Global Axcess (OTC BB: GLXS)

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There's an old investment adage that you should invest in what you buy.  Have you ever used an ATM?  Of course you have.  So have I.  ATMs (automatic teller machines) have become a regular and expected convenience marking the American landscape.  ATMs, which used to be located only near banks, are now springing up in bars and restaurants, fast-food and convenience stores, airports, hotels, office buildings and movie theaters.  And with about 380,000 ATMs in the U.S. currently, 220,000 of which are non bank-owned ATMs, the market has barely reached 50% saturation.  The number of new ATMs being added yearly is staggering.  Global Axcess is rolling up the highly fragmented non bank-owned ATM industry -- a highly profitable, recession proof business that is ripe for consolidation. Read on!
 

Global Axcess Corp. (OTCBB: GLXS)

Vital Stats  June 2001 OTC BB Symbol  GLXS Recent price 6/ 29/01 $1.10 Market Cap $12.6 million Shares Out  11.5 million Est Market Float 3.5 million Inside Ownership  70% (approx) FYE  Dec 31

Highlights: The ATM industry is recession proof. The average ATM withdrawal is $67.  If the average drops to $40, usage fees to GLXS remain the same! GLXS revenues are predictable with all of the company's ATM locations contracted for 5 to 7 years. GLXS has acquired Nationwide Money Services adding more than 1,000 ATMs to its network. Surcharge bans are now being lifted internationally for deployment of non bank-owned  of ATMs. It is estimated there will be 1 ATM per 1,000 people in the U.S. by 2002.

Corporate Profile

Global Axcess is a leader in the non bank-owned, independent Automated Teller Machine (ATM) industry. Global Axcess currently has 1,200 ATM machines in its network. Its current acquisition plans will bring the company to 4,000 ATMs by the end of 2001 and anticipates having 10,000 machines by the close of 2002.  The company has a strong management team, is well-positioned in its industry, and has a clear business model for growth.
 

ATM Industry And Market

The industry has barely reached 50% of its market potential with basic services. The largest competitor in the non-bank ATM business is eTrade with a network of 18,000 machines.  The industry is expected to grow at a compound rate of 35% by 2003. The industry is highly  fragmented, with 200+ companies in the small to mid-size range of 1,000 to 3,000 ATMs.  The average company in this industry has 200 to 1,000 machines. 

There are currently over 800,000 ATMs today worldwide and it is estimated that number will grow to 1.5 million by 2004. As of 1999, a study found, there were 149 million Americans over the age of 18 with ATM cards (71% of the U.S. population) conducting 565 million transactions each month at the nation’s primary 94,000 ATM machines, with 87% of them withdrawing cash, at an average of $67.  According to an Ernst & Young study, more ATMs have   been deployed in the last five years than in the previous 15 years. The study estimates a 15% annual ATM deployment growth through 2005. 
 
 

News Alert    News Alert    News Alert    News Alert

FOR IMMEDIATE RELEASE
Global Axcess Corp.
David Fann
Tel:  (619) 243-1163
PondelWilkinson MS&L
Corporate and Investor Relations
E. E. Wang/Roger Pondel
Tel:  (310) 207-9300
Email investor@pondel.com

Pacifica Financial Group
Omar Sanchez/Carl Marciniak 
Tel:  (949) 852-1812 

San Diego, California – June 29, 2001 – Global Axcess Corp. (OTC BB:GLXS) today announced it has completed the acquisition of  the  Nationwide Money Services subsidiary of Cardservice International, a global provider of financial transaction services.  Under terms of the transaction, Global Axcess also acquired EFT Integration (EFTI), a wholly owned subsidiary of NMS that specializes in ATM transaction processing and other services.  Terms of the stock transaction were not disclosed.

Nationwide, based in Ponte Verda Beach, Florida, had approximately $9.2 million in annual revenues in 2000.  The company is an independent provider of automatic teller machine (ATM) services in shopping centers and other locations and for small banks. It currently has more than 1,000 ATMs in operation, primarily in the Southeastern United States. 

