Cambria Africa Regulatory News (CMB)

7 May 2009 07:00



7 May 2009

LONZIM PLC

("LonZim" or the "Company")

LonZim signs ATM distribution agreement with Diebold and agreement with Kingdom Bank Limited

LonZim Plc ("LonZim") which has been established for the principal purpose of making investments in Zimbabwe and the Beira corridor in Mozambique, is pleased to announce that it has signed a sales, service and distribution agreement with Diebold Self Service Limited a subsidiary of Diebold Incorporated.

The agreement enables LonZim, through its subsidiary, Celsys, which is listed on the Zimbabwean Stock Exchange, to provide state of the art, secure, automated teller machines and other self service solutions in both Zimbabwe and Zambia.

Headquartered in Ohio, in the United States, Diebold is a company with more than 17,000 employees, and representation in more than 90 countries worldwide. In 2008, Diebold reported total revenue of US$3.2 billion and is publicly traded on the New York Stock Exchange under the symbol "DBD." www.diebold.com

An initial consignment of ten new ATM machines will be installed at Kingdom Bank branches within the next three months, expanding the existing Celsys ATM network. The new ATM's will be installed under a 5-year full maintenance lease agreement with Kingdom Bank, the financial arm of the Kingdom Meikles Africa Holdings Group, in which Celsys charges a fee based on the number of transactions processed.

Similar agreements are under negotiation with other financial institutions in Zimbabwe and Zambia, with a view to increasing the number of installed ATM's over the next 24 months.

David Lenigas, Executive Chairman of LonZim Plc commented:

"The regeneration of the financial services sector in Zimbabwe has begun and LonZim's portfolio of companies is ideally placed to deliver solutions to this exciting market.

"With the support of a world leader in technology such as Diebold, we will quickly be able to grow our existing ATM network and create a powerful market leading presence that will generate lucrative annuity based revenue streams for the company under these multi-year contracts with major financial institutions."

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