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November 10, 2004


north canton, ohio - Diebold, Incorporated today announced it has reached a settlement agreement with the State of California in its civil action against Diebold Election Systems, Inc., a wholly owned subsidiary. Terms of the settlement consist of a total $2.6 million payment to the state, which includes $500,000 to help form a voter education and poll worker training program in California coordinated through the University of California Institute of Governmental Studies. Additionally, Diebold has agreed to certain technology and reporting obligations that will provide election officials with a better understanding of the most effective manner of implementing its elections systems.

Costs related to this civil action, including the $2.6 million reserve for the settlement payment and costs related to product recertification, legal and other expenses, were included in the company's third quarter results. As previously disclosed, these costs had a $0.05 impact on earnings in the third quarter. Also, the company previously disclosed it anticipates an additional $0.01 per share of expense in the fourth quarter related to resolving this matter.

"We've worked closely with California officials to come to an agreement that allows us to continue to move forward in providing California and its residents with outstanding election systems," said Thomas W. Swidarski, senior vice president, strategic development and global marketing for Diebold, Incorporated, who directly oversees the Diebold Election Systems subsidiary. "While we believe Diebold has strong responses to the claims raised in the suit, we are primarily interested in building an effective and trusting relationship with California election officials so that we can work together in building election solutions that address the State's needs. Avoiding the distraction and cost of prolonged litigation will assist us in meeting those goals. The excellent performance of our solutions on Election Day is a great example of our ability to provide safe, accurate and reliable voting technology to the residents of California."

On Election Day in California, Alameda and Plumas counties used the Diebold AccuVote-TS solution to provide their electorate, totaling more than 690,000 registered voters, with a secure, accurate and accessible election system. Also, Los Angeles County, the largest county in the United States, used the AccuVote-TS system for early voting, with each voting station having the ability to present to each voter one of more than 800 ballot styles in seven different languages. Parallel monitoring conducted during the presidential election in California found the AccuVote-TS recorded votes with 100 percent accuracy, as they did during the March primary election. Also, voters in Georgia, Maryland, Kansas, Virginia and elsewhere throughout the country successfully used Diebold touch screen voting systems to accurately and securely cast their ballots on Election Day.

Diebold Election Systems, Inc. is a wholly owned operating subsidiary of Diebold, Incorporated, a global leader in providing integrated self-service delivery systems and services. Headquartered in McKinney, Texas, Diebold Election Systems provides high-quality voting technology to jurisdictions of all sizes, along with comprehensive service and support capability, and is committed to elections accuracy, security and integrity. For more information on Diebold Election Systems, visit the company's Web site at  http://www.dieboldes.com, or call 1-800-433-VOTE.

Diebold, Incorporated is a global leader in providing integrated self-service delivery systems, security and services. Diebold employs more than 13,000 associates with representation in nearly 90 countries worldwide and is headquartered in Canton, Ohio, USA. Diebold reported revenue of $2.1 billion in 2003 and is publicly traded on the New York Stock Exchange under the symbol "DBD." For more information, visit www.diebold.com.


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2008 11.Nov.2004 07:23

miss enfranchised

Oh.... Goody.... I predict California to be a red state in the 2008 elections... While I am at it, I bet Arnold will run for president.

Boycott 11.Nov.2004 11:18

Edward Craig epcraig@gmail.com

Boycott Diebold. Boycott the banks which use Diebold ATMs, move your accounts to banks which don't have DIEBOLD emblazoned on their property. Let them know you're closing your accounts because they support the suborning of elections.