Diebold Announces Realignment Charges Associated with Globalization Strategy

Company is divesting MedSelect business; reaffirms first-quarter earnings

guidance



Apr 23, 2001, 01:00 ET from Diebold, Incorporated

    NORTH CANTON, Ohio, April 23 /PRNewswire Interactive News Release/ --
 Diebold, Incorporated (NYSE:   DBD) today announced corporate-wide realignment
 charges as a result of its globalization strategy to gain worldwide market
 share and become the clear leader in the financial self-service industry.  In
 addition, the company announced it is divesting its MedSelect business.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20000608/DIEBLOGO )
     Diebold expects to incur realignment charges of $27 million, or $0.26 per
 share, against first quarter earnings.  The company also expects to incur
 additional charges in the range of $30 million to $40 million through the
 balance of 2001. Components of the realignment charge that affect the first
 quarter include severance and benefits associated with the elimination of
 approximately 600 positions, the previously announced closing of the Staunton,
 Va., facility, the divestiture of the MedSelect business and the write-down of
 certain assets.  As a result of these actions, the company expects to save
 approximately $25 million annually.
     "We are excited about our future.  As a result of our globalization
 strategy, the company is in an excellent position to compete and succeed long
 term.  We are further encouraged by our first quarter results, which will fall
 in the middle of the guidance previously provided by the company," said
 Walden W. O'Dell, chairman, president and CEO.  In its press release issued
 January 23, 2001, Diebold estimated first quarter earnings per share to be in
 the range of $0.38 to $0.43, excluding realignment charges and approximately
 $0.04 dilution due to the European acquisitions.  "The effects of the
 realignment coupled with the solid first quarter position Diebold well for the
 year, and we expect year over year earnings per share improvement, excluding
 realignment charges," added O'Dell.
     As part of the realignment charges, Diebold will incur costs associated
 with global product integration, and regional balancing of its manufacturing
 capacity to better serve its diversified markets globally.
     The company continues to streamline its North American operations with
 early retirement programs for eligible employees, the consolidation of
 facilities and additional job eliminations associated with manufacturing
 capacity adjustments and attrition.
     The company will achieve several objectives as a result of this
 realignment.  First, it will create global synergies by assimilating the
 acquisitions it has made during the past two years, which will result in lower
 costs, improved productivity and shorter product lead times.  Second,
 the improved organizational structure will enable Diebold to increase customer
 focus and more quickly and efficiently anticipate and respond to changing
 customer needs.
     "The actions we are taking, including the integration of our strategic
 acquisitions, allow us to streamline our organizational structure and better
 position Diebold for accelerated global growth." said O'Dell.  "When fully
 implemented, we will be able to provide a more integrated product offering
 worldwide and focus more resources on the areas of business that provide the
 highest growth potential."
     Diebold is scheduled to announce first quarter earnings on April 24, 2001,
 before the open of trading at the New York Stock Exchange.  Walden W. O'Dell,
 chairman, president and chief executive officer and Gregory T. Geswein, senior
 vice president and chief financial officer will discuss the results during a
 conference call scheduled to begin at 10:00 a.m. (EDT) that day.  Access is
 also available live from Diebold's Web site at www.diebold.com .  During the
 conference call, the company will provide guidance on second quarter.
 
     Forward-Looking Statement
     In the Company's written or oral statements, the use of the words
 "believes," "anticipates," "expects" and similar expressions is intended to
 identify forward-looking statements that have been made and may in the future
 be made by or on behalf of the company, including statements concerning future
 operating performance, the company's share of new and existing markets, and
 the Company's short- and long-term revenue and earnings growth rates.
 Although the Company believes that is outlook is based upon reasonable
 assumptions regarding the economy, its knowledge of its business, and on key
 performance indicators which impact the Company, there can be no assurance
 that the Company's goals will be realized.  The Company is not obligated to
 report changes to its outlook.  Readers are cautioned not to place undue
 reliance on these forward-looking statements, which speak only as of the date
 hereof.  The Company's uncertainties could cause actual results to differ
 materially from those anticipated in forward-looking statements.  These
 include, but are not limited to:  competitiveness pressures, including pricing
 pressures and technological developments; changes in the Company's
 relationships with customers, suppliers, distributors and/or partners in its
 business ventures; changes in political, economic or other factors such as
 currency exchange rates, inflation rates, recessionary or expansive trends,
 taxes and regulations and laws affecting the worldwide business in each of the
 company's  operations, including Brazil, where a significant portion of the
 Company's revenue is derived; acceptance of the company's product and
 technology introductions in the marketplace; unanticipated litigation, claims
 or assessments; ability to reduce costs and expenses and improve internal
 operating efficiencies; and variation in consumer demand for biometrics and
 self-service technologies, products and services.
 
