SANTA ANA, Calif., Oct. 26 /PRNewswire-FirstCall/ -- TROY Group, Inc. (OTC:TROY) announced today that its Board of Directors has declared a special cash dividend of $1.00 per share of its outstanding common stock. This special dividend will be payable on November 24, 2006 to stockholders of record on November 10, 2006. Mr. Patrick J. Dirk, Chairman and CEO commented, "The Board determined that the Company has adequate cash reserves to allow it to provide its stockholders a special dividend, which may have certain income tax benefits for them. As TROY currently has no long-term debt, it is the opinion of the Board that the Company's cash balance after this dividend and its currently unutilized $5 million line of credit give the Company adequate resources to continue to invest in its business. The Board also believes that this special dividend allows our stockholders to share in the continued cost-savings from the Company's deregistration and positive results in 2006." Mr. Dirk continued, "This special dividend should not be construed as a determination by the Board of Directors to pay regular dividends. Any future consideration of dividends will be based on TROY's operating results, financial condition, cash requirements, future prospects and other factors." For U.S. federal tax purposes, TROY has estimated that a portion of the special cash dividend will be treated as a tax free return of capital. The exact amount of the return of capital is dependent on the earnings of the Company through the end of its fiscal year and is subject to confirmation through the completion of a formal evaluation process which is expected to take several months. Once a final determination is made, tax notices will be sent to individual stockholders. Stockholders are encouraged to consult with their financial advisors regarding the implications of the ex-dividend and holder of record dates and their tax advisors regarding the tax treatment of the special cash dividend. The ex-dividend date will be determined by the National Association of Securities Dealers, Inc. About TROY Group TROY Group, Inc. ("TROY") is a worldwide provider of secure payment solutions. Our security printing solutions include application software, high security check printing hardware and specialized consumables for secure printing and payment applications. Our ACH (Automated Clearing House) software includes ACH processing and origination software and consulting services. We sell and service our products to major corporations, banks, key government accounts and distributors worldwide. Visit TROY at http://www.troygroup.com/. Forward-looking statements of TROY (statements that are not historical fact) in this news release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by terms such as believe, expect, may, will, estimate, could and should, and the negative of these terms or other similar expressions. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in the forward-looking statements. These risks and uncertainties include, but, are not limited to, the ability to develop new products, the ability to hire and retain qualified management, technology and other personnel, the impact of competition from existing and new technologies and companies and the other factors set forth in our periodic reports and other documents that we distribute from time to time which are available in our financial statements under certain important factors on our website TROYgroup.com or pinksheets.com. Statements included in this news release are based upon information known to TROY as of the date of this release, and TROY assumes no obligation to update information contained in this news release. TROY Group, Inc. 2331 South Pullman Street Santa Ana, CA 92705 (949) 250-3280 (949) 250-8972 Fax http://www.troygroup.com/ Contact: Myra Erickson Investor Relations DATASOURCE: TROY Group, Inc. CONTACT: Contact: Myra Erickson, Investor Relations of TROY Group, Inc., +1-949-250-3280, or fax, +1-949-250-8972 Web site: http://www.troygroup.com/

Copyright