offices throughout Asia including Macau, Philippines, Thailand and Vietnam.

About VendingData Corporation®

VendingData Corporation is a Las Vegas-based developer, manufacturer and distributor of innovative products for the gaming industry. The company’s products include the Deck Checker, RandomPlus and PokerOne™ shuffler lines, and the Dolphin casino chip product line, which include traditional and high- frequency (13.56 MHz) RFID gaming chips. VendingData’s newest innovative products include ShufflePro, the ChipWasher and high-value gaming plaques. In June, 2007 VendingData and Melco International Development Limited (“Melco”) subsidiary Elixir Group Limited (“Elixir”) announced a further expansion of their strategic alliance pursuant to a Stock Purchase and Product Participation Agreement recently entered into by the parties. The agreement provides that Elixir will have the right to “earn-in” an equity interest in VendingData based on the number of slot machines that are contracted to be placed on participation between VendingData and the gaming operators sourced and identified by Elixir. For more information visit the VendingData Web site at http://www.vendingdata.com.

This press release report contains forward-looking statements concerning VendingData and Elixir within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those forward-looking statements include statements regarding expectations for the transaction between VendingData and Elixir, including the expected closing of the transaction and the recurring revenue that may develop from the relationship with Elixir, and the Company’s expectations for future product revenue. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, the risk that Elixir transaction may not be completed in the third quarter of 2007 or at all; risks related to Elixir’s inability to place gaming machines at significant levels or at all; and risks relating to Elixir’s ability to place games that generate the expected amount of net-win. VendingData cautions readers not to place undue reliance on any forward-looking statements. VendingData does not undertake, and specifically disclaims any obligation, to update or revise such statements to reflect new circumstances or unanticipated events as they occur.

Contacts

For VendingData Corporation
Jaffoni & Collins Incorporated
Richard Land, Dave Jacoby
212-835-8500
vnx@jcir.com





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