VendingData(TM) Corporation Reports Third Quarter 2003 Financial Results

VendingData(TM) Corporation Reports Third Quarter 2003 Financial Results
Revenues Increased 18 Percent Over Prior Quarter 


LAS VEGAS, Nov. 13  /PRNewswire-FirstCall/ -- VendingData(TM) Corporation 
(BULLETIN BOARD: VNDC) , a manufacturer and distributor of products for the
gaming industry that are intended to increase customers' security, productivity
and profitability, today reported revenues for the third quarter ended September
30, 2003 of $2.6 million compared to $2.2 million for the second quarter of 2003
and $625,000 for the third quarter of 2002.  Revenues for the quarter consisted
of, in part, SecureDrop(R) sales of $790,000; shuffler sales of $602,000;
shuffler rentals of $217,000; and Deck Checker(TM) sales of $1.0 million. 
Overseas revenues amounted to $600,000 for the third quarter compared to $75,000
in the second quarter of 2003.

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The Company reported a quarterly net loss applicable to common stockholders of
$(1.2) million or $(0.15) per share for the third quarter of 2003.   This
compares to a second quarter 2003 loss of $(1.3) million or $(0.18) per share
and a loss of $(1.7) million or $(0.23) per share for the third quarter of 2002.
 Interest expense in the quarter totaled $760,000 compared to $505,000 for the
third quarter of 2002.

VendingData(TM)'s gross margin during the third quarter averaged 45.9 percent. 
The transitioning costs of moving operations to China and the cost of running
dual operations during the months of July and August coupled with separation
costs at the Las Vegas facility put pressure on third quarter margins.  The
Company expects its gross margin to improve as it benefits from lower costs
associated with the transfer of its manufacturing operations to China and as
economies of scale are achieved through increased unit production.

The Company's selling, general and administrative (SG&A) expenses for the third
quarter increased $402,000 or 47.0 percent to $1.3 million over 2002 third
quarter levels.  The increase primarily reflects travel and lodging expenses
required to establish assembly and warehouse operations in China and increased
legal fees associated with the Shuffle Master litigation and regulatory
expenses.

Steven J. Blad, CEO of the Company, commented, "After years of development and
laying the foundation to commercialize our technology, the company has reached
the point in its life cycle where we are aggressively introducing the benefits
of our technology throughout the worldwide gaming industry."  Mr. Blad
continued, "We effectively implemented cost reductions over the last two
quarters as we successfully shifted the majority of our manufacturing to
Guangdong Province in China, the effects of which we believe will be realized in
the coming quarters. We are confident that these and other initiatives will have
a positive impact on our gross margins and our overall profitability going
forward."

QUARTER HIGHLIGHTS AND RECENT DEVELOPMENTS

VendingData(TM) Corporation Filed a Registration Statement for its Proposed
Public Offering

A registration statement has been filed with the Securities and Exchange
Commission for a public offering of at least 3,000,000 shares and up to
5,000,000 shares of VendingData(TM) common stock. The shares will be offered on
a best efforts basis through Philadelphia Brokerage Corporation which is serving
as the placement agent for the offering.  The registration statement for the
proposed offering has not yet been declared effective.

VendingData(TM) Corporation Received OTC Bulletin Board Listing Approval

Effective September 10, 2003, the Company's common stock was quoted on the OTC
Bulletin Board (OTCBB) under the ticker symbol "VNDC".  Concurrently,
Brockington Securities was approved to publish quotes for shares of
VendingData(TM) Corporation common stock.

Seasoned Gaming Executive Hired as Vice President of Corporate Sales

Larry McCoy joined VendingData(TM) in September 2003 and assumed the
responsibility of marketing SecureDrop(R) to major companies throughout the
gaming industry, with emphasis on North and South America.  McCoy has extensive
experience in the gaming industry, including positions as Vice President of
Sales at Shuffle Master Gaming, Director of Sales at Aristocrat Technologies,
Director of Casino Sales at JCM Corporation and National Manager of Sales and
Marketing at Sigma Gaming Inc.

