Tidel Amends Senior Revolving Credit Line With JP Morgan Chase

Business Wire, Dec 21, 2001

Business Editors & High Tech Writers

HOUSTON--(BUSINESS WIRE)--Dec. 21, 2001

Tidel Technologies, Inc. (Nasdaq:ATMS) today announced that it has amended its Senior Revolving Credit Facility with JP Morgan Chase. The amendment restores Tidel's compliance with the provisions of the agreement and revises the terms to better address the present needs of the company. The amended facility, among other things:

-- Allows for borrowings up to $7,000,000 at the prime rate, currently 4.75%;

-- Adjusts the borrowing base to permit greater concentrations of eligible
accounts receivable from certain customers;

-- Increases the maximum amount of eligible inventory includable in the
borrowing base from $2,500,000 to $3,500,000; and

-- Modifies certain financial covenants with respect to tangible net worth
requirements and interest coverage ratios to better relate to the current
financial position of the company.

James T. Rash, Chairman and CEO, stated, "Prior to the amendment, Tidel was not in compliance with certain covenants under the facility primarily due to the establishment of reserves for losses related to Credit Card Center during the quarter ended June 30, 2001. The amendment restores this working capital facility to good standing and provides availability for future borrowings. Presently there is approximately $4,700,000 outstanding under the facility, compared to $5,200,000 at June 30, 2001."

He added, "We continue to work closely with the holders of our 6% Subordinated Convertible Debentures to resolve outstanding issues and restructure the obligations."

Tidel Technologies, Inc. is a manufacturer of automated teller machines and cash security equipment designed for specialty retail marketers. To date, Tidel has sold more than 30,000 retail ATMs and 115,000 retail cash controllers in the U.S. and 36 other countries. More information about the company and its products may be found on the Internet at www.tidel.com.

"Safe Harbor" disclaimer under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements, including statements as to anticipated or expected results, beliefs, opinions, and future financial performance. The forward-looking statements are based on current expectations and assumptions and involve risks and uncertainties that may cause the company's actual experience to differ materially from that anticipated. Estimates are based on reliable information and past experience. However, operating results are affected by a wide variety of factors, many of which are beyond the control of the company. Factors include, but are not limited to, the levels of orders which are received and can be shipped in a quarter; customer order patterns and seasonality; costs of labor, raw materials, supplies and equipment; technological changes; competition and competitive pressures on pricing; and economic conditions in the United States and worldwide. Additionally, factors and risks affecting operating results include those described in the company's registration statements and periodic reports filed with the U.S. Securities and Exchange Commission.