HOUSTON, Feb. 22, 2006 (PRIMEZONE) -- Cardtronics, Inc. ("Cardtronics" or the "Company"), the world's largest independent owner/operator of ATMs, today announced its financial results for the quarter and year ended December 31, 2005.

FOURTH QUARTER RESULTS

Financial information:

For the fourth quarter of 2005, revenues totaled $69.8 million, representing a 12.6% increase over the $62.0 million in revenues recorded during the fourth quarter of 2004. The Company incurred a net loss for the fourth quarter of 2005 of approximately $0.9 million, compared to net income of approximately $1.5 million for the same period in 2004. The year-over-year increase in revenues was primarily due to a number of acquisitions consummated during 2005, including the BAS Communications, Inc. ATM portfolio in March 2005, the Neo Concepts, Inc. ATM portfolio in April 2005, and Bank Machine Limited in the United Kingdom in May 2005. The decrease in net income was primarily due to the additional interest, depreciation and amortization expense amounts associated with the aforementioned acquisitions, higher selling, general and administrative costs resulting from the Company's growth, higher vault cash rental costs due to rising interest rates, and the impact of replacing lower-cost bank debt with higher-cost senior subordinated notes as we put a more permanent capital structure in place. The accelerated roll out of ATMs in Walgreens and CVS locations throughout the United States during 2005 also continued to negatively impact the Company's current period results, as such machines are still in the process of ramping to profitable transaction levels.

Earnings before interest, taxes, depreciation and amortization ("EBITDA") totaled $11.4 million for the fourth quarter of 2005, representing a 37.3% increase over the $8.3 million in EBITDA recorded during the fourth quarter of 2004. Adjusted EBITDA, which represents EBITDA adjusted for the items described in the tables included in this release and as provided for by the Company's bank credit facility, totaled $11.9 million for the fourth quarter of 2005, representing a 15.5% increase over the $10.3 million in Adjusted EBITDA for the same period in 2004. The increases in EBITDA and Adjusted EBITDA were primarily due to the year-over-year revenue growth resulting primarily from the Company's various acquisitions during the past year, as highlighted above, and by continued growth in the Company's bank and network branding revenues, partially offset by cost increases in certain areas, including vault cash rental and SG&A costs.

EBITDA and Adjusted EBITDA are non-GAAP measures of financial performance. We are required by the terms of our bank credit facility to comply with certain covenants that are based on Adjusted EBITDA. Reference is made to the tables at the end of this release for a reconciliation of these items to net income.

Key Statistics:

Average transacting ATMs for the fourth quarter of 2005 totaled 26,411, representing an increase of 6.7% when compared to the 24,741 average transacting ATMs during the same period in 2004. Cash withdrawal transactions increased 13.3% to 30.7 million during the fourth quarter of 2005 from 27.1 million during the same period in 2004. Such increases were primarily due to the acquisitions consummated during 2005, as previously discussed, and the continued roll out of company-owned ATMs in Walgreens and CVS locations throughout the United States.

Average cash withdrawal transactions per ATM per month during the fourth quarter of 2005 increased 6.3% to 388 from 365 during the same period in 2004. This increase was due to the acquisition of Bank Machine Limited in the United Kingdom in May 2005, which has higher average transaction volumes than the Company's domestic operations. Average revenues per ATM per month in the fourth quarter of 2005 increased 9.2% to $846 from $775 in the same period in 2004, due to the Bank Machine acquisition and the growth of the Company's bank and network branding revenues in the United States.

"We are pleased with our growth in revenues and EBITDA and the progress we made during the year on our key strategic initiatives," remarked Jack Antonini, Chief Executive Officer of Cardtronics. "We believe that the investments we've made and continue to make in our bank and network branding initiatives, including the accelerated roll out of ATMs in key domestic retail locations, our acquisition of the Allpoint surcharge-free network, and the signing of the MasterCard surcharge-free alliance, provide a solid platform for future growth as financial institutions of all sizes look for convenient and cost-effective ways to attract and retain customers."

