Cash Technologies Products Provide Unique Support for New Federal Regulations

Patriot Act Rules Will Affect All Financial Institutions, Requiring New Anti-Money Laundering Procedures That can be Automated Using Cash Tech's Products. Cash Technologies, Inc. (Amex: TQ) today released information regarding its products' support for new rules issued by the U.S. Department of the Treasury requiring financial institutions to verify the identity of customers.

The new Treasury Department rules, released April 30th, are intended to facilitate the prevention, detection, and prosecution of international money laundering and the financing of terrorism as required by Section 326 of the USA Patriot Act of 2001.

The rules require financial institutions to verify the identity of a customer, maintain records of the information obtained and determine whether the person appears on any lists of known or suspected terrorists.

Cash Tech's BONUS(TM) system, MFS(TM) (Mobile Financial Services) system and other products provide secure customer enrollment, automated check-cashing, money order, wire transfer and other services. These products provide unique support for implementation of the new rules through fraud analysis and biometric techniques.

The Company is presently negotiating with a number of banks and check-cashing operations for the deployment of its systems and has just successfully completed a pilot with one of the nation's largest check-cashing companies. Institutions have until October 1, 2003 to comply with the new rules, which for many will require the implementation of awkward manual procedures that Cash Tech's products can automate and simplify.

Although the new rules do not currently require financial institutions to address check-cashing activities, Cash Tech's BONUS system permits banks to securely enroll new customers and automate high-risk transactions, such as check-cashing, which cause billions of dollars in losses every year due to fraud. In addition, the system provides access to external networks and databases, allowing institutions and government agencies to easily share information as contemplated by the new rules.

Millions of employees without bank accounts or with insufficient bank balances visit check-cashing stores or their employers' banks every payday in order to cash their paychecks. The employees are not actually customers of the bank and visit only for paycheck-cashing.

Most banks, while asking for identification, have no systems that retain the non-customer information and have no capability to determine the authenticity of the identification presented. This inhibits any effective fraud-prevention program, inviting huge losses and precluding the banks from implementing anti-money-laundering procedures in their check-cashing operations, though these transactions are, for now, excluded from the new rules.

The problem is massive as hundreds of millions of these checks are presented each year at U.S. institutions. In retail banks, a remarkable third or more of all teller transactions are for check-cashing.

BONUS requires enrollment using personal and biometric information. All transaction data, including personal identification and check details, are analyzed for fraud and retained, reducing the probability of illegal activity. If and when federal anti-money-laundering rules are expanded to include check-cashing and other services, BONUS will provide the institution with the tools needed to comply.

Bruce Korman, CEO of Cash Technologies, stated, "In the new anti-terrorism environment, fraud detection and prevention has become even more important. Cash Tech's products give financial service providers a clear advantage in minimizing losses and complying with new Patriot Act regulations."

BONUS is the only automated, biometric-based financial services product for institutions presently offered in the industry today, combining risk management, connectivity with outside systems and Cash Tech's patented data processing methods. This makes it a compelling choice for institutions as they seek to reduce fraud, improve customer service and meet the requirements of government regulations.

About Cash Technologies

Cash Technologies, Inc. develops and markets innovative data processing systems, including the BONUS(TM) and MFS(TM) financial services systems, EMMA(TM) transaction processing software and PrISM(TM) security system. Through EMMA, consumers and businesses may access a wide variety of financial services via ATMs, POS terminals and wireless devices including: check cashing, electronic bill payment, event ticketing, interactive advertising and traditional ATM cash dispensing. The Company also produces CoinBank(R) self-service electronic coin counting machines. For more information, visit www.cashtechnologies.com.

Matters discussed in this release include forward-looking statements that involve risks and uncertainties, and actual results may be materially different. Factors that could cause actual results to differ include technical barriers that prevent the implementation or success of Cash Tech's technology, anticipated legislation related to check-cashing and other financial services that fails to be enacted, activity levels in the securities markets and other risk factors disclosed in Cash Tech's reports to the Securities and Exchange Commission, including its Forms 10-QSB and Forms 10-KSB on file with the SEC. The Company cautions that there are numerous hurdles facing biometric-based systems including significant capital requirements and public and governmental acceptance.

For further information, please contact Ed King of Cash Technologies, Inc., +1-213-745-2000, ext. 114, eking@cashtech.com

SOURCE Cash Technologies, Inc.