"The Epic Ten80(TM) provides casinos with a printer that meets their needs today, but more importantly will meet their needs for years to come," said Bart C. Shuldman, Chairman, President and Chief Executive Officer of TransAct. "We've listened to casinos tell us what they need for both ticket printing and promotional and coupon printing, and then taken that knowledge and placed it all into a best-of-class printer. Whether an operator is expanding their slot floor or replacing gaming machines, the Epic Ten80(TM) is the 'smart' choice that will provide operators the ability to use one printer for all games and drive promotions directly to the game."

In addition to the Epic Ten80(TM), TransAct will feature its complete portfolio of casino/gaming printers and technology solutions including:

 * Epic 950(R) Thermal Slot Machine Printer:  This award-winning,
   highly reliable and robust printer offers numerous advanced
   features including quick disconnect, reliable ticket burst and
   present, low-ticket sensing and USB connectivity;

 * ServerPort(TM):  Providing a clear upgrade path for casinos and
   slot machine manufacturers to promotional or coupon printing,
   ServerPort(TM) easily upgrades existing Epic 950(R) printers
   with an array of capabilities including the ability to connect
   directly to player tracking systems to print promotional offers
   or coupons at the slot machine;

 * Epic 880(TM) Thermal Gaming Receipt Printer:  This feature-rich
   printer is the clear choice for game manufacturers who desire a
   fully configured printer that includes a transport to assist in
   exiting the receipt out of the game.  This printer solution is
   perfect for gaming applications such as Video Lottery Terminals,
   Fixed Odds Betting, Amusement with Prize and Skill with Prize
   machines;

 * Epic 430(R) Thermal Gaming Receipt Printer:  With a small
   modular design, the printer allows game manufacturers the
   ability to configure the printer to any space or game machine
   requirement, bringing a new level of ease, quality and
   convenience;

 * Ithaca(R) 8000 Sticky Label and Receipt Printer:  This
   dual-purpose printer allows receipts to be printed on standard
   thermal paper or liner-free labels -- providing flexibility and
   value which helps streamline operations for quick-serve, fast
   casual and take-out restaurants; and

 * Ithaca(R)8040 Thermal Linerless Label/Receipt Printer:
   Featuring a two-inch wide receipt that will adhere to the
   customer's coffee or beverage cup, the Ithaca(R) 8040 makes it
   simple for employees behind the counter to process the
   customer's order more quickly and efficiently.

For more information, please visit Booth #2643 or visit www.TRANSACT-TECH.com

About TransAct Technologies Incorporated

TransAct Technologies Incorporated (Nasdaq:TACT) is a leader in developing and manufacturing market-specific printers for transaction-based industries. These industries include casino, gaming, lottery, banking, kiosk and point-of-sale. Each individual market has distinct, critical requirements for printing and the transaction is not complete until the receipt and/or ticket is produced. TransAct printers are designed from the ground up based on market specific requirements and are sold under the Ithaca(R) and Epic product brands. TransAct distributes its printers through OEMs, value-added resellers, selected distributors, and direct to end-users. TransAct has over two million printers installed around the world. TransAct is committed to world-class printer service, spare parts and accessories required by a growing worldwide installed base of printers. Beyond printers, TransAct is a leader in providing printing supplies to the full transaction printer market. Through its TransAct Services Group, TransAct provides a complete range of supplies and consumables items used in the printing and scanning activities of customers in the hospitality, banking, retail, gaming and government markets. Through its webstore, http://www.transactsupplies.com, and a direct selling team, TransAct addresses the growing on-line demand for these products. TransAct is headquartered in Hamden, CT. For more information on TransAct, visit http://www.transact-tech.com or call 203.859.6800.

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: TransAct Technologies, Inc.

CONTACT: TransAct Technologies Incorporated
203.859.6800
http://www.transact-tech.com

TransAct, recognized as the premier innovator in transaction printer technology, developed the Epic Ten80 to ensure the printer needs of casino operators are met for TODAY and well beyond. This revolutionary printer is configured so that casinos can have just one printer for all game types and all slot manufacturers. In addition, the printer has internally integrated its patented dual-port technology and includes the interfaces to allow casinos the opportunity to drive promotions and coupons. And finally, the new Epic Ten80 will provide casinos with a printer that conducts the transaction in approximately 30% faster transaction time with also 33% more paper capacity.

