buy back, page-5

Hi Lukentel...you need to factor in the current state of the market. A number of stocks have come of 10 to 20% in the last month. If it assists latest research from Ord Minnet. They have a $3.20 valuation. They correctly picked
weak retail environment impacting on cash withdrawals from
ATM machines and competition. They have an excellent business model, are the most efficent and lowest cost deplyer in the business. Short term it's time to hold one's nerve as I think the return to + $3 in 6 to 12 months away in this market unless some surprising and good news announcements are made.

EPS FY10 -7% / FY11 -2%: earnings downgrades due to the weak retail environment which we expect is impacting cash withdrawals on CUS ATMs. Reduced volumes are partly offset by EPS accretion from the share buyback (1.2m shares to date).

- New Zealand persistence (pg 3): negotiations with the 2 residual NZ banks (ANZ & ASB) have proved a difficult process however we remain confident CUSs persistence will pay off. We estimate full NZ launch would impact NPAT by -4% in FY11, +2% in FY12 and +4% in FY13. A relatively modest earnings benefit but positive for sentiment by illustrating CUSs ability to execute on expansion plans and over time diversify the earnings base. EPS accretion will be greater if CUS can negotiate a cheaper acquisition price.

- MyATM to IPO (pg 4): this aggressive but relatively small, independent operator expects to IPO in the next few months (mkt cap c. $54m). It pays merchant fees of 50 80 cents (depending on bailment) above CUSs $0.41 and charges $2 per transaction but expects to increase this to $2.50.

- 8cps capital return approved: CUS goes ex-entitlement on 10 May, 2010.

- Buy retained / $3.20 valuation: the weak retail environment and its negative impact on consensus earnings forecasts is likely to weigh on the share price in the short term (OML FY10 EBITDA is 4% below consensus). However we still expect solid growth in FY11 due to ATM rollout and pricing increases. An FY11 PE of 11.6x and 6% yield looks attractive