SecureDrop(R) has been installed in Six Park Place Entertainment Locations

During the third quarter, VendingData(TM) completed the installation of its
SecureDrop(R) Soft Count Module in 8,025 slot machines at six of Park Place
Entertainment's 29 locations; Caesars Palace Las Vegas, Caesars Tahoe, Flamingo
Las Vegas, O'Sheas, Bally's Las Vegas and Paris Las Vegas. The first
SecureDrop(R) Soft Count Module went live in June 2002, with current
installations in 8 casinos worldwide.

15 Deck-Checkers(TM) were delivered to China - RGB Group to handle distribution
into Asia

During the third quarter, VendingData(TM) executed purchase agreements for 15
Deck-Checkers(TM), which have been delivered to RGB Group for eventual
distribution in various locations in Asia including Macau, China, one of the
largest entertainment centers in Asia with a reputation of offering the widest
range of casino games in the world.

Deck-Checkers(TM) were delivered to TCSJOHNHUXLEY for Overseas Distribution

During the third quarter, VendingData(TM) executed a purchase agreement for
DeckCheckers(TM) and ancillary products totaling $225,000 with TCS Aces, the
Australian based subsidiary of TCSJOHNHUXLEY for delivery to facilities in both
Australia and the United Kingdom.

Random Ejection Shufflers(TM) were installed in Harrah's New Orleans Casino

Harrah's New Orleans Casino replaced its stock of multiple deck automatic
shufflers with the purchase of 53 VendingData(TM) Random Ejection Shufflers(TM).
  Installation was completed on October 31, 2003.

About VendingData(TM)Corporation

VendingData(TM) Corporation is a manufacturer and distributor of products for
the gaming industry including the SecureDrop(R) System, Deck-Checker(TM) and
Random Ejection Shuffler(TM) line. The Company's products are currently
installed in casinos throughout the world, including Caesars Palace, Circus
Circus, Harrah's Entertainment, Luxor, Oneida Bingo & Casino, Sunset Station and
the Venetian in the United States, and in casinos in Argentina, China, Columbia,
Korea, Malaysia, Peru, United Kingdom and Uruguay.  Visit the VendingData(TM)
website at http://www.vendingdata.com/ .

This release contains forward-looking statements.  Such statements reflect and
are subject to risks and uncertainties that could cause actual results to differ
materially from expectations.  Factors that could cause actual results to differ
materially from expectations include, but are not limited to, the following the
success of the transition of our manufacturing and assembly to China; the
successful placement of the Company's common stock pursuant to the proposed
public offering:  changes in the level of consumer or commercial acceptance of
the Company's existing products and new products as introduced; competitive
advances; acceleration and/or deceleration of various product development and
roll out schedules; higher than expected manufacturing, service, selling,
administrative, product development and/or roll out costs; current and/or
unanticipated future litigation; regulatory and jurisdictional issues involving
VendingData(TM) Corporation or its products specifically, and for the gaming
industry in general; general and casino industry economic conditions; the
financial health of the Company's casino and distributor customers both
nationally and internationally; and the risks and factors described from time to
time in the Company's reports filed with the Securities and Exchange Commission,
including, but not limited to the company's Form 10- QSB for the quarter ended
September 30, 2003.

For further information, please contact:  John Spina, Chief Financial Officer of
VendingData(TM) Corporation, [phone], , or Yvonne L. Zappulla, Managing
Director, Wall Street Investor Relations Corp., [phone], , for
VendingData(TM) Corporation.