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Free annual reports, filings and conference call webcasts for companies mentioned in the news are available via Investrend Syndications (http://investrend.ar.wilink.com/?level=279). Tuesday's issued reports and/or recorded webcasts include Cavico Corp. (OTCBB: CVIC), Thornburg Ltd. Term Income Fund (NASDAQ: THIFX), Apache Corp. (NYSE: APA), Baytex Energy Trust (NYSE: BTE), Citizens, Inc. (NYSE: CIA), Scottish Oriental Smaller Companies Trust PLC (OTC: SCSHF) (London Stock Exchange: SOST), JPMorgan Elect Plc (London Stock Exchange: JPE) and Solitario Exploration & Royalty Corp. (AMEX: XPL).

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"We are extremely pleased with our third quarter 2009 results," said Bart C. Shuldman, Chairman, President and Chief Executive Officer of TransAct Technologies. "We stayed focused on our strategy and delivered solid results despite the current economic climate. I am proud of the focus and teamwork put forth by our employees who delivered a quarter of record sales in these difficult economic times."

Mr. Shuldman continued, "Our banking and point-of-sale business experienced significant quarter-over-quarter revenue growth of 95%, led primarily by orders from a large banking customer and also increasing sales from the McDonald's coffee and grill initiative. TransAct Services Group (TSG) revenues increased by 40% compared to the third quarter of 2008, primarily due to continued strength in our consumables business, including significantly higher inkjet cartridge sales to a large customer. Our international gaming sales increased 49%, helping to offset a 29% decline in our worldwide casino and gaming printer sales compared to the third quarter of 2008 that resulted largely from a continued slowdown in North American replacement slot machine sales. Lottery sales, which can vary significantly from quarter-to-quarter, declined by 30% due to the timing of orders from our lottery customer. Finally, our balance sheet remains strong, with over $5.5 million in cash and no outstanding debt."

Third Quarter 2009 Results

Revenue for the third quarter of 2009 was $18.0 million, an increase of 4% compared to $17.3 million in the prior-year period. Gross margin for the quarter was 30.7%, compared to 34.0% in the prior-year quarter as the Company worked to use a substantial portion of its existing, higher cost domestic inventory and also sold more lower margin products. Operating expenses were $3.7 million, a decrease of $0.3 million from the prior-year period driven largely by reduced general and administrative expenses. The Company recorded net income in the third quarter of 2009 of approximately $1.2 million, or $0.13 per diluted share, comparable to the prior-year period.

Commenting on the financial results, Steven A. DeMartino, Executive Vice President and Chief Financial Officer of TransAct Technologies said, "Beginning in the third quarter of 2008, we increased the amount of domestic inventory as we prepared for the production transition to China. As the transition was finalized this quarter, our manufacturing group converted a significant amount of the domestic inventory into finished printers, allowing us to meet the increase in demand while also helping to significantly reduce our inventory levels. The additional labor and material costs required to convert the domestic inventory into the printers we sold negatively impacted our gross margin in the third quarter of 2009. However, as a result of the conversion process, we were able to reduce our inventory by $5.7 million, or 47%, to $6.4 million at September 30, 2009, from its peak level of $12.1 million on March 31, 2009. More importantly, with our higher cost domestic inventories nearly depleted, we have now transitioned to our lower cost China-sourced product. This should result in improving gross margin as well as additional cash generation over the quarters ahead. In fact, we now expect our year-end cash position to be over $8 million."

Nine Month 2009 Results

Revenue for the nine months ended September 30, 2009 was $44.4 million, a decrease of 7% compared to $47.9 million in the prior-year period. Gross margin for the nine months ended September 30, 2009 was 32.7%, compared to 33.7% in the prior-year period. Operating expenses were $11.5 million, a decrease of $3.4 million from the prior-year period driven largely by the absence of $3.0 million of legal fees incurred in the prior-year period in connection with the now-settled litigation with FutureLogic, Inc., as well as a reduction in overall operating expenses from cost reduction actions taken during 2009. The Company recorded net income of approximately $2.0 million, or $0.21 per diluted share, for the nine months ended September 30, 2009, compared to net income of approximately $0.8 million, or $0.08 per share, for the prior-year period in 2008. Severance costs reduced net income and earnings per share in the first nine months of 2009 by $0.2 million and $0.01, respectively, while legal fees associated with the FutureLogic, Inc. litigation reduced net income and diluted earnings per share in the first nine months of 2008 by $1.9 million and $0.21, respectively.

