De La Rue, the World Leader in Tamperproof Government Documents and Secure Cash Processing Technologies, Acquires 85% of Sequoia Voting Systems, the Leading U.S. Touch Screen Voting Firm

Business Wire, May 29, 2002

Business/Technology Editors

OAKLAND, Calif.--(BUSINESS WIRE)--May 29, 2002

The acquisition reflects De La Rue's confidence in Sequoia's

ability to provide highly secure touch screen voting systems that fulfill De La Rue's corporate values of Security, Integrity and Trust.

De La Rue, a leading worldwide developer of secure identity solutions for governments and secure cash management technologies, has acquired a controlling interest in Sequoia Voting Systems, the leading U.S. provider of touch screen voting systems.

De La Rue, based in Hampshire, England, will acquire an 85 percent interest in Sequoia Voting Systems of Oakland, Calif. from Jefferson Smurfit Group plc of Dublin, Ireland, Sequoia's parent company. Smurfit will retain a 15 percent interest in the company.

Ian Much, Chief Executive of De La Rue commented: "Voting and election management has many parallels with our traditional business of protecting financial value, personal identity and brand integrity. Sequoia's industry leading solutions and the commitment of their people to delivering quality solutions, are entirely consistent with our core values of Security, Integrity and Trust."

De La Rue is a leader in secure currency and cash management technologies, producing one in five of the world's banknotes, including a recent contract for 500m euros for the European Central Bank.

One in five of the world's ATMs have a De La Rue cash dispensing mechanism inside and more than 2,000 financial institutions in 60 countries rely on De La Rue to secure their transactions

The company is also a leading authority in the development of secure government identity solutions for national identification, driver's license and passport issuing programs.

News of the acquisition was announced during a De La Rue shareholder meeting this morning in London, roughly three weeks after Sequoia successfully concluded historic mayoral and councilor elections in the East London borough of Newham.

The electronic election, one of the largest in the history of Europe, incorporated several new and exciting technologies, including electronic poll books, to expedite voter registration, and secure provisional voting.

"We consider De La Rue's acquisition of a controlling interest in Sequoia Voting Systems to be a huge vote of confidence in the security and reliability of our touch screen voting technology," said Peter Cosgrove, who will continue to lead Sequoia as president and chief executive officer.

"De La Rue's acquisition of Sequoia is of significant relevance to the U.S. election industry," Cosgrove added, "because of De La Rue's depth of experience providing secure transactions for state and federal governments worldwide."

Sequoia's pedigree in elections and direct record voting extends back to 1895 when AVM Corp., one of the precursor companies of today's Sequoia, pioneered the development of the AVM mechanical lever voting machine. With over 200,000 lever machines in service, it was natural for Sequoia to develop electronic voting machines that matched the ease of use and accuracy of the company's lever machines.

The success of Sequoia's groundbreaking touch screen installation in Riverside County, Calif. in 2000, the first major countywide installation in U.S. history, has inspired government officials from coast to coast. Sequoia was further honored to be chosen by Palm Beach County and other top Florida jurisdictions, including Pinellas, Hillsborough and Indian River counties, to replace their punch card systems with touch screen voting systems.

Sequoia has installed more than 35,000 Direct Record Electronic (DRE) full face and touch screen voting machines in 16 states. The latest U.S. election using Sequoia's touch screen machines took place in Lucas County, Ohio, where Sequoia managed a successful special election with only three weeks of preparation time. The Ohio election, which used both lever and touch screen machines, was the fastest implementation of touch screen voting in U.S. history.

Following on two decades of success for Sequoia under Smurfit, Cosgrove said the company's future is now further enhanced through its new majority owner, De La Rue, given that company's capabilities and international reputation for securing transactions of value.

"The alliance of De La Rue and Sequoia blends the most talented and experienced company in touch screen voting with a world leader in cash and secure transactions technology and in the production of national currencies, passports and other government ID solutions, including ballots," Cosgrove said. "The synergies between De La Rue and Sequoia are extensive and there are obvious opportunities for technology sharing and mutual support."

Indeed, De La Rue, with almost 7,000 employees in 31 countries, including more than 850 employees in the United States, can provide Sequoia with immediate customer support capabilities, new technologies, and longer term international routes to market.

De La Rue will acquire 85% of Sequoia for an initial cash payment of $23 million and the potential of subsequent payments up to $12 million during the next three years, based on agreed sales growth targets. De La Rue and Sequoia invite you to visit their respective websites at www.delarue.com and www.pr.sequoiavote.com.