Michael Dodak, currently president and chief executive officer of Nationwide, joins Global Axcess in the newly created position of president - ATM services.  He also becomes a member of the Global Axcess board of directors.   

“In addition to expanding Global Axcess’ nationwide ATM network, the acquisition of Nationwide and EFTI adds significant technical experience and a full range of ATM network services and software product offerings to Global Axcess.  This transaction is a critical milestone in our strategic plan to build and deliver a complete range of value-added financial services to consumers via interactive terminals,” said David Fann, chairman and chief executive officer of Global Axcess.

Nationwide is the developer and distributor of CashManager, WorkOrderManager and a suite of automated software products that enable ATM network providers to efficiently process financial transactions and maximize profitability.  The company currently operates ATM networks for 18 banks in the Southeastern United States.
EFT Integration, a wholly owned subsidiary of Nationwide, provides switching and transaction process for ATMs and interactive kiosks. The company hosts a state-of-the-art Web-based transactional site for its customers. Various products under development include on-site delivery of full motion advertising, interactive advertising, and other financial services that are designed to increase the revenue derived from each ATM. 

Dodak joined Nationwide in 1996 as controller and was promoted to chief executive officer in June 1997.  Under Dodak’s guidance, Nationwide created a suite of automated software products and services that enable ATM network operators to achieve enhanced profitability.  Prior to joining Nationwide, Dodak founded and served as chief financial officer to several companies.  Earlier, he was a senior financial analyst for Litton Industries and served as regional controller for Damon Corporation, a large provider of clinical lab services Dodak has an MBA from the University of California Los Angeles.

Global Axcess, a recently formed company, plans to expand its network of ATMs nationwide and add related consumer financial services.   

Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by the company from time to time) contains forward-looking statements, including, but not limited to plans to build a full range of financial services delivered through interactive terminals, expansion nationwide, develop new products and related items, including financing sources and the effects of regulation and competition.  Such forward looking information involves risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward looking statements made by or on behalf of the company.  These risks and uncertainties also include, but are not limited to, those relating to development and construction activities, dependence on existing management, leverage and debt service (including sensitivity to fluctuations in the interest rates), domestic or global economic conditions, activities of competitors and the presence of new or additional competition, fluctuations and changes in customer preferences and attitudes, and changes in Federal or State laws.  For more information, review the company’s filings with the Securities and Exchange Commission, along with other registration statements of the company.

GLXS Strategy

Global Axcess plans to acquire smaller ATM companies, third party processors, other kiosk-related technology and services, and check-cashing operators.  Current estimates for these initial acquisition candidates indicate approximately $30 to $50 million in current revenue that could be realized by GLXS.  The current targets combined operate more than 5,000 ATMs. 
 

Expansion of GLXS Products & Services

Within its ATM network, Global Axcess plans to create check-cashing services, advertising, phone cards, tourism kiosks that are interactive and other value-added, 24/7 services. GLXS can also add revenues through marketing its products, services, and expertise to independent banks, thrifts, credit unions, and other organizations.
 

Officers And Directors

David Fann: Chairman and CEO
Prior to joining Global Axcess, Mr. Fann was chairman and CEO of TeraGlobal Corp.

Richard Wray: President and Director
Prior to joining Global Axcess, Mr. Wray served as Director of Greenland Corp. 

David Idler: Vice President and Corporate Counsel
Prior to joining Global Axcess, Mr. Idler managed a private practice for 12 years.

Michael J Dodak
Former President and Director of NMS.

Robert Colabrese
Former President of EFTI, an NMS subsidiary.
 
 

Safe Harbor Statement:
Statements contained in this document, including those pertaining to acquisitions, earnings estimates and related commercial plans other than statements of historical fact, are forward-looking statements subject to a number of uncertainties that could cause actual results to differ materially from statements made.

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