Liquidity and Capital Resources

As of September 30, 2009, TransAct had approximately $5.5 million in cash and cash equivalents, and no debt obligations outstanding under the Company's $20 million revolving credit facility. During the third quarter of 2009, the Company did not repurchase any shares under its stock repurchase program. As of September 30, 2009, the Company had repurchased a total of 1,164,100 shares for approximately $8.5 million under its current authorization. TransAct's $15 million repurchase program allows the Company to repurchase up to $6.5 million in additional shares through March 2010.

Investor Conference Call / Webcast Details

TransAct will review detailed third quarter 2009 results during a conference call today at 5:00 PM EST. The conference call-in number is 888-359-3610. A replay of the call will be available from 8:00 PM EST on Monday, November 2 through midnight EST on Monday, November 9 by telephone at 888-203-1112; passcode 3094364. Investors can also access the conference call via a live webcast on the Company's Web site at http://www.transact-tech.com. A replay of the call will be archived on that Web site for one week.

About TransAct Technologies Incorporated

TransAct Technologies Incorporated (Nasdaq:TACT) is a leader in developing and manufacturing market-specific printers for transaction-based industries. These industries include casino, gaming, lottery, banking, kiosk and point-of-sale. Each individual market has distinct, critical requirements for printing and the transaction is not complete until the receipt and/or ticket is produced. TransAct printers are designed from the ground up based on market specific requirements and are sold under the Ithaca(R) and Epic product brands. TransAct distributes its printers through OEMs, value-added resellers, selected distributors, and direct to end-users. TransAct has over two million printers installed around the world. TransAct is committed to world-class printer service, spare parts and accessories required by a growing worldwide installed base of printers. Beyond printers, TransAct is a leader in providing printing supplies to the full transaction printer market. Through its TransAct Services Group, TransAct provides a complete range of supplies and consumables items used in the printing and scanning activities of customers in the hospitality, banking, retail, gaming and government verticals. Through its webstore, http://www.transactsupplies.com, and an expert direct selling team, TransAct addresses the rapidly growing on-line demand for this product category. TransAct is headquartered in Hamden, CT. For more information on TransAct, visit http://www.transact-tech.com or call 203.859.6800.

Forward-Looking Statements:

Certain statements in this press release include forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology, such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe" or "continue" or the negative thereof or other similar words. All forward-looking statements involve risks and uncertainties, including, but are not limited to, customer acceptance and market share gains, both domestically and internationally, in the face of substantial competition from competitors that have broader lines of products and greater financial resources; introduction of new products into the marketplace by competitors; successful product development; dependence on significant customers; dependence on significant vendors; dependence on a sole source contract manufacturer for the assembly of a large portion of the Company's products in China; dependence on ability to obtain competitive pricing and other terms from our contract manufacturer and other suppliers; the ability to protect intellectual property; the ability to recruit and retain quality employees as the Company grows; dependence on third parties for sales outside the United States, including Australia, New Zealand, Europe, Latin America and Asia; economic and political conditions in the United States, Australia, New Zealand, Europe, Latin America and Asia; marketplace acceptance of new products; risks associated with foreign operations; availability of third-party components at reasonable prices; price wars or other significant pricing pressures affecting the Company's products in the United States or abroad; and risks associated with potential future acquisitions. Actual results may differ materially from those discussed in, or implied by, the forward-looking statements. The forward-looking statements speak only as of the date of this release and the Company assumes no duty to update them to reflect new, changing or unanticipated events or circumstances.

                  TRANSACT TECHNOLOGIES INCORPORATED
                   CONSOLIDATED STATEMENTS OF INCOME
                             (Unaudited)