FULL YEAR RESULTS

Financial information:

For the year ended December 31, 2005, revenues totaled $269.0 million, representing an increase of 39.5% over the $192.9 million in revenues recorded during year ended December 31, 2004. Net income for the year ended December 31, 2005, totaled $0.9 million, compared to $4.6 million for the same period in 2004. The year-over-year increase in revenues was due primarily to the full year effect of the E-TRADE ATM portfolio acquisition consummated in June 2004, and the additional acquisitions consummated during 2005, as previously discussed. The year-over-year decrease in net income was largely due to the additional interest, depreciation and amortization expense amounts associated with the aforementioned acquisitions, higher selling, general and administrative costs, the continuing impact of the accelerated Walgreens and CVS ATM roll outs, and the higher cost of debt, as previously discussed.

EBITDA totaled $43.5 million for year ended December 31, 2005, representing a 60.5% increase over the $27.1 million in EBITDA recorded during the same period in 2004. Adjusted EBITDA totaled $45.2 million for the year ended December 31, 2005, representing a 34.9% increase over the $33.5 million in Adjusted EBITDA for the same period in 2004. As was the case with the quarterly results, the increases in EBITDA and Adjusted EBITDA were driven by the Company's recent acquisitions and, to a lesser degree, increased revenues associated with the Company's bank and network branding initiatives.

Key Statistics:

Average transacting ATMs for the year ended December 31, 2005 totaled 26,175 machines, representing an increase of 45.9% when compared to the 17,936 average transacting machines during the same period in 2004. Total cash withdrawal transactions increased 37.1% to 119.0 million during the year ended December 31, 2005 from 86.8 million during the same period in 2004. Such increases were primarily due to the full year effect of the E-TRADE ATM portfolio acquisition consummated in June 2004, the additional acquisitions consummated during 2005, and the continued roll out of company-owned ATMs in Walgreens and CVS locations throughout the United States. Average cash withdrawal transactions per ATM per month for the year ended December 31, 2005 decreased 6.0% to 379 from 403 during the same period in 2004. This decrease was primarily due to the acquisition of the E-TRADE ATM portfolio in June 2004, which is primarily composed of merchant-owned ATMs that typically have lower transaction counts than the Company's owned machines. Average revenues per ATM per month in 2005 decreased 2.9% to $824 from $849 in the same period in 2004 due to the effect of the E-TRADE acquisition, partially offset by the effect of the Bank Machine acquisition and the growth of the Company's bank and network branding revenues in the United States.

The 2005 full year results are not fully reflective of the operations of the acquired BAS Communications, Inc. and Neo Concepts, Inc. portfolios (which were in transition to the Company's operating platform during the first and second quarter of 2005, respectively), or of Bank Machine Limited, which has only been included in the Company's financial results since May of 2005.

KEY HIGHLIGHTS

Recent key highlights include the following:



  -- The acquisition of ATM National, Inc., the owner and operator
     of the Allpoint surcharge-free network, for consideration
     consisting of approximately $4.0 million in cash and assumed
     liabilities, plus an additional amount of Cardtronics' common
     stock. With access to over 32,000 ATMs serving 2.6 million
     participating cardholders from over 250 financial institutions,
     Allpoint is the nation's largest surcharge-free ATM network. It
     is a major component of the Company's strategy to profitably
     participate in the market for surcharge-free ATM transactions,
     which we believe represent 70 to 75% of the total US ATM
     transaction marketplace.

  -- The purchase of a majority interest in an ATM operator in
     Mexico in February 2006. This business, which is jointly owned by
     Cardtronics and two Mexican partners, is well-positioned to
     capitalize on the anticipated growth in off-premise ATMs as a
     result of Mexico's recent decision to allow surcharging. It
     currently operates approximately 285 ATMs, primarily in retail
     stores, in Mexico.