     Diebold, Incorporated is a global leader in providing integrated self-
 service delivery systems and services.  Founded in 1859, Diebold employs more
 than 11,000 associates with representation in more than 80 countries worldwide
 and headquarters in Canton, Ohio, USA.  Diebold reported revenue of
 $1.7 billion in 2000 and is publicly traded on the New York Stock Exchange
 under the symbol 'DBD.'  For more information, visit the company's Web site at
 www.diebold.com .
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X48853061
 
 

SOURCE Diebold, Incorporated
    NORTH CANTON, Ohio, April 23 /PRNewswire Interactive News Release/ --
 Diebold, Incorporated (NYSE:   DBD) today announced corporate-wide realignment
 charges as a result of its globalization strategy to gain worldwide market
 share and become the clear leader in the financial self-service industry.  In
 addition, the company announced it is divesting its MedSelect business.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20000608/DIEBLOGO )
     Diebold expects to incur realignment charges of $27 million, or $0.26 per
 share, against first quarter earnings.  The company also expects to incur
 additional charges in the range of $30 million to $40 million through the
 balance of 2001. Components of the realignment charge that affect the first
 quarter include severance and benefits associated with the elimination of
 approximately 600 positions, the previously announced closing of the Staunton,
 Va., facility, the divestiture of the MedSelect business and the write-down of
 certain assets.  As a result of these actions, the company expects to save
 approximately $25 million annually.
     "We are excited about our future.  As a result of our globalization
 strategy, the company is in an excellent position to compete and succeed long
 term.  We are further encouraged by our first quarter results, which will fall
 in the middle of the guidance previously provided by the company," said
 Walden W. O'Dell, chairman, president and CEO.  In its press release issued
 January 23, 2001, Diebold estimated first quarter earnings per share to be in
 the range of $0.38 to $0.43, excluding realignment charges and approximately
 $0.04 dilution due to the European acquisitions.  "The effects of the
 realignment coupled with the solid first quarter position Diebold well for the
 year, and we expect year over year earnings per share improvement, excluding
 realignment charges," added O'Dell.
     As part of the realignment charges, Diebold will incur costs associated
 with global product integration, and regional balancing of its manufacturing
 capacity to better serve its diversified markets globally.
     The company continues to streamline its North American operations with
 early retirement programs for eligible employees, the consolidation of
 facilities and additional job eliminations associated with manufacturing
 capacity adjustments and attrition.
     The company will achieve several objectives as a result of this
 realignment.  First, it will create global synergies by assimilating the
 acquisitions it has made during the past two years, which will result in lower
 costs, improved productivity and shorter product lead times.  Second,
 the improved organizational structure will enable Diebold to increase customer
 focus and more quickly and efficiently anticipate and respond to changing
 customer needs.
     "The actions we are taking, including the integration of our strategic
 acquisitions, allow us to streamline our organizational structure and better
 position Diebold for accelerated global growth." said O'Dell.  "When fully
 implemented, we will be able to provide a more integrated product offering
 worldwide and focus more resources on the areas of business that provide the
 highest growth potential."
     Diebold is scheduled to announce first quarter earnings on April 24, 2001,
 before the open of trading at the New York Stock Exchange.  Walden W. O'Dell,
 chairman, president and chief executive officer and Gregory T. Geswein, senior
 vice president and chief financial officer will discuss the results during a
 conference call scheduled to begin at 10:00 a.m. (EDT) that day.  Access is
 also available live from Diebold's Web site at www.diebold.com .  During the
 conference call, the company will provide guidance on second quarter.
 
     Forward-Looking Statement
     In the Company's written or oral statements, the use of the words
 "believes," "anticipates," "expects" and similar expressions is intended to
 identify forward-looking statements that have been made and may in the future
 be made by or on behalf of the company, including statements concerning future
 operating performance, the company's share of new and existing markets, and
 the Company's short- and long-term revenue and earnings growth rates.
 Although the Company believes that is outlook is based upon reasonable
 assumptions regarding the economy, its knowledge of its business, and on key
 performance indicators which impact the Company, there can be no assurance
 that the Company's goals will be realized.  The Company is not obligated to
 report changes to its outlook.  Readers are cautioned not to place undue
 reliance on these forward-looking statements, which speak only as of the date
 hereof.  The Company's uncertainties could cause actual results to differ
 materially from those anticipated in forward-looking statements.  These
 include, but are not limited to:  competitiveness pressures, including pricing
 pressures and technological developments; changes in the Company's
 relationships with customers, suppliers, distributors and/or partners in its
 business ventures; changes in political, economic or other factors such as
 currency exchange rates, inflation rates, recessionary or expansive trends,
 taxes and regulations and laws affecting the worldwide business in each of the
 company's  operations, including Brazil, where a significant portion of the
 Company's revenue is derived; acceptance of the company's product and
 technology introductions in the marketplace; unanticipated litigation, claims
 or assessments; ability to reduce costs and expenses and improve internal
 operating efficiencies; and variation in consumer demand for biometrics and
 self-service technologies, products and services.
 
     Diebold, Incorporated is a global leader in providing integrated self-
 service delivery systems and services.  Founded in 1859, Diebold employs more
 than 11,000 associates with representation in more than 80 countries worldwide
 and headquarters in Canton, Ohio, USA.  Diebold reported revenue of
 $1.7 billion in 2000 and is publicly traded on the New York Stock Exchange
 under the symbol 'DBD.'  For more information, visit the company's Web site at
 www.diebold.com .
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X48853061
 
 SOURCE  Diebold, Incorporated