Cardtronics Acquires i-design

Cardtronics Acquires i-design

  *i-design transforms ATM screens into delivery devices for targeted
    marketing & 3^rd party ads
  *Enhances ability to influence consumer behavior before, during & after the
    ATM transaction

HOUSTON, March 7, 2013 (GLOBE NEWSWIRE) -- Cardtronics, Inc. (Nasdaq:CATM)
today announced that its indirectly wholly-owned subsidiary, Cardtronics
Creative UK Ltd., has acquired i-design group plc. Based in Scotland, i-design
provides the technology and services that transform ATM screens (and receipts)
into delivery devices for interactive customer communications by financial
institutions, as well as advertising space for retailers, third-party
advertisers and independent ATM owners.

Built on the premise of helping financial services providers, retailers and
third-party advertisers make the most of existing customer communications,
marketing and ad campaigns, the i-design solution repurposes the "waiting
time" in a standard ATM transaction. On an i-design enhanced ATM, screen-saver
loops and screens that formerly read "processing" or "please wait" (for
example) can deliver targeted marketing/advertising messages, interactive
on-screen customer surveys, plus a call-to-action message on the receipt after
the transaction.

"In a world where consumer attention seems forever fixed on a
screen—smartphones, TVs, tablets, laptops, etc.—it's important to remember the
attention-getting quality of a screen known to all demographics, the ATM
screen," said Steve Rathgaber, chief executive officer, Cardtronics. "Because
an ATM transaction is all about that person's money, they're going to pay
extra close attention to that screen. And with tens of thousands of ATMs under
Cardtronics' direct control, plus our existing relationships with 1,200
financial institutions and name-brand retailers on two continents, i-design
finds its ideal home at Cardtronics."

See it work — i-design on YouTube

  oMobile phone ad --
  oFast-food ad --
  oSoda ad --
  oChewing gum ad --
  oFast-food ad 2 --

How i-design does it all: creates, sells and designs the space

  *Software: ATM owner/operator licenses i-design's proprietary, platform
    independent software to enable in-house targeted marketing and advertising
    on ATM screens and receipts.
  *Media Sales & Operations: For ATM owners/operators that choose to run
    third-party ads on their network, in addition to targeted customer
    communications, i-design manages and sells the newly created advertising
    space on behalf of the ATM owner/operator, which approves all content.
  *Creative Agency: Always a collaborative affair, i-design's in-house design
    firm creates the customer communications, targeted marketing and
    third-party ad campaign media—specifically formatted for the ATM screen
    and receipt.

"Every transaction can be unique and thus more valuable from the consumer
perspective—that's what having i-design solutions in-house means to
Cardtronics," continued Rathgaber. "With i-design, Cardtronics gains new
software to help financial institutions talk to and be heard by their
customers. With i-design and its existing network of 62,800 ATMs, Cardtronics
potentially creates a highly effective and international advertising platform
for retailers and advertisers. With i-design, Cardtronics can help financial
service providers deliver personalized messages to individual cardholders, all
while enhancing the value of an ATM transaction with a relevant offer or
reward ready for immediate redemption."

"Merging with Cardtronics empowers i-design to invest in its marketing
software and related services in a way not available to the company in its
stand-alone form, which is outstanding news for our existing customers," said
Ana Stewart, founder of i-design. "Going forward, whether it's leveraging
Cardtronics' top-tier financial institution relationships to promote our
interactive targeted marketing software or using Cardtronics' ATM fleet as a
catalyst to expand our third-party advertising capabilities at key
retailers—as a part of Cardtronics i-design has an opportunity to accelerate
its growth, achieve greater scale and expand its leadership on a global

Scope of i-design

In addition to having its origins, base of operations and largest
concentration of clients in the United Kingdom, i-design has clients in
continental Europe, the United States, Canada and South America. Having built
a client base featuring 10 major ATM network owners, as well as many of the
U.K.'s best known banks and supermarkets, i-design has licensed its software
across an aggregate fleet of 30,000 ATMs, and of that number 8,500 ATMs are
currently available for third-party advertising. For both the total licensed
ATM estate and available-for-advertising counts, the majority are located in
the U.K.

Plans for i-design

The acquisition of i-design brings in-house a marketing/advertising solution
deployed by Cardtronics in limited fashion since 2010, primarily through its
Bank Machine operations in the United Kingdom, and also at select Cardtronics
ATM placements in the United States and Canada. Now a part of Cardtronics'
suite of ATM services, i-design software will be installed at additional
domestic and international company-owned ATMs, as well as create opportunity
for additional international expansion without significant capital investment.

As an additional measure to significantly increase the total number of ATM
screens and receipts available to third-party advertisers, and to aid
financial institutions' efforts to generate non-fee revenue from the ATM
channel, Cardtronics will also offer the i-design suite of solutions to the
financial services marketplace as a standalone service. From an i-design
product roadmap perspective, Cardtronics plans to advance work already begun
by the acquired company to extend the full-service i-design
marketing/advertising solution to other "screens" including mobile phones,
digital signage, self-service kiosks and more.

Integration of i-design & Management

The i-design management team will continue in their current roles, including
i-design founder and chief executive officer Ana Stewart, who devised the
strategy for delivering ATM marketing solutions and brings 20-plus years of
ATM industry expertise to Cardtronics' leadership team. Additionally,
Cardtronics values the skills, knowledge and expertise of i-design's existing
employees and expects them to play an important role in the further
development and continuing growth of i-design's business. The i-design offices
in Dundee, Scotland and London will be retained, which together with the
existing Bank Machine offices give Cardtronics an expanded presence and higher
profile in the United Kingdom.

Transaction Details

As of today, March 7, Cardtronics has acquired a sufficient number of shares
of i-design for a cash payment of 60 pence per i-design share to allow it to
commence the process to compulsorily acquire the remaining i-design shares on
the same terms. Total cash consideration will be approximately £8.5 million
and i-design comes to Cardtronics with a debt-free balance sheet.

2013 Guidance

Cardtronics expects that the transaction will be neutral to adjusted net
income per share and not have a significant impact on consolidated revenues in

About i-design group plc

i-design is the world-leading provider and developer of marketing and
advertising software and services for ATM owners. Its newly launched next
generation software, joono, enables banks and ATM owners to communicate
targeted marketing messages to customers through multiple digital channels,
including ATMs, self-service machines, mobile phones and plasma screens. As
part of its offering, i-design has a media sales capability, atmAd, which
manages third party advertising campaigns. In this way, the company offers
financial institutions the ability to generate new revenue streams from their
ATM/self-service estates.

Based in Scotland, i-design was established in 1991 and launched its marketing
solution to financial institutions in 2004.

About Cardtronics (Nasdaq:CATM)

Making ATM cash access convenient where people shop, work and live their
lives, Cardtronics is at the convergence of retailers, financial institutions,
prepaid card programs and the customers they share. Cardtronics owns/operates
more than 62,800 retail ATMs in U.S. and international locales. Whether
Cardtronics is driving foot traffic for America's most relevant retailers,
enhancing ATM brand presence for card issuers or expanding card holders'
surcharge-free cash access on the local, national or global scene, Cardtronics
is convenient access to cash, when and where consumers need it. Cardtronics is
where cash meets commerce.

The Cardtronics logo is available at

Contact Information:

Cardtronics — Media             Cardtronics — Investors
Nick Pappathopoulos             Chris Brewster
Director — Public Relations     Chief Financial Officer
832-308-4396                    832-308-4128

   Cardtronics and Allpoint are registered trademarks of Cardtronics, Inc.

      All other trademarks are the property of their respective owners.

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