Canadian Bank Note Company, Limited to produce first polymer bank notes in Africa

17.03.03

Canadian Bank Note Company, Limited (TSX:CBK) announced today the signing of a contract with the Bank of Zambia for the printing and supply of two denominations of Kwacha banknotes to be printed on a high security polymer substrate. This contract marks the first polymer banknotes to be issued in Africa and is indicative of increasing global acceptance of "polymer" as a new and advanced banknote technology. The dollar value of the contract amounts to less than 10% of Canadian Bank Note Company's (CBN) annual sales.

"Polymer substrate is playing a key role in shaping the future of banknotes. We have developed the necessary technology to include polymer in our product offering," explained Hutch Holton, President, Payment Systems. "For countries in which banknotes need the highest level of security or have a short lifespan due to climate conditions, polymer is an excellent means of ensuring the security and longevity of the local currency. The Bank of Zambia's decision to issue two of its denominations in polymer banknotes positions this country as a leader in the introduction of this technology in the region."

Polymer banknote substrate is a uniquely manufactured and coated, thin, resilient plastic material that offers a significantly longer circulation life for banknotes than traditional paper-based notes. These banknotes deliver enhanced security, cleanliness and offer a significant reduction in the costs associated with the issuing, inspection and withdrawal of banknotes from circulation. Australia and New Zealand were the first countries to adopt polymer for all their banknotes. Numerous other countries have a mix of paper and polymer notes in circulation.

Canadian Bank Note Company, Limited supplies printed products and related issuing and control systems in four business areas; Lottery, Identification, Payment and Shareholder Services. The Company has extensive manufacturing operations for printing currency, passports, visas, lottery tickets, postage and other related products as well as for producing hardware devices such as passport and card readers and lottery terminals. The Company has a large complement of software engineers for designing software systems. Products, services and systems are now marketed in more than 40 countries.

CBN is listed on The Toronto Stock Exchange under the symbol CBK.