GBM has been Diebold's distributor in that region for more than 15 years, providing Diebold with a strategic presence in a key Latin American market. The new operation, expected to be effective January 1, 2008, will operate under the name Diebold Central America. Its main objectives will be to provide extended coverage and improved services for financial industry and security customers in each country in the region.

The companies anticipate finalizing this agreement by the end of the year. As part of the agreement, Diebold intends to purchase a controlling share of GBM's automated teller machine (ATM) distribution business. This agreement will have no effect on the balance of GBM's enterprise, which primarily offers IBM solutions to businesses throughout Central America. In the new combined operation, Diebold will provide its expertise in sales and service for financial self-service and security products, and GBM will lend its knowledge of the Central American market and the continuity of its experience as Diebold's distributor in the region.

Diebold Central America will be based in San Jose, Costa Rica and will have approximately 50 employees as part of the operation. Jose Ardon will serve as general manager for Diebold Central America, which will form the rest of its leadership team during the next several weeks.

The new operation will provide Diebold the opportunity to further develop its presence and continue to grow in the region. "The agreement to form Diebold Central America will allow us to introduce new solution sets to the region, such as electronic and physical security products, imaging capabilities and outsourcing infrastructure and expertise", said Miguel A. (Mike) Mateo, Diebold vice president and general manager, Latin America. "GBM, which has a well-established IT presence in Central America, will provide us a talented foundation and recognizable name upon which to leverage our own, direct presence."

"For GBM, this agreement provides a win-win situation to our customers, not only for the financial sector but to public, industry and distribution sectors as well," said Manuel Kaver CEO of the GBM Corporation. "Diebold will provide high-valued additional services and GBM will continue focusing on technology solutions according to the new and centralized structures of the industries. Our customers will be better served through each organization specialization".