SAN MARCOS, Calif., Dec. 12, 2000 (PRIMEZONE) -- On-Point Technology Systems, Inc. (On-Point) (Nasdaq:ONPT) today reported on matters discussed at its Annual Meeting of Shareholders on December 8, 2000. On-Point reported that all of the matters to be acted upon at the meeting described in detail in the Notice of Annual Meeting and Proxy Statement were approved and ratified by the shareholders. The Board of Directors for On-Point now includes Frederick Sandvick, the Chairman and Chief Executive Officer; John Olbrich; Keith Cannon; Gordan Graves; and Michael Carlton.
Mr. Carlton was added to the Board as a result of On-Point's new strategic international relationship with Victor Chandler International Limited (VCI), one of the world's largest independent full service gaming companies. The arrangements with VCI provide among other things that VCI and On-Point will jointly promote each other's expertise while pursuing potential international projects. Mr. Carlton has been responsible for the worldwide expansion of VCI's business in Europe, Asia and other territories and brings substantial international expertise to On-Point.
In addition to the election of the Board of Directors, the shareholders also ratified and approved an increase in the number of authorized shares of On-Point's common stock and in the number of authorized shares under On-Point's employee stock option plan.
At the meeting, Mr. Sandvick commented, "Over the last 90 days, since the termination of our discussions to be acquired by GTECH Corp., the Company has been aggressively re-positioning itself to better leverage its management expertise, its technological property, its financial resources, and its international relationships in order to enable On-Point to maximize shareholder value. Last year we had intended on maximizing shareholder value through the sale of the Company to GTECH Corp. However, in July of this year those plans were terminated and, as a result, we have refocused our attention on re-positioning the Company to take advantage of the current and new market opportunities that we believe are available and which we believe are now the best means to maximize shareholder value. We have made this decision because we believe On-Point has tremendous value not currently reflected in its current per share market price.
"We make that assessment for two primary reasons. First, On-Point's next generation lottery products have now been fully tested and launched. We have expended approximately $5 million over the past four years to develop, test, and launch these new products. We believe these products to be superior and, once accepted by the market, will provide On-Point greater returns in the lottery industry. However, it is not just these products that we believe are of great value, the Company also holds a patented design to create the world's first on-line activated instant scratch ticket for lotteries. Our next generation technology is capable of including this patented feature, which we believe can revolutionize the method in which instant tickets are activated and processed. Our new strategic international relationship with Victor Chandler International will assist On-Point in leveraging the full potential of On-Point's next generation lottery products and on-line instant ticket concept.
"Second, On-Point has other patented applications and proprietary intellectual property that, when combined with our significant international relationships, can be used to leverage other new market opportunities. These market opportunities include our strategic plans to broaden our lottery presence around the world and to develop electronic solutions to high-volume, cash-oriented transactions, such as prepaid telephony, bill payments, and similar processes. On-Point already holds a patented process for bill scanning and already produces certain equipment for prepaid telephony products.
"In line with our objectives to re-position the Company, over the past 90 days On-Point has restructured its debt, obtained additional equity capital, entered into a strategic international alliance, entered into an exclusive contract to supply instant ticket vending machines to the Argentina National Lottery, entered into definitive discussions to develop an on-line and Internet lottery in South America and enhanced its Board of Directors with the addition of two new directors, both of whom are executive officers in their respective companies that are complimentary to On-Point's current core business. We believe the future has never looked better for On-Point. Over the next 90 days we will be continuing to re-position the Company and to realign its operations to strategically transition On-Point for the launch of its next generation lottery products and the development, marketing and operation of new market opportunities.
"We continue to face many challenges as we reposition the Company for what we believe to be an exciting growth plan. We remain fully confident of our new strategies and look forward to reporting to you our progress."
About On-Point
On-Point provides effective technologies for transaction automation. On-Point pioneered the development of the instant ticket vending machine for lotteries worldwide and is one of the world's largest providers of these and other high-security vending products. On-Point designs, sells, leases and services high-security vending machines both domestically and internationally and has begun to explore the development of automated electronic solutions for high-volume, cash-oriented transactions.
Any forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Act of 1995. Investors are cautioned that actual results may differ substantially from such forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, the successful completion of proposed equity raises, continued acceptance of the company's products and services in the marketplace, competitive factors, new products and technological changes, the company's successful entry into new markets, the company's successful transition to its next generation product line, dependence upon third-party vendors, a limited number of customers, political and other uncertainties related to customer purchases, the ability to generate cash flow sufficient to sustain operating activities, and other risks detailed in the company's periodic filings with the Securities and Exchange Commission.