Cash System reports results

LAS VEGAS, Nevada -- (PRESS RELEASE) -- Cash Systems, Inc. (NASDAQ: CKNN), a provider of cash access solutions for the gaming industry, today announced fourth quarter and full year 2007 financial results.

Fourth quarter 2007 and subsequent company highlights include:

* The approval of the Company's powercash operating system by the Gaming Laboratories International Inc. (GLI).

* The introduction of powercash at Fantasy Springs Resort Casino.

* The signing of a Letter of Intent to provide Cash Systems' powercash product to American Gaming Group LLC's first casino project, The Wildwood Casino. Cash Systems also announced that it had secured an agreement to provide its full line of cash access services including all-in-1atm services, casinopc for cash advance services, and ecash checking to The Wildwood Casino.

* The announcement that powercash is compatible with and will be available on the Bally Technologies, Inc.'s (NYSE: BYI) new iVIEW™ Display Manager™ (DM).

* A new multi-year contract with Gold River Casino where Cash Systems will provide its full line of cash access services including all-in-1atm services, casinopc for cash advance services, and ecash checking.

* An extension of the multi-year contract with Choctaw Nation of Oklahoma for its Choctaw Casinos and the addition of another Choctaw Casino location where Cash Systems will provide its casinopc for cash advance services, ecash checking and full service booth operation.

Fourth Quarter Financial Results

Revenue for the fourth quarter was $26.1 million, an increase of 4%, compared to $25.1 million in the fourth quarter of fiscal 2006.

The Company reported a loss from operations of ($4.3) million, which included bad debt expense of ($4.1) million related to an increase in the volume of returned checks in the check guarantee business and a ($450) thousand non-cash impairment charge related to the low probability of renewal of a contract at an IGS location, in the fourth quarter of fiscal 2007. This compares to income from operations of $1.2 million in fiscal 2006. Net loss was ($5.6) million, or ($0.31) per diluted share, compared to net loss of ($5.2) million or ($0.29) per diluted share, in the fourth quarter of 2006.

Michael Rumbolz, President and Chief Executive Officer of Cash Systems, Inc. stated, "With our current set of product innovations, we are very confident in our technology path, and we are continuing to make progress with powercash and are encouraged by customer feedback. Based on our product advancement combined with some of the limitations of our capital structure, the Board of Directors has determined to explore strategic alternatives to maximize shareholder value."

Fiscal 2007 Financial Results

Revenue for fiscal 2007 was $104.9 million, an increase of 9.6%, compared to $95.7 million in fiscal 2006. The Company reported a loss from operations of ($5.8) million, which includes ($5.4) million in bad debt expense and ($1.1) million for our check guarantee service related to an increase in returned checks, compared to a loss from operations of ($4.3) million in the prior year. Net loss was ($15.4) million, which included a ($4.3) million loss on extinguishment of debt, compared to ($10.0) million in fiscal 2006. The Company reported net loss per diluted share of ($0.84), compared to net loss of earnings per diluted share of ($0.57) in the prior year.

Amendment and Exchange of Senior Secured Notes

On March 14, 2008, the Company entered into a Second Amendment and Exchange Agreement (the "Amendment") with respect to its outstanding senior secured convertible notes (the "Notes"). The Amendment includes an increase in the aggregate principal amount of the Notes to $24.2 million from $22 million, a decrease in the conversion price to $2.51 and warrant strike price to $2.49, which may be further reduced by the note holders based on 120% of the volume weighted average trading price of the Company's stock for the next 20 trading days. The amendment also states an increase in the aggregate principal amount of the Notes that the note holders may require the Company to redeem as of October 10, 2008 to $12.1 million from $8 million.

Board Authorized Pursuit of Strategic Alternatives

The Company also announced today that its Board of Directors has decided to explore strategic alternatives to maximize shareholder value. Deutsche Bank, which the Company engaged earlier this year to assist with strategic matters, will serve as the Company's financial advisor in this process.

There can be no assurances that this process will result in any specific transaction. The Company does not intend to disclose developments regarding its exploration of strategic alternatives unless and until its Board of Directors approve a definitive transaction.