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Level2 Distribution

March 31, 2002

Dove Canyon, California, November 12th, 2001

Level2 Distribution, a division of Electronic Cash Systems, Inc., was announced today to service the automated teller machine and point of sale resellers across the United States. The company, founded by a management group with over 25 combined years in the ATM and POS markets, will focus on a full line card of products and services.

The company is characterized as an "a la carte" provider of products and services in the electronic cash transaction industry. Level2 Distribution carries and distributes a long list of leaders in the market, including Cross ATMs, Triton ATMs, Tidel ATMs and Lipman ATMs. The company also offers a unique service approach, "we allow our customers to utilize us in areas where they may lack expertise or leverage, we offer terminals, installation, processing, extended warranty, billing, and even statement preparation services" says Greg Mahoney, company President. 

In the POS market, the company offers leading edge products from Lipman, Thales, Verifone, Hypercom, and Linkpoint. In addition, the company will carry supplies, signage, and parts for the terminals they sell. Mahoney adds, "we are a true distribution model for this market, we are here to enable the reseller, not to replicate or create redundancy in an already confusing supply chain."

The target customer at Level2 Distribution is the established, proven and reputable sales professional or sales office. The other key type of customer is an established office that may be "p.o.s.-centric", Level2 Distribution provides these types of customers a turnkey, customized private label ATM program.

Level2 Distribution has relationships with product and service providers including leasing companies, processors, vault cash providers, and technical service networks. Greg Mahoney states, "It is extremely difficult for a reseller in the marketplace to arrange product procurement, installation, processing, leasing, maintenance, ach services, statement preparation, the list goes on – we fill the gap. We are not an ISO, we are a straightforward provider of services and products.  It is all about core competency, if it is not a core competency of the customer, we step in."

Level2 Distribution, based in California, will have presence and customer service options utilizing the worldwide web, direct to rep customer service and also via electronic methods such as links between customers.

The company's approach to the market is as product and service network with an emphasis on product delivery and service execution at wholesale distribution prices. Mahoney adds, "it is all about cost models, you have to have a very strict cost model in order to be effective. Distribution in any market expands the opportunity for those in it by compressing costs and getting products and services into the hands of the merchant at a reasonable price."

Level2 Distribution can be reached at 866.4LEVEL2 or at www.level2distribution.com.

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