TransAct Technologies Incorporated Board of Directors Issues Letter to Shareholders

TransAct Technologies Incorporated Board of Directors Issues Letter to

HAMDEN, Conn., Nov. 28, 2012 (GLOBE NEWSWIRE) --

To Our Shareholders,

As you are all aware, TransAct Technologies Incorporated (Nasdaq:TACT) has
recently received communications from a shareholder voicing concerns regarding
shareholder value, the direction of TransAct, and the compensation of our
chief executive officer, Bart C. Shuldman, and has strongly urged the Board of
Directors ("Board") to hire outside advisors to explore strategic
alternatives. In this shareholder's view, a sale of the Company right now is
the only way to maximize the value of TransAct. The Board respectfully
disagrees with the positions taken by this shareholder. The Board and
management believe they have established a strong three part foundation for
growth and unanimously believe that the pipeline of new products and other
actions described below are the best path to deliver value to all of our
shareholders. Both your Board and management are focused on executing their
business plan for your benefit.

First, and most important, we would like to describe the platform for growth
that we have established.The Company has diversified from a niche impact
printer company heavily dependent on the domestic point of sale market to a
company with diversified thermal and inkjet printers, terminals and software
products designed to address existing, new and potentially large
markets.During the last two years, your management has prepared for
expansions into two new opportunities, the Food Safety and Nutritional
Labeling market and the Oil and Gas exploration market, which have the
possibility of becoming strong revenue streams including recurring consumable
sales. The acquisition of Printrex, Inc. allowed TransAct to take advantage of
synergies between the companies to expand into the Oil and Gas exploration and
medical and mobile markets. In addition, TransAct has finished the testing
phase for and has introduced to the hospitality market the Ithaca 9700, a
terminal that includes TransAct developed software that makes food spoilage
more manageable by quickly printing easy-to-read expiration and "enjoy by"
date labelsso that our food service customers know exactly what's fresh and
what's not. In addition, the Ithaca 9700 can also be used to print nutritional
and information labels for such items as 'grab-and-go' sandwiches.With our
biggest customer in the food service industry approving the new Ithaca 9700
for their franchise and company owned stores, we are already on a path to
creating a strong presence in the Food Safety and Nutritional Labeling market,
which has the potential to result in the development of a strong customer base
like the one that TransAct has built in the casino, gaming and lottery
industries. In addition, the Company continues to sell into the world-wide
casino market its Epic series of printers and EPICENTRAL Print System which
expands TransAct's printer capability with software that allows customers to
print receipts and coupons.While we acknowledge that market acceptance of
some of these products has been slower than we anticipated, we still believe
that these products have enabled us to expand our market share of the casino
printer market.

Second, our foundation for growth does not end with a discussion of our new
products.Despite tumultuous times, we have invested in innovation and
expansion into new markets, while remaining debt free with a strong balance
sheet, all while continuing to provide the high level of service and quality
products our customers have come to expect from TransAct. Our relationships
with key customers remain strong in part due to our commitment to upgrade and
tailor our products to our customers' needs. We believe that our reputation
for customer service and industry leading reliability create lasting customer
loyalty providing the basis for us to increase our share of the markets in
which we currently operate as well as in those markets we are entering.

Third, the Board and management have taken advantage of opportunities to
provide value to our shareholders through return of capital.This fall, the
Board approved commencement of a quarterly cash dividend, which along with
TransAct's stock repurchase program provides TransAct's shareholders with a
source of cash and liquidity. During 2012, the Company has repurchased over
$5.5 million of its stock at an average share price of $8.30. Since March
2011, TransAct has purchased over 10% of its common shares, returning
approximately $8.2 million back to our shareholders.To provide even more
return to our shareholders, on November 15, 2012, the Company separately
announced its adoption of a Rule 10b5-1 plan to repurchase up to an additional
$4 million of its stock through May 2013.

