VeriFone Reports Surging Sales and Profitability

Sustained Performance Fuels Growth into New Markets with Industry-leading Solution Portfolio


SANTA CLARA, Calif., Oct. 24, 2003 (PRIMEZONE) -- VeriFone, Inc., the world's leading provider of payment solutions, announced today that revenues and profits for the one-year period ending October 31, 2003 are expected to soundly beat previous expectations established by management and its financial sponsors.

Revenues for the quarter ending October 31, 2003 are now expected to be $90 million, a 12% increase over the same period a year ago. Revenues for the year ending October 31, 2003 are now expected to exceed $335 million, an over 8% increase over the same period last year. The company also expects that EBITDA will exceed $50 million in the year ending October 31, 2003.

Douglas Bergeron, VeriFone Chairman and CEO, stated: "We are concluding a remarkable year for VeriFone and are executing on all cylinders in all markets. These numbers prove what can happen when you blend a fantastic team of employees with a portfolio of great new products."

Bergeron continued: "Both of our competitors, Hypercom (NYSE:HYC) and Ingenico (INGC:PA), are reporting year-over-year revenue declines, asset sales, and management shakeups. Conversely, leading solutions introduced earlier this year are driving growth at VeriFone."

VeriFone's solutions are best positioned for the accelerating international marketplace where EMV and security mandates are resulting in terminal upgrades. Domestic growth is being driven by the rapid increase in debit card usage, the accelerating pace of broadband acceptance, and the proven value proposition of combining payment with value-added applications including gift cards, prepaid telco cards and electronic check conversion.

"VeriFone has proven itself as a thought leader in the payments industry by producing relevant, reliable payment systems and solutions," said Kevin Bradford, executive vice president, Client Relations, Sales and Business Development for Vital Processing Services(r) (Vital(r)) (NYSE:TSS). "It only makes sense that the success of VeriFone's people, products and processes are reflected in its quarterly earnings."

"In the 27 months since our divestiture from Hewlett-Packard, we have returned VeriFone to its historic position as the trusted leader and most significant driver of change for the payment industry," said Mr. Bergeron. "Our incredible brand equity and reputation for quality, coupled with our new winning solutions, speak volumes about the great year ahead."

About VeriFone, Inc.

VeriFone, Inc., (http://www.verifone.com) recognized worldwide as the trusted leader in secure electronic payment technologies, provides expertise, solutions and services for today with a smart migration strategy for tomorrow. VeriFone is leading the industry in the delivery of solutions that add value to the point of sale, resulting in improved merchant retention and the generation of new sources of revenue for its partners and customers. VeriFone solutions are specifically designed to meet the needs of vertical markets including financial, retail, petroleum, government and healthcare. VeriFone has shipped over eleven million electronic-payment systems.


            

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