                         VENDINGDATA CORPORATION
                         Statements of Operations
                               (UNAUDITED)

                          Three Months Ended        Nine Months Ended
                             September 30,             September 30,
                            2003         2002         2003         2002

  Sales               $2,403,395     $252,893   $5,967,715   $1,780,764
  Rental                 216,818      358,044      847,561    1,073,478
  Other                    9,399       14,431        9,531       26,068
                       2,629,612      625,368    6,824,807    2,880,310

  Operating expenses:
  Cost of sales        1,421,595      619,727    3,629,520    2,384,200
  Selling, general
   and administrative  1,267,831      864,979    4,303,496    2,314,672
  Research and
   development           336,910      356,914      709,770    1,077,838
  Loss from
   operations           (396,724)  (1,216,252)  (1,817,979)  (2,896,400)

  Interest expense,
   unrelated parties     620,569      389,749    1,709,430    1,006,314
  Interest expense,
   related parties       139,256      115,439      413,559      299,608
  Total interest
   expense, net          759,825      505,188    2,122,989    1,305,922

  Net loss           $(1,156,549) $(1,721,440) $(3,940,968) $(4,202,322)


  Basic loss per share   $(0.15)      $(0.23)      $(0.51)      $(0.55)
  Weighted average
   shares
   outstanding         7,700,814    7,625,814    7,675,957    7,625,814







                         VENDINGDATA CORPORATION
                              Balance Sheet

                                                  9-30-03       12-31-02
                         ASSETS                 (Unaudited)
  Current assets:
    Cash and cash equivalents                     $314,009     $1,778,297
    Current portion of accounts receivable,
     trade, net of allowance
     for uncollectables of $25,530 and $25,530   3,138,172        106,791
    Due from affiliate                              45,029         30,593
    Other receivables                              175,373         39,305
    Inventories                                  3,747,627      1,850,051
    Prepaid expenses                               172,879        236,579
                                                 7,593,089      4,041,616

  Equipment rented to customers,
   net of accumulated depreciation of
   $1,229,870 and $1,406,574                       754,530      1,353,925
  Property & equipment, net of
   accumulated depreciation of $1,720,240
   and $1,422,313                                  930,608        593,253
  Intangible assets, net of accumulated
   amortization of $249,130 and
   $191,520                                      1,317,713        352,603
  Due from affiliate - non current                 118,800        118,800
  Accounts receivable, trade, net of
   current portion, less
   unamortized discount                          1,439,244             --
  Deferred expenses                                615,644        100,000
  Deposits                                       1,073,313        868,520
  Other assets                                     496,481        638,029
                                               $14,339,422     $8,066,746

    LIABILITIES AND STOCKHOLDERS' EQUITY DEFICIENCY
  Current liabilities:
    Current portion of leases payable          $ 2,215,939     $2,286,243
    Accounts payable                             2,079,829      1,084,637
    Accrued expenses                               254,334        385,570
    Accrued wages                                  195,176        249,147
    Accrued interest                             1,059,420        461,308
    Short-term debt                                920,743        904,743
    Current portion of convertible debt          4,953,076             --
    Customer deposits                              672,333        386,819
                                                12,350,850      5,758,467

  Convertible debt, net of current portion      12,949,996      8,853,072
  Leases payable, net of current portion         2,447,776      3,497,859
                                                27,748,622     18,109,398
  Stockholders' equity deficiency:
    Preferred stock, $.001 par value,
     10,000,000 shares authorized, no
    shares issued and outstanding                       --             --
    Common stock, $.001 par value,
     25,000,000 shares authorized, 7,700,814
     and 7,625,814 shares issued and
     outstanding                                     7,701          7,626
    Additional paid-in capital                  27,294,325     26,719,980
    Deficit                                    (40,711,226)   (36,770,258)
      Total stockholders'
       equity deficiency                       (13,409,200)   (10,042,652)
      Total liabilities and stockholders'
       equity deficiency                       $14,339,422     $8,066,746


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DATASOURCE: VendingData Corporation



CONTACT:  John Spina, Chief Financial Officer of VendingData(TM)

Corporation, [phone], , or Yvonne L. Zappulla,

Managing Director, Wall Street Investor Relations Corp., [phone],

, for VendingData(TM) Corporation



Web site:  http://www.vendingdata.com/

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