Your Board Believes In and Supports the Company's Strategy.However,we also
want to be clear that we are cognizant of our fiduciary duties to TransAct's
shareholders and appreciate constructive criticism that helps TransAct improve
its direction and performance.Rest assured, we take your comments
seriously.We want you to know that the Board regularly discusses the
Company's products, prospects, strategic direction and the possibility of
strategic alternatives. The Board continually reviews and assesses the success
of our new product initiatives.In addition, the Board has had numerous
discussions with shareholders about the expressions of views.Some of our
shareholders have discussed with us the performance and compensation of our
chief executive officer, Mr. Bart Shuldman. Under Mr. Shuldman's direction,
management has been able to steer TransAct into financial stability in a very
unstable global economy and is currently positioning TransAct for growth. Even
our most vocal critic of Mr. Shuldman has admitted that under Mr. Shuldman's
leadership TransAct "has innovated, diversified and won business seemingly
above its weight class." We believe that under Mr. Shuldman's direction,
TransAct will continue to do these things. As we have discussed in more detail
in our proxy statement, in determining the appropriate level of compensation
for TransAct's senior executives, including Mr. Shuldman, the independent
directors of the Board worked with a leading compensation consulting firm in
2009. The firm indicated that the compensation of all of our senior executives
is competitively comparable with that of senior executives of companies of a
similar size. In addition, your Board has also made efforts to strengthen the
alignment of the interests of Mr. Shuldman and our chief financial officer,
Steve DeMartino, with that of our shareholders, by requiring that 30% and 20%,
respectively, of their earned cash bonuses be paid in vested stock units
payable in three years from the grant date.

We currently believe that TransAct's diversified product base, investments in
innovative technology and expansion into new countries and markets have laid a
solid foundation for growth and have strong potential to increase shareholder
value. Although we believe that the potential for company growth and long-term
share value enhancement provides a better opportunity for our shareholders as
a whole than a near-term sale before we can bear the fruits of our new and
strong foundation, we want to emphasize that your Board and management remain
committed to considering alternatives that maximize shareholder value,
including entering into discussions and considering credible value enhancing
offers from third parties that properly take into account the Company's
current position and future prospects.


The Board of Directors of TransAct Technologies Incorporated

About TransAct Technologies Incorporated

TransAct Technologies Incorporated (Nasdaq:TACT) is a leader in developing and
manufacturing market-specific solutions, including printers, terminals,
software and other products for transaction-based and other industries. These
industries include casino, gaming, lottery, banking, kiosk, point-of-sale,
food safety, hospitality, oil and gas, and medical and mobile.Each
individual market has distinct, critical requirements for printing and the
transaction is not complete until the receipt and/or ticket is
produced.TransAct printers and products are designed from the ground up
based on market specific requirements and are sold under the Ithaca®, Epic,
EPICENTRAL® and Printrex® product brands.TransAct distributes its printers
through OEMs, value-added resellers, selected distributors, and direct to
end-users.TransAct has over 2.4 million printers installed around the
world.Beyond printers, TransAct is committed to providing world-class
printer service, spare parts, accessories and printing supplies required by a
growing worldwide installed base of printers.Through its TransAct Services
Group, TransAct provides a complete range of supplies and consumables items
used in the printing and scanning activities of customers in the hospitality,
banking, retail, food safety, gaming, government and oil and gas exploration
markets.Through its webstore,, and a direct
selling team, TransAct addresses the on-line demand for these
products.TransAct is headquartered in Hamden, CT.For more information,
please visit or call 203.859.6800.

The TransAct Technologies, Inc. logo is available at

Forward-Looking Statements:

Certain statements in this letter include forward-looking statements.
Forward-looking statements generally can be identified by the use of
forward-looking terminology, such as "may", "will", "expect", "intend",
"estimate", "anticipate", "believe" or "continue" or the negative thereof or
other similar words. All forward-looking statements involve risks and
uncertainties, including, but are not limited to, customer acceptance and
market share gains, both domestically and internationally, in the face of
substantial competition from competitors that have broader lines of products
and greater financial resources; introduction of new products into the
marketplace by competitors; successful product development; dependence on
significant customers; dependence on significant vendors; dependence on
contract manufacturers for the assembly of a large portion of our products in
China; the ability to protect intellectual property; the ability to recruit
and retain quality employees as the Company grows; dependence on third parties
for sales outside the United States, including Australia, New Zealand, Europe,
Latin America and Asia; economic and political conditions in the United
States, Australia, New Zealand, Europe, Latin America and Asia; marketplace
acceptance of new products; risks associated with foreign operations;
availability of third-party components at reasonable prices; price wars or
other significant pricing pressures affecting the Company's products in the
United States or abroad;risks associated with potential future acquisitions;
the outcome of the lawsuit between TransAct and Avery Dennison Corporation;
and other risk factors detailed from time to time in TransAct's reports filed
with the Securities and Exchange Commission. Actual results may differ
materially from those discussed in, or implied by, the forward-looking
statements. The forward-looking statements speak only as of the date of this
letter and the Company assumes no duty to update them to reflect new, changing
or unanticipated events or circumstances.

CONTACT: TransAct Technologies Incorporated
         Steven DeMartino, President and Chief Financial Officer
         ICR Inc.
         William Schmitt

TransAct Technologies, Inc. Logo
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