Diebold, Incorporated announced today that it has sold its U.S. election systems 
business, primarily consisting of its Allen, Texas-based subsidiary, Premier 
Election Solutions, Inc., to Election Systems & Software, Inc. (ES&S), a 
leading company in the election systems industry.  The sale was consummated on 
September 2.

Diebold has agreed to sell its elections systems business for $5 million incash plus future cash payments representing 70% of any cash collected on theoutstanding U.S. election systems business accounts receivable as of August31, 2009. As a result of this transaction, Diebold expects to recognize apre-tax loss in the range of $45 million to $55 million. The pre-tax lossincludes the assets and liabilities of the business, certain retained legalliabilities, and other transaction costs. This business will be reported as adiscontinued operation. Excluding the impact of this divestiture, Diebold'sfull-year earnings per share outlook for 2009 remains unchanged.
 
Diebold entered the U.S. election systems business after purchasing GlobalElection Systems, Inc., in January 2002. Since early 2006, Diebold hasidentified its U.S. elections systems business as non-core to its operationsand has been pursuing strategic alternatives to ownership, includingdivestiture. In August 2007, Diebold announced it had realigned its U.S.elections systems subsidiary to operate as an independent entity and renamedthe company, Premier Election Solutions. Since that time, Diebold hasmaintained only a financial interest in Premier with no direct operationalinvolvement. In 2008, Premier generated $88.2 million in revenue, or 2.8 percent of Diebold's total reported revenue for the year.