In 2005, while Diebold had several strong and positive areas of accomplishment, our overall performance was very disappointing. Some challenges remain, and your board of directors and management team are committed to seeing Diebold return to more profitable growth as soon as practical.

Our company has excellent global customers as growth partners. We provide them with an outstanding portfolio of products and services. Our worldwide employees are knowledgeable and dedicated. Led by an experienced and dynamic new leader, we will restore performance based on these strengths.

As chairman, I want to express to you our confidence in Tom Swidarski and Diebold's global management team. They are now and will continue to forthrightly and decisively address and correct the issues that affected Diebold's recent performance.

We are focused on the right priorities: enhancing customer quality, service and satisfaction; improving our global operations, infrastructure and costs; and more effectively leveraging our global resources and talent. Executing these well is crucial to improving the company's performance as we implement our strategic growth strategy.

I hope you conclude from my comments that we are confident and optimistic about our future.

We thank you for your continued support.

Sincerely,

John N. Lauer
Non-executive Chairman of the Board