                                Three Months Ended   Nine Months Ended
 (In thousands, except per         September 30,       September 30,
  share amounts)                ------------------  ------------------
                                  2009      2008      2009      2008
                                --------  --------  --------  --------
 Net sales                       $17,982   $17,326   $44,420   $47,930
 Cost of sales                    12,457    11,432    29,913    31,797
                                --------  --------  --------  --------
 Gross profit                      5,525     5,894    14,507    16,133
                                --------  --------  --------  --------
 Operating expenses:
   Engineering, design and
    product development              683       713     2,043     2,119
   Selling and marketing           1,434     1,430     4,287     4,397
   General and administrative      1,614     1,838     5,162     5,335
   Legal fees associated with
    lawsuit                           --        --        --     3,029
                                --------  --------  --------  --------
                                   3,731     3,981    11,492    14,880
                                --------  --------  --------  --------
 Operating income                  1,794     1,913     3,015     1,253
                                --------  --------  --------  --------
 Other income (expense):
   Interest, net                     (15)       (3)      (48)       (6)
   Other, net                          2       102       (28)       96
                                --------  --------  --------  --------
                                     (13)       99       (76)       90
                                --------  --------  --------  --------
 Income before income taxes        1,781     2,012     2,939     1,343
 Income tax provision                597       802       985       535
                                --------  --------  --------  --------
 Net income                       $1,184    $1,210    $1,954      $808
                                ========  ========  ========  ========
 Net income per common share:
   Basic                           $0.13     $0.13     $0.21     $0.09
   Diluted
                                   $0.13     $0.13     $0.21     $0.08
 Shares used in per share
  calculation:
   Basic                           9,294     9,340     9,279     9,309
   Diluted                         9,418     9,630     9,326     9,509


            SUPPLEMENTAL INFORMATION - SALES BY SALES UNIT:

                                Three months ended   Nine months ended
                                   September 30,       September 30,
                                  2009      2008      2009      2008
                                ------------------  ------------------
 Banking and point-of-sale        $5,822    $2,984   $13,780    $8,730
 Casino and gaming                 4,726     6,681    13,042    16,958
 Lottery                           3,335     4,728     6,401    13,124
 TransAct Services Group           4,099     2,933    11,197     9,118
                                ------------------  ------------------
  Total net sales                $17,982   $17,326   $44,420   $47,930
                                ==================  ==================


                  TRANSACT TECHNOLOGIES INCORPORATED
                      CONSOLIDATED BALANCE SHEETS
                           (Unaudited)
                                            September 30,  December 31,
 (In thousands)                                 2009           2008
                                            ------------   -----------
 Assets:
 Current assets:
  Cash and cash equivalents                       $5,511        $2,000
  Receivables, net                                11,028         8,734
  Inventories                                      6,414         9,919
  Refundable income taxes                             28            35
  Deferred tax assets                              1,955         2,054
  Other current assets                               546           352
                                            ------------   -----------
   Total current assets                           25,482        23,094
                                            ------------   -----------
 Fixed assets, net                                 4,772         5,563
 Goodwill, net                                     1,469         1,469
 Deferred tax assets                               1,120         1,759
 Intangibles and other assets, net                   245           349
                                            ------------   -----------
                                                   7,606         9,140
                                            ------------   -----------
  Total assets                                   $33,088       $32,234
                                            ============   ===========

 Liabilities and Shareholders' Equity:
 Current liabilities:
  Accounts payable                                $3,659        $4,863
  Accrued liabilities                              2,048         2,847
  Deferred revenue                                   614           333
                                            ------------   -----------
   Total current liabilities                       6,321         8,043
                                            ------------   -----------

 Deferred revenue, net of current portion            427           259
 Accrued warranty, net of current portion             74           133
 Deferred rent                                       435           473
 Other liabilities                                    44            44
                                            ------------   -----------
                                                     980           909
                                            ------------   -----------
  Total liabilities                                7,301         8,952
                                            ------------   -----------

 Shareholders' equity:
  Common stock                                       105           105
  Additional paid-in capital                      21,439        20,890
  Retained earnings                               12,847        10,893
  Accumulated other comprehensive loss, net
   of tax                                            (66)          (68)
  Treasury stock, at cost                         (8,538)       (8,538)
                                            ------------   -----------
   Total shareholders' equity                     25,787        23,282
                                            ------------   -----------
  Total liabilities and shareholders' equity     $33,088       $32,234
                                            ============   ===========

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: TransAct Technologies, Inc.

CONTACT:  TransAct Technologies Incorporated
Steven DeMartino, EVP and Chief Financial Officer
203-859-6810
ICR Inc.
William Schmitt
203-682-8200

Expected next investor conference call information:
Conference Call Date: 11/2/2009
Conference Call Time (ET): 5:00 PM
Conference Call URL: http://investor.shareholder.com/transact-tech/eventdetail.cfm?EventID=73468