News & Events : EXS Awards Lipman Contract For 20,000 Point-Of-Sale Terminals

EXS AWARDS LIPMAN CONTRACT FOR 20,000 POINT-OF-SALE TERMINALS

Chooses NURIT^Ò as its preferred line of POS solutions

SYOSSET, NY – June 12, 2002 – Electronic Exchange Systems (EXS), a chief supplier of merchant and high tech transaction processing solutions, announced today that it has signed an agreement with Lipman for the purchase of 20,000 POS terminals. The contract enables EXS to provide its customers with NURIT^Ò wired and wireless point-of-sale solutions.

This agreement reflects EXS’ decision to primarily sell NURIT solutions, and in particular the NURIT 3020 and NURIT CAPTURE signature capture solution. “Lipman’s dedication to developing visionary products and back-end solutions, in conjunction with their focus on providing superior customer service makes them EXS’ company of choice for all of our POS solutions,” stated Garry O’Neil, executive vice president, of EXS.

Michael Grossman, Lipman’s senior vice president of ISO sales said, “EXS and Lipman have enjoyed a long and mutually beneficial relationship over the years. In recognition of our successes, EXS has chosen NURIT as its POS brand of choice, and we are excited to have them on board.”

Powered by NURIT APPS^ÔValue Added Applications, Lipman features both landline and wireless POS solutions under the NURIT brand. This complete product line includes traditional POS terminals, ECR, ATM, Scrip and Kiosk solutions for the retail, restaurant, mobile commerce, direct marketing, and fleet markets.

ABOUT THE COMPANIES:

Electronic Exchange Systems (EXS) (www.exsprocessing.com) EXS is an Independent Sales Organization with a merchant base of over 10,000 accounts and an industry leader in providing customized solutions for small to medium merchants and larger national accounts in the retail, restaurant, sports, lodging and emerging market sectors. EXS specializes in niche market, value-added services including smart card applications, gift and loyalty programs, ACH funds transfer and unique wireless solutions.

Lipman USA, Inc. (www.misteriodeobanos.org) is a wholly owned subsidiary of Lipman Electronic Engineering, Ltd. Operating worldwide, Lipman ranks among todays premiere providers of robust, flexible and highly customizable electronic payment solutions. The leading supplier of wireless point-of-sale terminals in the United States, Lipman manufactures fixed and handheld transaction solutions that seamlessly integrate hardware, application and back-office software to help processors, providers and the merchants they serve do business better. Lipman Electronic Engineering, Ltd. is listed on the Tel Aviv Stock Exchange under the symbol LPMA.TA

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From time to time the Company may issue forward-looking statements that involve a number of risks and uncertainties. The following are among the factors that could cause actual results to differ materially from the forward-looking statements: business conditions and growth in the electronics industry and general economies, both domestic and international; lower than expected customer orders; delays in receipt of orders or cancellation of orders; competitive factors, including increased competition, new product offerings by competitors and price pressures; the availability of third party parts and supplies at reasonable prices; changes in product mix; significant quarterly performance fluctuations due to the receipt of a significant portion of customer orders and product shipments in the last month of each quarter; and product shipment interruptions due to manufacturing problems. The forward-looking statements contained in this document regarding industry and revenue trends, new markets, new product introductions, technology adoption, and future business activities should be considered in light of these factors.