  -- The amendment of the Company's existing bank credit facility to
     remove and amend certain restrictive covenants and to reduce the
     total borrowing capacity under the facility from $150.0 million
     to $125.0 million. The amendments, which were done to reduce cost
     and to increase the Company's overall liquidity and financial
     flexibility, reflect the expectation that the Company's future
     capital needs will be focused primarily on organic growth
     initiatives as opposed to acquisitions, as has been the case in
     the past. After taking into consideration the recent amendment,
     the Company now has approximately $43.6 million in borrowing
     capacity under its bank credit facility.

  -- The filing of a registration statement on Form S-4 in January
     2006 with the Securities and Exchange Commission ("SEC") to
     register the Company's senior subordinated notes.

GUIDANCE FOR 2006

The Company expects revenues of $270-290 million and adjusted EBITDA of $46 to $50 million for the year ending December 31, 2006.

REGISTRATION OF SENIOR SUBORDINATED NOTES

As mentioned above, the Company has filed a registration statement with the SEC to register the senior subordinated notes that it issued in August of 2005. On February 16, 2006, the Company received a letter from the SEC outlining certain comments based on the SEC's initial review of that filing. Such letters are part of the normal review process employed by the SEC with respect to the registration of securities, and the Company is in the process of responding to the SEC's comments. One such comment relates to the Company's policy with respect to how it amortizes acquired customer contract related intangible assets. The Company's policy, which has remained consistent and has been disclosed in its audited financial statements, is to amortize such assets on a straight-line basis over estimated useful lives ranging from four to ten years. The SEC has requested that the Company amortize such assets on an accelerated basis (i.e., higher amortization amounts in the early years and lower amounts in the later years), based on an assumption that the economic benefits associated with such assets decrease over time as the underlying contracts are terminated. The Company believes that its policy is appropriate and adequately reflects the method in which the economic benefits of the contracts will be realized in accordance with generally accepted accounting principles ("GAAP") and intends to discuss the appropriateness of this accounting treatment with the SEC. If as a result of these discussions, the SEC concludes that amortization on an accelerated basis is required by GAAP, the Company may be required to restate its financial information for all periods up through December 31, 2005 to reflect this change in amortization methodology. Any such change would consist of a non-cash adjustment. Such changes to the Company's historical financial information resulting from this comment would not change the Company's previously disclosed EBITDA or Adjusted EBITDA figures, but could reduce the Company's previously reported pre-tax and after-tax income amounts. At this time, the Company is unable to determine the potential magnitude of such a modification.

Non-GAAP Financial Information

EBITDA and Adjusted EBITDA are not intended to represent cash flows from operations as defined by GAAP in the United States and should not be used as an alternative to net income as an indicator of operating performance or to cash flow as a measure of liquidity. While EBITDA is frequently used as a measure of operating performance and the ability to meet debt service requirements, it is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation. Adjusted EBITDA, as presented herein, is calculated in the manner similar to that in our bank credit facility and, as such, is not comparable to other similarly titled captions of other companies. The Company believes that referencing EBITDA and Adjusted EBITDA will be helpful to our investors, as we believe it is used by the lenders under our bank credit facility in their evaluation of the Company. A reconciliation of EBITDA and Adjusted EBITDA to net income is included elsewhere in this press release.

Cautionary Note Regarding Forward-Looking Statements

The information in this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give our current expectations or forecasts of future events, future financial performance, strategies, expectations, competitive environment, regulation and availability of resources. They include, among other things, proposed new programs; expectations that regulatory developments or other matters will not have a material adverse effect on our consolidated financial position, results of operations or liquidity; trends within the ATM industry; statements concerning projections, predictions, expectations, estimates or forecasts as to our business, financial and operational results and future economic performance; and statements of management's goals and objectives and other similar expressions concerning matters that are not historical facts. Such statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements, including risks and uncertainties relating to reliance on third parties for cash management services; increased regulation and regulatory uncertainty; trends in ATM usage; decreases in the number of ATMs we can place with our top merchants; increased industry competition; our ability to continue to execute our growth strategies; risks associated with the acquisition of other ATM networks; changes in interest rates; declines in, or system failures that interrupt or delay, ATM transactions; changes in the ATM transaction fees we receive; changes in ATM technology; changes in foreign currency rates; and general and economic conditions.

