Girovend Cashless - Stmt re Future Strategy

RNS Number:7341C
Girovend Cashless Systems PLC
17 December 1999


                          GIROVEND CASHLESS SYSTEMS PLC

                 GIROVEND TO TARGET THE B2B INTERNET OPPORTUNITY

In the Group's interim statement to shareholders we reported that, following the
creation of a new management team GiroVend is now firmly back on track and we
committed to widening our markets, both in terms of products and solutions
offered. We have noted the subsequent significant advances in share price and
following the restructuring of our northern Germany operations, announced
yesterday, feel it appropriate to make a further statement at this time about
future strategy.

The core skills of GiroVend are in the application of technology to provide
transactional solutions for corporate customers. The new management team has a
strong marketing background and a demonstrable track record in driving business
growth. We intend to build upon those skills and management strengths to become
a more broadly transaction technology company, focussing upon the emerging
B2B transaction opportunity created by the Internet. Our blue chip customer
base provides a substantial marketing platform and our existing smart card
technology provides a technical basis for validating virtual transactions.

The transaction marketplace sits at the heart of the structural change which
e-commerce is thrusting on the global economy. Our vision is to become a leading
European B2B Internet Company, drawing revenues from the provision of
transactional services to a comprehensive range of vertical markets. And to
achieve this we are planning a rapid and substantial investment in vertical
domain understanding and virtual action technology.

GiroVend's existing business has now returned to profit and positive cash flows.
However we do not wish to jeopardise its long-term recovery by diverting working
capital to these developments. Therefore 649,700 new ordinary shares of 2.5
pence each in GiroVend are to be placed by Collins Stewart at 64 pence per
share, under existing shareholder authorities, to raise immediately #0.4m of new
money to fund detailed strategic development and identify potential targets. It
is envisaged that a further fundraising will follow in the new year to support
an aggressive expansion programme including acquisitions where appropriate. It
is also intended to further strengthen the group's management team as the new
strategy develops.

It is expected that admission will become effective and dealings in the new
ordinary shares will commence on 23 December. The new ordinary shares will, when
issued, rank parri passu in all respect with existing GiroVend ordinary shares.

The Board wishes to stress that at this early stage there are no acquisitions
imminent.

The Board also intends shortly to call an EGM of the company to seek shareholder
consent for changing the Group's name to reflect the business's new direction to
Transacsys plc.


Enquiries:             Paul McGrane           Tel:    01628 539000
                       Robin Fieth            Fax:    01628 539001

About GiroVend:

GiroVend Cashless Systems is Europe's leading provider of money substitute
solutions for in-house catering, vending and other related payment services.
The Group's systems are designed to eliminate the problems and costs     
associated with traditional cash handling by replacing coins and notes with
electronic purses in the form of magnetic stripe and smart cards or tags.
GiroVend's systems are also designed to work with a wide range of other
applications to deliver efficient control solutions for managed environments
based on multi-function staff and user cards or tags.

Mondex UK Limited holds a 6.28% stake in GiroVend and is represented on the
GiroVend Board by its Chief Executive, Ron Clark.


END
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