You should not read forward-looking statements as a guarantee of future performance or results. They will not necessarily be accurate indications of the times at or by which, such performance or results will be achieved. Forward-looking statements speak only as of the date the statements are made and are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events. We assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information.

About Cardtronics

Headquartered in Houston, Texas, Cardtronics is the world's largest owner/operator of ATMs with a nationwide U.S. network of more than 26,000 locations operating in every major market and in all 50 states as well as over 1,000 locations throughout the UK. Major merchant-clients include A&P(R), Albertson's(R), Amerada Hess(R), Barnes & Noble(R) College Bookstores, BP(R) Amoco, Chevron(R), Costco(R), CVS(R)/pharmacy, ExxonMobil(R), Duane Reade(R), Rite Aid(R), SSP/Circle K(R), Sunoco(R), Target(R) and Walgreens(R). Cardtronics also works closely with financial institutions across the U.S. to brand ATMs in these major merchants to provide convenient access for their customers and to preserve and expand their markets. For more information about Cardtronics, please visit http://www.cardtronics.com/.

The Cardtronics logo is available at: http://www.primezone.com/newsroom/prs/?pkgid=991



                  Cardtronics, Inc. and Subsidiaries
                 Consolidated Statements of Operations
       Three and Twelve Months Ended December 31, 2005 and 2004
                            (in thousands)
                              (unaudited)

                                Three Months Ended Twelve Months Ended
                                   December 31,        December 31,
                                ------------------  ------------------
                                  2005      2004      2005      2004
                                --------  --------  --------  --------
 Revenues:
  ATM operating revenues        $ 67,023  $ 57,541  $258,754  $182,711
  ATM product sales and
   other revenues                  2,754     4,433    10,211    10,204
                                --------  --------  --------  --------
   Total revenues                 69,777    61,974   268,965   192,915
 Cost of revenues:
  Cost of ATM operating revenues  51,064    45,293   199,592   143,504
  Cost of ATM product sales and
   other revenues                  2,709     3,706     9,685     8,703
                                --------  --------  --------  --------
   Total cost of revenues         53,773    48,999   209,277   152,207
   Gross profit                   16,004    12,975    59,688    40,708
 Operating expenses:
  Selling, general and
   administrative expenses         4,653     4,720    16,205    13,571
  Depreciation and accretion
   expense                         4,421     2,528    12,951     6,785
  Amortization expense             2,136     1,416     7,825     5,508
                                --------  --------  --------  --------
   Total operating expenses       11,210     8,664    36,981    25,864
 Income from operations            4,794     4,311    22,707    14,844
 Other expenses:
  Interest expense                 5,506     1,732    15,531     4,156
  Amortization and write-off of
   deferred financing costs          325       107     4,524     2,894
  Minority interest in
   subsidiary                         (2)       10        15        19
  Other                              103       (19)      968       209
                                --------  --------  --------  --------
   Total other expenses            5,932     1,830    21,038     7,278
 Income (loss) before income
  taxes                           (1,138)    2,481     1,669     7,566
 Income tax provision (benefit)     (250)    1,025       722     2,956
                                --------  --------  --------  --------
 Net income (loss)                  (888)    1,456       947     4,610
 Preferred stock dividends and
  accretion expense                   67       603     1,395     2,312
                                --------  --------  --------  --------
 Net income (loss) available to
  common stockholders           $   (955) $    853  $   (448) $  2,298
                                ========  ========  ========  ========

                  Cardtronics, Inc. and Subsidiaries
                 Condensed Consolidated Balance Sheets
                   As of December 31, 2005 and 2004
                            (in thousands)
                                                    December 31,
                                               ----------------------
                                                 2005         2004
                                               ---------    ---------
                                              (unaudited)
 Assets
 Current assets:
  Cash and cash equivalents                    $   1,699    $   1,412
  Accounts and notes receivable, net               9,746       11,473
  Inventory                                        2,747        2,609
  Prepaid, deferred costs, and other
   current assets                                  8,533        2,503
  Deferred tax asset                                  --        2,412
                                               ---------    ---------
 Total current assets                             22,725       20,409
 Property and equipment, net                      74,151       44,992
 Intangible assets, net                           73,446       43,077
 Goodwill                                        157,873       84,977
 Prepaid and other assets                         12,099        1,854
                                               ---------    ---------
 Total assets                                  $ 340,294    $ 195,309
                                               =========    =========
 Liabilities and Stockholders' Deficit
 Current liabilities:
  Current portion of long-term debt
   and notes payable                           $   3,126    $  15,000
  Current portion of other long-term
   liabilities                                     2,293        1,176
  Accounts payable, accrued liabilities
   and other current liabilities                  42,282       24,814
                                               ---------    ---------
 Total current liabilities                        47,701       40,990
 Long-term liabilities:
  Long-term debt, net of current portion         244,456      113,541
  Deferred tax liability                           7,880        6,231
  Other long-term liabilities and
   minority interest in subsidiary                14,393       13,077
                                               ---------    ---------
 Total liabilities                               314,430      173,839
                                               ---------    ---------
 Redeemable preferred stock                       76,329       23,634
 Stockholders' deficit                           (50,465)      (2,164)
                                               ---------    ---------
 Total liabilities and stockholders' deficit   $ 340,294    $ 195,309
                                               =========    =========

                  Cardtronics, Inc. and Subsidiaries
                         Key Operating Metrics
       Three and Twelve Months Ended December 31, 2005 and 2004
                              (unaudited)

                        Three Months Ended       Twelve Months Ended
                           December 31,             December 31,
                      ----------------------  ------------------------
                         2005        2004         2005        2004
                      ----------  ----------  -----------  -----------
 Average number
  of transacting
  ATMs                    26,411      24,741       26,175       17,936
 Monthly with-
  drawal trans-
  actions per ATM            388         365          379          403
 Total withdrawal
  transactions        30,739,718  27,074,116  118,960,461   86,820,781
 Total
  transactions        41,698,961  34,865,152  156,851,207  111,576,931

 Per ATM amounts
 (per month):
  Operating
   revenues           $      846  $      775  $       824  $       849
  Operating
   expenses                  645         610          635          667
                      ----------  ----------  -----------  -----------
 ATM operating
  gross profit        $      201  $      165  $       189  $       182
                      ==========  ==========  ===========  ===========

 ATM operating
  gross margin              23.8%       21.3%        22.9%        21.4%

 Capital
  expenditures 
  (000s)              $    4,698  $    7,352  $    32,102  $    20,641

                  Cardtronics, Inc. and Subsidiaries
   Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
       Three and Twelve Months Ended December 31, 2005 and 2004
                            (in thousands)
                              (unaudited)

                               Three Months Ended   Twelve Months Ended
                                  December 31,          December 31,
                               ------------------    -----------------
                                2005       2004       2005      2004
                               -------    -------    -------   -------
 Net income (loss)             $  (888)   $ 1,456    $   947   $ 4,610
 Interest expense                5,831      1,839     20,055     7,050
 Income tax expense (benefit)     (250)     1,025        722     2,956
 Depreciation and accretion
  expense                        4,421      2,528     12,951     6,785
 Amortization expense            2,136      1,416      7,825     5,508
 Other (income) loss               101         (9)       983       228
                               -------    -------    -------   -------
 EBITDA                         11,351      8,255     43,483    27,137
 Stock compensation expense        131        147        563     2,854
 Acquisition related
  transition costs                 216        370        937     1,587
 Initial public offering costs      --      1,449         22     1,844
 Other                             210         52        205        52
                               -------    -------    -------   -------
 Adjusted EBITDA               $11,908    $10,273    $45,210   $33,474
                               =======    =======    =======   =======
Cardtronics, Inc.
Investor: J. Chris Brewster, CFO
         281-892-0128
         cbrewster@cardtronics.com
 
 Media:  Dawn Thompson, Director of Marketing
         281-596-9988 x1359
         dthompson@cardtronics.com